|Maturity Period||6 years|
|Rate of Interest||8.0% per annum (Taxable)|
|Risk Attached||Low Risk|
|Minimum Investment||Rs. 1,000/-|
|Maximum Investment||Unlimited in multiples of Rs.1,000/-|
|Overall Liquidity||Not tradable|
|Date of Issue||Date of realization of the funds|
a) Non-cumulative (half yearly): Interest to the holders opting for non-cumulative bonds will be paid from date of issue up to 31st July/31st January as the case may be and thereafter half yearly for period ending 30th June /31st December on 1st August and 1st February.
b) Cumulative: Interest at the rate of 8% per annum compounded with half yearly rests and will be paid to the investor on maturity along with principal. (the maturity value of the bonds shall be Rs 1601.00/- for every Rs1000/-) (subject to TDS as applicable).
a) Interest on the Bond will be taxable under Income-Tax Act,1961.
b) The bonds will be exempt from Wealth-Tax under the Wealth-Tax Act, 1957.
The main features of these bonds are as follows:
As an individual;
Who is not a Non-resident Indian
In his or her individual capacity or
On joint basis, or
Anyone or survivor basis, or
On behalf of a minor as father/mother/legal guardian.
As a Hindu Undivided Family
As an Institution 'Charitable Insititution' under section 25 of the Indian Companies Act 1956. Institution obtained Certificate Of Registration as charitable institution.
Any Institution which obtained certificate from Income Tax Authority
U/S 80G of Income Tax Act ,1961.
"UNIVERSITY" established or incorporated by Central, State or Provincial Act, U/S 3 of University Grants Commission Act, 1956 (3 of 1956).