Major Boost for Green Finance: IREDA Bonds Get Section 54EC Tax-Exempt Status
Major Boost for Green Finance: IREDA Bonds Get Section 54EC Tax-Exempt Status In a welcome policy move, the Central Board of Direct Taxes (CBDT) has notified that bonds issued by the Indian Renewable Energy Development Agency Ltd. (IREDA) are now recognized as “long-term specified assets” under Section 54EC of the Income Tax Act, 1961 . 📅 Effective from: July 9, 2025 This means investors can now claim Long-Term Capital Gains (LTCG) tax exemption —up to ₹50 lakh per financial year—by investing in IREDA bonds, which are redeemable after 5 years. Why This Matters: Provides a strong tax-saving incentive for investors. Ensures lower cost of funds for IREDA. Directs capital towards revenue-generating renewable energy projects . Aligns with India’s bold target of 500 GW non-fossil fuel capacity by 2030 . This is not just a fiscal policy update—it’s a clear alignment of financial instruments with sustainability goals. Such policy recognitions pave the way for wi...