About SUGAM REC App:
- It is exclusively for current and future investors in REC’s 54EC Capital Gain Tax Exemption Bonds.
- Investors will be able to download their e-bond certificates, apply for fresh investment, download important forms related to updating of KYC, and also connect with REC’s Investor Cell via call / email / WhatsApp.
What are 54EC bonds?
- These are also known as Capital gain bonds are fixed income instruments which provide capital gains tax exemption under section 54EC to the investors.
- These bonds allow an assessee/investor to save income tax on long-term capital gain by investing the gains.
- The investment into these bonds has to be made within 6 months from the date of long-term capital gain.
- They have a fixed lock-in period of 5 years and can be either held in Physical or Demat form.
- They are issued by various institutions managed by the Government of India to finance specific capital projects.
- They are called 54EC bonds because the taxability benefits of these bonds are mentioned under section 54EC of the Income Tax Act, 1961.
Key facts about REC Limited
- It is a 'Maharatna' company (under the administrative control of the Ministry of Power, Government of India.
- It is registered with RBI as non-banking finance company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC).
- It was incorporated in 1969 in the backdrop of severe drought and famine in the country, to energise agricultural pump-sets for irrigation purposes, thereby reducing the dependency of agriculture on monsoons.
- It provides long terms loans and other financing products to State, Centre and Private Companies for creation of infrastructure assets in the country.
- It has been associated as nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY) and National Electricity Fund (NEF) Scheme.
