Current Affairs PDF

REC Launches ‘SUGAM REC’, a Mobile App for 54EC Bonds Investors

AffairsCloud YouTube Channel - Click Here

AffairsCloud APP Click Here

REC launches ‘SUGAM REC’, a mobile app for 54EC Bonds InvestorsREC Limited (formerly Rural Electrification Corporation Limited) launched SUGAM REC, a mobile app for its current and future investors in REC’s 54EC Capital Gain Tax Exemption Bonds.

  • REC Limited is a Maharatna Central Public Sector Enterprise(CPSE) under the Ministry of Power

Features of the App:

i.SUGAM REC offers the ability to view complete details of their investment in REC 54EC Bonds, including the investment amount, interest rate, and maturity date.

ii.This will also allow the users to

  • download electronic bond (e-bond) certificates securely.
  • apply for new investments.
  • download important forms related to Know Your Customer (KYC) updation.
  • connect with REC’s Investor Cell via call, email, or WhatsApp.

About 54EC Bonds:

Section 54EC bonds, also known as Capital gain bonds are fixed income instruments which provide capital gains tax exemption.

  • Section 54EC of the Income Tax Act, 1961 allows taxpayers to claim a deduction from their capital gains tax liability by investing in certain bonds.

The following bonds are eligible for exemption under section 54EC:

i.Rural Electrification Corporation Limited (REC) bonds

ii.National Highways Authority of India (NHAI) bonds

iii.Power Finance Corporation Limited (PFC) bonds

iv.Indian Railway Finance Corporation Limited (IRFC) bonds

Eligibility:

To claim a tax exemption under Section 54EC, taxpayers must:

i.Be any type of taxpayer, including individuals, Hindu Undivided Families (HUFs), companies, Limited Liable Partnership (LLPs), and firms.

ii.Sell a long-term capital asset, which is land, a building, or both, that they have owned for at least 24 months.

iii.Investment should not be more than Rs 50 lakhs in the current financial year and the subsequent financial year.

Criteria:

i.To get the tax exemption, one must invest the money within 6 months of selling the immovable property. The investment cannot be redeemed for 5 years. 

ii.The tax exemption only applies to long-term capital gains from the sale of immovable property (land or buildings).

iii.The maximum exemption amount is Rs. 50 lakh.

Recent Related News:

On 3rd August 2023, the Department of Public Enterprises (DPE) under the Ministry of Finance, upgraded the status of 2 oil sector Central Public Sector Enterprises (CPSEs) namely Oil India Limited (OIL) and ONGC Videsh Ltd (OVL).

  •  The status of OIL and OVL has been upgraded to the status of Maharatna and Navratna CPSEs respectively. Earlier OIL was a ‘Navratna’ CPSE, while OVL was a Categry-I ‘Miniratna‘ CPSE.

About REC Limited:
REC Limited  is registered with Reserve Bank of India (RBI) as non-banking finance company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC).
Chairman & Managing Director (MD) – Vivek Kumar Dewangan
Headquarters- New Delhi, Delhi
Established in – 1969