Archive · 19 Aug 2026
Karnataka Bank Empanelled to Arrange HUDCO Capital Gain Bonds
Karnataka Bank can now help customers buy HUDCO Capital Gain Bonds.
These bonds are issued by Housing and Urban Development Corporation Limited.
They are described as government-backed investments.
Eligible taxpayers may use them to save tax on certain long-term capital gains.
The bank will collect applications and arrange subscriptions.
Customers can access the bonds through Karnataka Bank branches.
The bank also said it will provide customer-service and relationship-management support.
People interested in investing should ask their nearest branch about eligibility, limits, and terms.
Karnataka Bank has been empanelled as an Arranger and Collector for HUDCO Capital Gain Bonds.
The bonds are issued by Housing and Urban Development Corporation Limited, under Section 85 of the Income Tax Act, 2025.
The arrangement covers government-backed bonds from HUDCO, REC, PFC, and IRFC.
Eligible taxpayers can invest in the bonds to save tax on long-term capital gains.
Karnataka Bank customers can subscribe through the bank’s branches, with relationship-management and customer-service support.
- Who
- Karnataka Bank, Housing and Urban Development Corporation Limited, and eligible taxpayers.
- What
- Karnataka Bank was empanelled as an Arranger and Collector for HUDCO Capital Gain Bonds.
- When
- The announcement was published on August 19, 2026.
- Where
- Subscriptions will be available through Karnataka Bank’s branch network.
- Why
- The arrangement is intended to help eligible taxpayers invest in government-backed bonds while saving tax on long-term capital gains.
- Role
- Karnataka Bank is an empanelled Arranger and Collector.
- Bond issuer
- Housing and Urban Development Corporation Limited (HUDCO).
- Other issuers mentioned
- Rural Electrification Corporation (REC), Power Finance Corporation (PFC), and Indian Railway Finance Corporation (IRFC).
- Tax provision
- The statement refers to Section 85 of the Income Tax Act, 2025, formerly Section 54EC of the Income Tax Act, 1961.
- Investor benefit
- Eligible taxpayers may save tax on long-term capital gains.
- Access
- Customers can subscribe through Karnataka Bank branches.
- Further details
- Branches can provide information on eligibility, investment limits, subscription procedures, and applicable terms.