Skip to main content

New Savings Bonds

Government of India has announced to launch of 7.75% Savings (Taxable) Bonds, 2018 commencing from 10th January 2018 to enable resident citizens/HUF to invest in a taxable bond, without any monetary ceiling. The main features of the Bonds are:
(i) Who can invest: The Bonds are open to investment by individuals (including Joint
Holdings) and Hindu Undivided Families. NRIs are not eligible for making investments in these Bonds.

(ii) Subscription: Applications for the Bonds in the form of Bond Ledger Account will be received in the designated branches of agency banks and SHCIL in all numbering about 1600.

(iii) Issue Price:  The Bonds will be issued at par i.e. at Rs.100.00

The Bonds will be issued for a minimum amount of Rs.1,000/- (face value) and in multiples thereof. Accordingly, the issue price, will be Rs.1,000/- for every Rs.1,000/- (Nominal).

The Bonds will be issued in demat form (Bond Ledger Account) only.

(iv) Period: The Bonds will be on tap till  further notice and issued in cumulative and non-cumulative forms.

(v) Limit of investment: There will be no maximum limit for investment in the Bonds.

(vi) Tax treatment: Interest on the Bonds will be taxable under the Income-tax Act, 1961 as applicable according to the relevant tax status of the bond holder.

(vii) Maturity and rate of interest: The Bonds will have a maturity of 7 years carrying interest at 7.75% per annum payable half- yearly.  The cumulative value of Rs. 1,000/- at the end of seven years will be Rs. 1,703.

(viii) Transferability: The Bonds are not transferable.

The Bonds are not tradeable in the Secondary market and are not eligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions.
(ix) Nomination: A sole holder or a sole surviving holder of a Bond, being an individual, can make a nomination.
Labels:

Comments

Post a Comment

Popular posts from this blog

Jaina Philosophy: Substance

Post a Comment
Read more

[9/11] Left Wing Extremism: What more can be done?

Naxalism is not merely a law and order issue. To truly eliminate naxalism, we must undercut its raison d’être, its reason for existence. While the methods of Naxalites may be abhorrent, most of their goals (apart from overthrowing the government) are not. The government must fulfil these goals for them so that they have nothing to fight for. The government must adopt a multipronged composite strategy. We can broadly divide the strategy as follows: Development strategy: Better infrastructure in core naxal areas Special focus on political security and accelerated socio economic development in a holistic manner Political parties must strengthen their cadre base in naxal areas Decentralisation and participative democracy Better implementation of government schemes Security strategy Promote local resistance groups on lines on ‘village defence committees’ in J&K Formation of specially trained special...
Post a Comment
Read more

[10/11] Left Wing Extremism

Current Situation As of February 2016, 106 districts in 10 States have been identified by the Government of India as Left Wing Extremism (LWE) affected districts in the country and 35 Most affected LWE districts. With established base areas in Dantewada and Bastar districts of Chhattisgarh, the movement has shown no signs of abating there. 12,000 firearms, and an unarmed cadre strength of nearly 200,000. Govt. estimates of Maoist forces : 15000-20000 army, atleast  40% of them are women ; avg. age in high teens and low twenties. Various estimates suggest Maoist rebels could number up to 40,000. Of these, thousands may be armed with weapons ranging from AK-47s to light machine-guns raided from police stations or bought from dealers in Nepal. The cadre mostly comprises farmers, landless labourers, tribals and the extremely poor, including women and children. Naxalites have been a strain on the country’s security forces and a barrier to deve...
Post a Comment
Read more