+
CBDT Notifies IREDA Bonds as Tax-Saving Option for Green Energy
POWER & RENEWABLE ENERGY

CBDT Notifies IREDA Bonds as Tax-Saving Option for Green Energy

In a significant step to enhance renewable energy financing in India, the Central Board of Direct Taxes (CBDT), operating under the Ministry of Finance, announced that bonds issued by the Indian Renewable Energy Development Agency Ltd. (IREDA) would be classified as 'long-term specified assets' under Section 54EC of the Income-tax Act, 1961.

The notification, which took effect on July 9, 2025, enables investors to claim tax exemptions on long-term capital gains by investing in IREDA bonds. As per Section 54EC, individuals can invest up to ₹50 lakh in these bonds within six months of realizing capital gains and receive a full exemption on the taxable amount.

These bonds will carry a lock-in period of five years and will be redeemable thereafter. The funds raised through this mechanism will be exclusively directed toward self-sustaining renewable energy projects that do not require financial support from state governments.

Pradip Kumar Das, Chairman and Managing Director of IREDA, stated that the government’s recognition underscored the agency’s key role in driving renewable energy financing in India. He noted that the tax-exempt status of IREDA bonds would create a more appealing investment channel for individuals while simultaneously increasing capital availability for clean energy initiatives. Das also highlighted that this development aligned with India’s broader objective of reaching 500 GW of non-fossil fuel energy capacity by 2030.

As a public sector enterprise under the Ministry of New and Renewable Energy, IREDA plays a central role in funding sustainable energy projects across the country. The move is expected to attract a wider base of investors, lower borrowing costs, and provide critical momentum to India's clean energy transition, thereby supporting its global climate commitments.
News source: The News Indian Express

In a significant step to enhance renewable energy financing in India, the Central Board of Direct Taxes (CBDT), operating under the Ministry of Finance, announced that bonds issued by the Indian Renewable Energy Development Agency Ltd. (IREDA) would be classified as 'long-term specified assets' under Section 54EC of the Income-tax Act, 1961.The notification, which took effect on July 9, 2025, enables investors to claim tax exemptions on long-term capital gains by investing in IREDA bonds. As per Section 54EC, individuals can invest up to ₹50 lakh in these bonds within six months of realizing capital gains and receive a full exemption on the taxable amount.These bonds will carry a lock-in period of five years and will be redeemable thereafter. The funds raised through this mechanism will be exclusively directed toward self-sustaining renewable energy projects that do not require financial support from state governments.Pradip Kumar Das, Chairman and Managing Director of IREDA, stated that the government’s recognition underscored the agency’s key role in driving renewable energy financing in India. He noted that the tax-exempt status of IREDA bonds would create a more appealing investment channel for individuals while simultaneously increasing capital availability for clean energy initiatives. Das also highlighted that this development aligned with India’s broader objective of reaching 500 GW of non-fossil fuel energy capacity by 2030.As a public sector enterprise under the Ministry of New and Renewable Energy, IREDA plays a central role in funding sustainable energy projects across the country. The move is expected to attract a wider base of investors, lower borrowing costs, and provide critical momentum to India's clean energy transition, thereby supporting its global climate commitments.News source: The News Indian Express

Next Story
Real Estate

CHB Plans Sector 54 Housing, Sector 53 Still Stalled

The Chandigarh Housing Board (CHB) is set to launch a new residential project in Sector 54, marking a revival after years of dormancy. Around 32 acres have been earmarked for the development, with 14 acres already under CHB’s control. The remaining 18 acres are expected to be transferred soon by the estate office and engineering department. Planning and design work is anticipated to conclude within the next four to six months.Initial estimates indicate the development of approximately 1,700 flats on this parcel. This follows a recent meeting chaired by the UT administrator where the Sector 5..

Next Story
Real Estate

Lohia Worldspace to Invest Rs 2 Billion in Moradabad Villas

Lohia Worldspace, the real estate arm of Delhi-based Lohia Global, will invest approximately Rs 2 billion to develop a 10-acre premium housing project in Moradabad, Uttar Pradesh, marking its formal entry into the real estate sector.This maiden venture will comprise 175 luxury villas and is expected to be delivered by 2029.Lohia Global, a privately held diversified group established in 1979, operates across four sectors — handicraft exports, electric vehicles, tiles, and solar energy — with an annual turnover of around Rs 12 billion.Now entering real estate, the group aims to monetise its ..

Next Story
Real Estate

MHADA Offers 5,285 Flats, 77 Plots Via Online Lottery

A total of 5,285 flats and 77 plots will be offered through a lottery draw by the Konkan Board of the Maharashtra Housing and Area Development Authority (MHADA) across Vasai, Thane, Kulgaon, Badlapur, and Sindhudurg. The computerised lottery will be held at Dr Kashinath Ghanekar Auditorium in Thane on 3 September, following a 'Go-Live' ceremony scheduled for Monday.Online registrations and applications will open at 1pm on Monday. The housing options are divided into several schemes: 565 flats under the 20 per cent Inclusive Housing Scheme, 3,002 flats under the 15 per cent Integrated Urban Hou..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?