Income Tax: Investment in Specified Bonds of IREDA Eligible for Exemption u/s 54EC

Income Tax: Investment in Specified Bonds of IREDA Eligible for Exemption u/s 54EC

The Central Board of Direct Taxes (CBDT) has issued a notification regarding the investment made in specified bonds of IREDA. As per the notification, the central government is announcing that the bonds issued by the Indian Renewable Energy Development Agency (IREDA) on or after the July 9, 2025, which are redeemable after five years, will now be considered as ‘long-term specified assets‘ under section 54EC of the Income-tax Act, 1961. Therefore, taxpayers investing in these specified bonds of IREDA can claim exemption under the said section.

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However, IREDA must use the bond funds only for renewable energy projects that can pay back the debt from the project revenues without relying on the state government.

Refer to the official notification for more information.