- TAX SAVING BOND
- REGULAR INCOME BOND
- MONEY MULTIPLIER
BOND
- PENSION 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 August 17, 2000 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 investors can choose either/both
of the following options in respect of Tax Saving Bond:
| Option |
I |
II |
| Tax Benefit
under Section |
88 |
88 |
| Issue
Price (Rs.) |
5,000/- |
5,000/- |
| Face Value(Rs.) |
5,000/- |
7,000/- |
| Tenure |
3
years |
3
years 4 months |
| Interest(%)
(p.a.)* |
10.50 |
DDB@
(YTM 10.6%) |
| Interest
Payable |
Annually |
DDB@ |
| Minimum
Application |
1
Bond |
1
Bond |
Yield
to Investor (%)*#%
(Including Tax Benefits) |
21.7
|
19.7
|
| @ |
Tax Saving Bond Option II 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. |
| # |
It has been assumed that a surcharge
of 15% of tax is payable in case of both the options. |
% |
Rounded off to nearest multiple of 0.1 |
| ¥ |
ICICI Bank would ensure full and firm allotment
against all valid applications for the Tax Saving Bond. |
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Regular Income Bond
Monthly Income Plan : Earn
10.75%* p.a. payable monthly for 5 years (Option I)
OR
Earn 11.50%* p.a. for 5 years (Option III)
Choose any/all of the following
options:
| Option |
I |
II |
III |
| Issue Price/Face
Value (Rs.) |
5,000/- |
5,000/-
|
5,000/- |
| Minimum
Application |
3 Bonds
|
2 Bonds
|
1 Bond
|
| Tenure |
5 years
|
5 years
|
5 years
|
| Interest(%)
(p.a.)* |
10.75
|
11.10
|
11.50
|
| Interest
Payable |
Monthly
|
Half-Yearly
|
Annually
|
| Yield to
Investor (%)*# |
11.3
|
11.4
|
11.5
|
| * |
Subject to TDS as per the then prevailing
tax laws.. |
# |
Rounded off to nearest multiple of 0.1 |
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Money
Multiplier Bond (in the nature of Deep Discount Bond)
No Put/Call Option
Rs. 5,000/- becomes Rs.50,000/-* in 21 years 5 months (Option IV)
OR
Rs. 5,000/- becomes Rs.15,000/-* in 10 years 3 months (Option III)
OR
Rs. 5,000/- becomes Rs.10,000/-* in 6 years 6 months (Option II)
OR
Rs. 5,000/- becomes Rs.7,475/-* in 3 years 10 months (Option I)
Choose any/all of the following options:
| Option |
I |
II |
III |
IV |
| Issue Price
(Rs.) |
5,000/-
|
5,000/-
|
5,000/- |
5,000/- |
| Tenure |
3 years 10 months
|
6 years 6 months
|
10 years 3 months |
21 years 5 months |
| Face Value
(Rs.) |
7,475/-
|
10,000/-
|
15,000/- |
50,000/- |
| Minimum
Application |
1 Bond
|
1 Bond
|
1 Bond |
1 Bond |
| Yield to
Investor (%)*# |
11.1
|
11.3
|
11.3 |
11.3 |
| * |
Subject to TDS as per the
then prevailing tax laws.. |
| # |
Rounded off to nearest multiple of 0.1 |
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Pension
Bond
No Put/Call Option
Invest Rs. 20,000/- and receive Rs. 660/-* per month for 12 years (Option
III)
OR
Save for your retirement and receive Rs. 440/-* per month for 12 years
(Option II)
OR
Get Monthly Pension for 12 years after wait period of 4, 6 & 10
years (Options I, II & III)
| Option |
I |
II |
III |
| Issue
Price (Rs.) |
5,000/-
|
5,000/-
|
5,000/- |
| Minimum
Application |
4 Bonds |
4 Bonds |
4 Bonds |
| Tenure |
16 years
|
18 years
|
22 years |
| Wait Period
|
4 years |
6 years |
10 years |
| Pension
Period |
12 years |
12 years |
12 years |
| Pension
per Bond (Rs.)* @ |
90
|
110
|
165 |
| Pension
per set of 4 Bonds (Rs.)* @ |
360
|
440
|
660 |
| Yield
to Investor (%)*# |
10.6
|
10.6
|
10.6 |
| Frequency
of pension payment |
Monthly |
Monthly |
Monthly |
| * |
Interest component subject
to TDS as per the then prevailing tax laws. |
| @ |
Includes part principal repaid. For
break-up, please see the table on "Break-up of Interest and Principal
component in each Pension Payment per Bond" below |
| # |
Rounded off to nearest multiple of
0.1 |
Break-up of Interest and Principal component
in each Pension Payment per Bond
| Option |
I |
II |
III |
| Principal component till
2nd last pension payment (Rs.) |
34.50
|
34.50
|
34.50
|
| Interest component till
2nd last pension payment (Rs.)* |
55.50
|
75.50
|
130.50
|
| Principal component for
last pension payment (Rs.) |
66.50
|
66.50
|
66.50
|
| Interest component for
last pension payment (Rs.)* |
23.50
|
43.50
|
98.50
|
* Subject to TDS as per the then prevailing
tax laws.
¥ Regular Income Bond, Money Multiplier
Bond and Pension Bond : Preference in allotment, up to 70 percent of
the Issue size, after allotment of Tax Saving Bond, for applications
for up to a total of 50 Bonds (not including Tax Saving Bond) by Individuals,
Minors and Kartas of HUFs.
¥ Regular Income Bond, Money Multiplier Bond and Pension Bond :
Preference in allotment, up to 67 percent of the balance of the Issue
size, after allotment of Tax Saving Bond and preferential allotment
as above, for applications by private/public religious/charitable trusts
and any other investors requiring approved security status for making
investments.
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