• Tax Saving Bond
• Encash Bond
• Regular Income Bond
• Money Multiplier Bond
• Children Growth Bond
• Floating Rate 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.178/19/2000-IT(AI) dated June 14, 2001 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 investor can choose any/all of the following options in respect of Tax Saving Bond :

@ 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.

>The yield has been calculated considering the tax rebate of 20% available to the investor and assuming that a surcharge of 2% of tax is payable in case of both the options.

# Rounded off to nearest multiple of 0.1.

For Tax Benefits under Option I (Annual Interest) :

— Please refer points 1 & 3 to 5 of II A of the Tax Benefits

— For NRIs, refer points 1 to 7 & 9 of II B of the Tax Benefits.

— For other eligible institutions, refer points 1 and 2 of II C of the Tax Benefits.

For Tax Benefits under Option II (in the nature of Deep Discount Bond) :

— Please refer points 1 to 5 of II A of the Tax Benefits.

— For NRIs, refer points 1 to 9 of II B of the Tax Benefits.

— For other eligible institutions, refer points 1 and 2 of II C of the Tax Benefits.

Encash Bond

This Bond is designed to give instant liquidity anytime after one year,across the counter,to investors in case of need.

Face Value : Rs 5000

Redemption :At Face Value i.e. Rs. 5000 at the end of 5 years from the Deemed Date of Allotment

Minimum Application :1Bond

Interest Payment :Interest will be payable anually at the following rates:

* Subject to TDS as per the then prevailing tax laws.

# Rounded off to nearest multiple of 0.1 Encash Bond will be allotted only in physical mode and not in demat mode.

NRI/OCBs are not eligible to invest in Encash Bond.

For Tax Benefits:

__ Please refer points 1, 4 & 5 of IIA of the Tax Benefits(see overleaf).

__ For NRIs refer Points 1 to 7 of IIB of the Tax Benefits.

__ For other eligible institutions refer Points 1 and 2 of IIC of the Tax Benefits.

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.

* 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.

Money Multiplier Bond(in the nature of Deep Discount Bond)

The investors can choose either/both of the following options:

* 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.

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:

* 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.

Floating Rate Bond

This Bond is designed to provide returns to the investors linked to the yields on Government of India securities along with early redemption options.

Face Value : Rs.5,000

Minimum Application : 1 Bond

Redemption At Face Value at the end of 6 years from the Deemed Date of Allotment. Interest * (p.a.) : 8.90%* for first two Interest Payment Periods 1.50% over the Benchmark Rate on December 1,2003 for the next two Interest Payment Periods 1.50% over the Benchmark Rate on December 1,2005 for the final two Interest Payment Periods

Benchmark Rate : Average of annualised yields on Government of India Securities with a residual maturiaty of two years for the previous 15 working days

Maximum Intrest * (p.a.) : 8.90%

Early Redemption Option : On February 1, 2004 and February 1, 2006

*Subject to TDS as per the then prevailing tax laws.

Floating Rate Bond would be alloted only in physical mode and not in the demat mode. NRIs/OCBs are not eligible to invest in Floating Rate bond.

For Tax Benefits :

— Please refer points 1, 4 & 5 of II A of the Tax Benefits. (see overleaf).

— for NRIs, refer points 1 to 7 of II B of the Tax Benefits.

— for other eligible institutions, refer points 1 & 2 of II C of the Tax Benefits.