Delhi, 10 July (H.S.): The Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has classified bonds issued by the Indian Renewable Energy Development Agency Ltd. (IREDA) as a ‘long-term specified asset’ under section 54EC of the Income-tax Act, 1961, effective July 9, 2025. Bonds issued by IREDA on or after this date and redeemable after five years will qualify for tax exemptions on capital gains under section 54EC. Proceeds from these bonds must be used solely for renewable energy projects that can service debt through their revenues, independent of State Government support.

Investors can claim a tax exemption on Long Term Capital Gains (LTCG) up to Rs. 50 Lakhs per financial year by investing in these bonds. This development will lower IREDA’s cost of funds and significantly benefit the renewable energy sector, promoting accelerated growth. IREDA’s Chairman Pradip Kumar Das, expressed gratitude for this initiative, emphasizing its potential to attract more investors and strengthen the renewable energy financing ecosystem in India, supporting the 500 GW non-fossil fuel target by 2030.

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Hindusthan Samachar / Jun Sarkar