|
- Tax Saving Bond
- Regular Income Bond
- Money Multiplier
Bond
- Children Growth 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
Sec |
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 boththe options. |
% |
Rounded off to nearest multiple of 0.1 |
Tax Benefits under Option I (Annual
Interest)
Please refer points 1, 4, 5 & 6 & 7of II A of the Tax Benefits
on page 24.
For NRIs, refer points 1 to 7,10 & 11 of II B of the Tax Benefits.
For other eligible institutions, refer points 1 and 2 of II C of the
Tax Benefits.
Tax Benefits under Option II (in
the nature of Deep Discount Bond)
Please refer points 1, 2, 4, 5 & 6 & 7 of II A
of the Tax Benefits
For NRIs, refer points 1 to 8,10 & 11 of II B of the Tax Benefits
For other eligible institutions, refer points 1 and 2 of II C 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.)* |
10.75
|
11.10
|
11.50
|
| Interest
Payable |
Monthly
|
Half-Yearly
|
Annually
|
| Yield to
Investor (%)*# |
11.0
|
11.0
|
11.0
|
| * |
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, 4, 6 & 7 of II A of the Tax Benefits (see
overleaf).
For NRIs, refer points 1 to 7 & 10 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 either/both of the
following options:
| Option |
I |
II |
| Issue Price
(Rs.) |
5,000/-
|
5,000/-
|
| Tenure |
3 years
10 months
|
6 Years
6 months
|
| Face Value
(Rs.) |
7,475/-
|
10,000/-
|
| Minimum
Application |
1 Bond
|
1 Bond
|
| Yield to
Investor (%)*# |
11.1
|
11.3
|
| * |
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 1,2,4,6 & 7of II A of the Tax Benefits (see
overleaf).
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 (as per the table below) in respect of the
Children Growth Bond:
|
Option
|
I
|
II
|
|
Issue Price (Rs.)
|
5,000/-
|
5,000/-
|
|
Tenure
|
3 years
10 months
|
3 years
10 months
|
|
Face Value (Rs.)
|
30,000/-
|
40,000/-
|
|
Minimum Application
|
1 Bond
|
1 Bond
|
|
Yield to Investor(%)*#
|
11.3
|
11.3
|
| * |
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 1,2,4,6 & 7of II A of the Tax Benefits (see
overleaf).
For NRIs, refer points 1 to 8 & 10 of II B of the Tax Benefits.
For other eligible institutions, refer points 1 and 2 of II C of
the Tax Benefits.
Top
Pension
Bond
The monthly pension would comprise interest
and principal repayments in form of Annuity. There shall be no repayment
of lumpsum principal at the time of maturity of the Bond.
|
Option
|
I
|
II
|
III
|
| Issue Price (Rs.) |
5,000/-
|
5,000/-
|
5,000/-
|
| Minimum Application |
4 Bonds
|
4 Bonds
|
4 Bonds
|
| Tenure |
11 years
|
15 years
|
18 years
|
| Wait Period |
1year
|
5 years
|
8 years
|
| Pension Period |
10 years
|
10 years
|
10 years
|
| Pension per bond (Rs.)*@ |
73
|
110
|
150
|
| Pension per set
of 4 Bonds (Rs.)*@ |
292
|
440
|
600
|
| Yield to Investor(%)*# |
10.5
|
10.6
|
10.7
|
| 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 in each Pension Payment per Bond below.
|
|
#
|
Rounded of to the
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.) |
41.50
|
41.50
|
41.50
|
| Interest component
till 2nd last pension payment (Rs.)* |
31.50
|
68.50
|
108.50
|
| Total pension till
2nd last pension payment (Rs.) |
73.00
|
110.00
|
150.00
|
| Principal component
for last pension payment (Rs.) |
61.50
|
61.50
|
61.50
|
| Interest component
for last pension payment (Rs.) * |
11.50
|
48.50
|
88.50
|
| Total pension for
last pension payment (Rs.) |
73.00
|
110.00
|
150.00
|
* Subject to TDS as per the then prevailing
tax laws.
Taxation
No interest accrues during the wait period and hence no tax liability
arises during that period. Only the interest portion of the pension
payment is taxable, therefore tax deduction at source, if any, shall
also be made on this portion only.
For Tax Benefits :
Please refer points 1, 3, 4, 6 & 7 of II A of the Tax Benefits
(see overleaf).
For NRIs, refer points 1 to 7, 9 & 10 of II B of the Tax Benefits.
For other eligible institutions, refer points 1 and 2 of II C of
the Tax Benefits.
Top
Regular Income Bond and
Money Multiplier 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 and Money Multiplier
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.
|
