54EC bonds: where to buy, limits and lock-in?

54EC bonds let you claim an exemption on long-term capital gains by investing the gain in these specified bonds. The provision is section 54EC of the Income-tax Act 1961, carried into section 85 of the Income-tax Act 2025 (SEBI circular, 14th Aug 2026). The exemption covers long-term gains from selling land or a building, and the money must be invested within 6 months of the sale.

What are the terms?

Term	Detail
Issuers	REC, PFC, IRFC and HUDCO, all rated AAA
Interest	5.25% a year, taxable at slab, no TDS
Lock-in	5 years; non-transferable; no premature redemption
Unit size	₹10,000
Minimum	2 bonds (₹20,000) at ICICI Direct; Bonds Kart shows ₹10,000 for IRFC and ₹20,000 for PFC and REC
Maximum	₹50 lakh (500 bonds)

Sources: ICICI Direct, Bonds Kart. The 2 minimums conflict, so confirm with the issuer's current application form.

Where can I buy them?

Where	What our research shows
Altifi	54EC bonds listed among its products
Aspero	54EC capital gain bond product page
Bonds Kart (JM Financial Services)	IRFC, PFC and REC listed with minimums
Digifinn	54EC bonds added at its Sep 2026 rebrand
GoldenPi	Capital gain bonds collection
HDFC Securities	Lists 54EC bonds, no details published
ICICI Direct	54EC Capital Gain Bonds under FD and Bonds, with full terms
IndiaBonds	Capital gain (54EC) bonds

Sources: Altifi, Aspero, Bonds Kart, Digifinn release, GoldenPi, HDFC Securities, ICICI Direct, IndiaBonds.

SEBI's circular of 14th Aug 2026 let OBPPs offer 54EC bonds, provided they state that grievances lie with the issuer, not SEBI, and disclose the lock-in, limits and non-transferability (SEBI circular). Its May 2026 consultation had noted that "few OBPPs are willing to offer" these bonds (SEBI consultation paper). A TradingQnA thread asking how to buy them on Zerodha has 17,675 views (TradingQnA); our research found no 54EC product on Zerodha, so check with your broker. More detail is on our 54EC bonds channel page.

What does 5.25% mean after tax?

The interest is taxable every year. On ₹20 lakh invested, interest is ₹1,05,000 a year, or ₹73,500 after tax at the 30% slab (before surcharge and cess), which is 3.675%. The benefit lies in the capital gains tax you do not pay on the amount invested; how large that is depends on your gain and its tax rate, so work it out with your CA before choosing between 54EC bonds and paying the tax.

What should I check before applying?

1. That your gain qualifies and the 6 month window is still open.
2. That the issuer's issue is open: the platforms above may list only some of the 4 issuers at any time.
3. That you are comfortable with 5 years of no liquidity, since the bonds cannot be sold, transferred or redeemed early.
4. The platform's fee, which none of the sources above discloses.