- Tax Saving Bond
- Encash Bond
- Regular Income Bond
- Money Multiplier
Bond
- Children Growth
Bond
Tax
Saving Bond
Investors can avail of
rebate under Section 88 of the Income Tax Act, 1961 by investing in
this Bond.
The proceeds from this
Bond shall be deployed towards infrastructure projects in accordance
with the Income-tax Rules.
The Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry
of Finance, Government of India has vide its letter F.NO.178/57/2000-IT(AI)
dated June 14, 2001 declared the Tax Saving Bond as eligible security
for the purpose of clause (xvi) of sub-section (2) ofSection 88 of
the Income-tax Act, 1961. The tax rebate under Section 88 can be availed
of by NRIs provided NRIs opt not to be assessed under the Special
Provision(s) of Chapter XII-A of the Income-tax Act, 1961
The investor can choose
any/all of the following options in respect of Tax Saving
Bond :
|
Option
|
I
|
II
|
III
|
| Tax Benefit under Section |
88
|
88
|
88
|
| Issue Price (Rs.) |
5,000
|
5,000
|
5,000
|
| Face Value (Rs.) |
5,000
|
6,660
|
9,000
|
| Tenure |
3 years
|
3 years
4 months
|
6 years
6 months
|
| Interest
(%) (p.a.)* |
9.00
|
DDB@
(YTM 9.0%*)
|
DDB@
(YTM 9.5%*)
|
| Interest
Payable |
Annually
|
DDB@
|
DDB@
|
| Minimum Application |
1 Bond
|
1 Bond
|
1 Bond
|
Yield to Investor(%)*>#
(Including Tax benefits) |
18.5
|
16.7
|
13.4
|
| |
|
| @ |
Tax Saving
Bond Option II & III is in the nature of Deep Discount Bond
(DDB), hence no periodic interest is payable. |
| * |
Subject
to TDS as per the then prevailing tax laws. |
| > |
The yield
has been calculated considering the tax rebate of 20% available
to the investor and assuming that a surcharge of 2% of tax is
payable in case of both the options. |
| # |
Rounded
off to nearest multiple of 0.1. |
| |
|
For Tax Benefits
under Option I (Annual Interest) :
— Please refer points 1 & 3 to 5 of II A of the Tax Benefits
— For NRIs, refer points 1 to 7 & 9 of II B of the Tax Benefits.
— For other eligible institutions, refer points 1 and 2 of II C of
the Tax Benefits.
For Tax Benefits under
Option II (in the nature of Deep Discount Bond) :
— Please refer points 1 to 5 of II A of the Tax Benefits.
— For NRIs, refer points 1 to 9 of II B of the Tax Benefits.
— For other eligible institutions, refer points 1 and 2 of II C of
the Tax Benefits.
Top
Encash
Bond
This Bond is designed to
give instant liquidity anytime after one year,across the counter,to
investors in case of need.
|
Face Value
|
: Rs 5000
|
|
Redemption
|
:At Face Value i.e.
Rs. 5000 at the end of 5 years from the Deemed Date of Allotment
|
|
Minimum
Application
|
:1Bond |
|
Interest Payment
|
:Interest will be
payable anually at the following rates:
|
|
Year
|
1st |
2nd |
3rd |
4th |
5th |
| Applicable
rate of interest for respective year (%)* |
9.00 |
9.25 |
9.50 |
10.00 |
10.50 |
| Annualized
YTM at the end of respective year (%)* # |
9.0 |
9.1 |
9.2 |
9.4 |
9.6 |
| * |
Subject to TDS as per
the then prevailing tax laws. |
| # |
Rounded off to nearest multiple of
0.1 |
Encash Bond will be allotted
only in physical mode and not in demat mode.
NRI/OCBs are not eligible
to invest in Encash Bond.
For Tax Benefits:
__ Please refer points 1, 4
& 5 of IIA of the Tax Benefits
__ For NRIs refer Points 1 to 7 of IIB of the Tax Benefits.
__ For other eligible institutions refer Points 1 and 2 of IIC of the
Tax Benefits.
Top
Regular Income
Bond
Face Value : Rs. 5,000/-
Redemption : At Face Value,
i.e., Rs. 5,000/
The investors can choose any/all
of the following options in respect of payment of interest.
| Option |
I |
II |
III |
| Minimum Application
|
3 Bonds
|
2 Bonds
|
1 Bond
|
| Tenure |
5 years
|
5 years
|
5 years
|
| Interest(%)
(p.a.)* |
9.25
|
9.50
|
9.75
|
| Interest
Payable |
Monthly
|
Half-Yearly
|
Annually
|
| Yield to
Investor (%)*# |
9.7
|
9.7
|
9.8
|
| * |
Subject to TDS as per the then prevailing
tax laws. |
# |
Rounded off to the nearest multiple of
0.1. |
For Tax
Benefits :
— Please refer points 1, 4 & 5 of II A of the Tax Benefits.
— For NRIs, refer points 1 to 7 of II B of the Tax Benefits.
— For other eligible institutions, refer points 1 and 2 of II C of the
Tax Benefits.
Top
Money Multiplier Bond
(in the nature of Deep Discount Bond)
The investors can choose any/all of the
following options:
| Option |
I |
II |
| Issue Price
(Rs.) |
5,000/-
|
5,000/-
|
| Tenure |
4 years
5 months
|
7 Years
3 months
|
| Face Value
(Rs.) |
7,475/-
|
10,000/-
|
| Minimum Application |
1 Bond
|
1 Bond
|
| Yield to
Investor (%)*# |
9.5
|
10.0
|
| * |
Subject to TDS as per the then prevailing
tax laws. |
| # |
Rounded off to the nearest multiple
of 0.1. |
For Tax Benefits
:
— Please refer points 1,2,4 & 5 of II A of the Tax Benefits
— For NRIs, refer points 1 to 8 of II B of the Tax Benefits.
— For other eligible institutions, refer points 1 and 2 of II C of
the Tax Benefits.
Top
Children
Growth Bond (in the nature of Deep Discount Bond)
This Bond has been designed
to provide for the lumpsum expenditure requirements once the child
has grown up for events such as the child's wedding, higher education
etc.
The investors can choose
either/both of the following options:
|
Option
|
I
|
II
|
|
Issue Price (Rs.)
|
5,000/-
|
5,000/-
|
|
Tenure
|
16 years 5 months
|
21 years
|
|
Face Value (Rs.)
|
25,000/-
|
40,000/-
|
|
Minimum Application
|
1 Bond
|
1 Bond
|
|
Yield to Investor(%)*#
|
10.3
|
10.4
|
| * |
Subject to TDS as per the then prevailing
tax laws. |
| # |
Rounded off to the nearest multiple
of 0.1. |
For Tax Benefits
:
— Please refer points 1,2,4 & 5 of II A of the Tax Benefits.
— For NRIs, refer points 1 to 8 of II B of the Tax Benefits.
— For other eligible institutions, refer points 1 and 2 of II C of
the Tax Benefits.
