Capital Gains Bond, also known as Sec 54 EC Bonds, are a type of investment instrument authorized by the Income Tax Act, 1961.These bonds provide an opportunity for individuals to save on long-term capital gains taxes incurred from the sale of property or assets.

Investment Objective: The primary objective of Capital Gain Bonds is to provide investors with a tax-efficient way to reinvest the proceeds from the sale of certain capital assets, such as real estate or stocks, and defer capital gains tax liabilities.

Issuance by Government or Approved Entities: Capital Gain Bonds are usually issued by government entities or institutions approved by the government. These bonds typically have a fixed tenure and offer a specified rate of interest.