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Govt grants Section 54EC tax benefit to IREDA bonds

  • IREDA-issued bonds qualify for tax exemption benefits under Section 54EC, allowing capital gains tax exemption on investments in specified bonds.
  • Proceeds from these bonds will be used solely for renewable energy projects capable of debt servicing through project revenues.
  • Investors can save tax on long-term capital gains up to ₹50 lakhs per financial year.
  • This development benefits the renewable energy sector by providing lower cost of funds to IREDA, supporting rapid growth in the renewable energy industry.

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