In accordance with section 54 EC of the Income Tax Act, 1961, all categories of tax payers would be eligible to save tax in respect of
long term capital gains by making investments in certain Bonds prescribed.
These bonds are classified as "long-term specified asset" and are issued by NABARD, REC, NHAI, NHB and SIDBI.
These bonds are specifically for investors who have made some long term capital gains, and would like to save capital gain taxes on
Only long term capital gains are eligible for these bonds though, and short term gains are not covered under section 54EC.
The interest from these bonds is fully taxable.