CS Executive · Tax Laws and Practice · Capital Gains
Which bond qualifies as a 'long-term specified asset' under Section 85 of the Income-tax Act, 2025?
An NHAI or REC bond redeemable after five years and issued on or after 1 April 2018 qualifies, as does any other bond notified by the Central Government. Shorter-maturity bonds, earlier issues or private company debentures do not meet Section 85(6).
- AA bond of NHAI, redeemable after five years and issued on or after 1 April 2018Correct
- BA bond of NHAI redeemable after three years, issued in 2020
- CAny debenture of a listed private company redeemable after ten years
- DA bond of REC issued before 1 April 2018
Explanation
Section 85(6) requires a bond redeemable after five years, issued on or after 1 April 2018, by NHAI or REC, or any other bond notified by the Central Government. Three-year redemption, private company debentures and pre-2018 issue fail these conditions.
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