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  1. Tax Saving Bond
  2. Regular Income Bond

Tax Saving Bond

The investor can choose any/all of the following options in respect of Tax Saving Bond :

Option
I
II
III
IV
Tax Benefit under Section
88
88
88
88
Issue Price (Rs.)
5,000
5,000
5,000
5,000
Face Value (Rs.)
5,000
6,200
5,000
7,050
Tenure
3 years
3 Years 4 Months
5 Years
5 Years 4 Months
Interest (%) (p.a.)*
6.75
DDB@(YTM 6.7 %)
6.75
DDB@(YTM 6.7 %)
Interest Payable
Annually
DDB@
Annually
DDB@
Yield to Investor (%) * + # (Including Tax Benefits) 13.5 12.3 11.0 10.1
Interest Payment Dates May 01 DDB@ May 01 DDB@
Redemption date
April 03, 2006
August 03, 2006
April 03, 2008
August 03, 2008
   
@ Tax Saving Bond Options II and IV are 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 15% available to the investor and assuming that a surcharge of 5% of tax is payable in case of all the options
# Rounded off to nearest multiple of 0.1.

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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
Issue Price (Rs.)
5000/-
Face Value (Rs.) 5000/-
Tenure
7 years
Interest (%) (p.a.)*
6.75
Interest Payable
Annually
Yield to Investor (%)*# 6.8
Interest Payment Dates May 01
Redemption date
April 03, 2010
* Subject to TDS as per the then prevailing tax laws.
# Rounded off to the nearest multiple of 0.1.

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