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.
Save Tax under Section 88. Earn 10.50%** p.a. for 3 years (Option I)
OR
Invest up to Rs. 80,000/- and Save Tax under Section 88 (Option I &II)
| 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 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.
Regular Income Bond
Monthly Income Plan : Earn 10.75%* p.a. payable monthly for 5 years (Option I)
OR
Earn 11.40%* 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> | 11.00 | 11.40 |
| Interest Payable | Monthly | Half-Yearly | Annually |
| Yield to Investor (%)*# | 11.3 | 11.3 | 11.4 |
* Subject to TDS as per the then prevailing tax laws.
# Rounded off to nearest multiple of 0.1
Money Multiplier Bond (in the nature of Deep Discount Bond)
No Early Recall
Rs. 5,000/- becomes Rs.50,000/-* in 21 years 3 months (Option V)
OR
Rs. 5,000/- becomes Rs.25,000/-* in 15 years (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 | V |
|---|---|---|---|---|---|
| Issue Price (Rs.) | 5,000/- | 5,000/- | 5,000/- | 5,000/- | 5,000/- |
| Tenure | 3 years 10 months | 6 years 6 months | 10 years 3 months | 15 years | 21 years 3 months |
| Face Value (Rs.) | 7,475/- | 10,000/- | 15,000/- | 25,000/- | 50,000/- |
| Minimum Application | 1 Bond | 1 Bond | 1 Bond | 1 Bond | 1 Bond |
| Yield to Investor (%)*# | 11.1 | 11.3 | 11.3 | 11.3 | 11.4 |
* Subject to TDS as per the then prevailing tax laws..
# Rounded off to nearest multiple of 0.1
¥ 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
