"PFC is expected to get good fund flow from 54EC bonds in the remaining part of this fiscal and achieve over 25 per cent growth in this entire fiscal," the source said.
Under Section 54EC of the Income Tax Act, investors can invest up to Rs 50 lakh of long-term capital gains in these bonds.
The investors get six months after the sale of any asset to invest in these 54EC bonds, also called long-term capital gain bonds.
The investor gets tax benefit on long-term capital gains through investment in 54EC bonds, which are also secure in nature.
PFC got permission to raise funds for 54EC bonds in July 2017.
The company raised Rs 290 crore from these bonds in 2017-18, Rs 490 crore in 2018-19 and Rs 1,100 crore subsequently in 2019-20, showing a three-fold jump in three years.
The total market size of long-term capital gain bonds was around Rs 12,000 crore in 2019-20.
There are four players in the long-term capital gain bonds market -- PFC, REC, NHAI and IRFC.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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