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- Tax
Saving 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
|
6,250
|
5000/-
|
7250/-
|
| Tenure |
3
years
|
3
years 4 months
|
5
years
|
5
years 4 months
|
| Interest
(%) (p.a.)* |
7.00
|
DDB@(YTM
6.9 %)
|
7.25
|
DDB@(YTM
7.2 %)
|
| Interest
Payable |
Annually
|
DDB@
|
Annually
|
DDB@
|
| Yield
to Investor (%) * + # (Including Tax Benefits) |
13.8 |
12.6 |
11.6 |
10.7 |
| Interest
Payment Dates |
March
01 |
DDB@ |
March
01 |
DDB@ |
| Redemption
date |
February
26, 2006
|
June
26, 2006
|
February
26, 2008
|
June
26, 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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