The National Highways Authority of India (NHAI) on Wednesday said it has reduced the coupon rate on capital gains tax exemption bonds from 6 percent per annum to 5. 25 percent per annum.
"NHAI has been issuing long term capital gain tax exemption bonds under section 54 EC of Income Tax Act 1961.
The applicable rate of interest for bond series has been amended with effect from December 1, " as per an official release.
Coupon rate is the rate of interest paid by bond issuers on the bond's face value.
It is the periodic rate of interest paid by bond issuers to its purchasers.