Karnataka Bank empanelled as arranger for HUDCO capital gain bonds

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Karnataka Bank said on Wednesday that it has been empanelled as an arranger and collector for Housing and Urban Development Corporation Limited (HUDCO) capital gain bonds.

With this, the bank joins a select group of arrangers facilitating investments in government-backed capital gain bonds issued by HUDCO, REC Ltd., Power Finance Corporation (PFC), and Indian Railway Finance Corporation (IRFC) under Section 85 of the Income Tax Act, 2025 (formerly Section 54EC of the Income Tax Act, 1961).

Capital gain bonds offer eligible taxpayers an opportunity to save tax on long-term capital gains while investing in secure, government-backed instruments. Through this arrangement, Karnataka Bank customers can subscribe to HUDCO capital gain bonds across the bank’s branch network.

The addition of HUDCO capital gain bonds further strengthens the bank’s investment offerings, reflecting its focus on financial products tailored to retail and institutional customers.

Customers can visit their nearest Karnataka Bank branch for detailed information on eligibility, investment limits, the subscription process, and applicable terms and conditions, a release from the bank said.

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