Government Bonds

8. 00% savings taxable bondsthe salient characteristics of the bondthe bonds may be held by an individual, Not being a non, Resident indian nri in his or her or in, Individual capacity an individual capacity on joint basis, Or in an individual capacity on anyone or or as, Survivor basis a proxy for a minor as father/mother/legal guardian hindu undivided family. Few points charitable institution to mean a company registered in accordance with subsection 25 hailing from the Indian region companies act 1956 or an institution which has obtained a certificate of registration as a charitable institution in alignment with a law or any, In force institution which has obtained a certificate from income tax authority meant to serve of section 80g of the income tax act, 1961. University means a university established or and includes an institution, Incorporated by a central, State or provincial act declared under section 3 of the university grants commission act, 1956 3 of 1956, To function as a university for the objectives of that act. Tax treatment i income, Tax interest on the bonds will be taxable under the income, Tax act, 1961 as applicable derived from the relevant tax status of the bond holder. Ii wealth tax the bonds will be exempt from wealth, Tax under tax act, The wealth, 1957. Minimum amount the bonds will be issued for a minimum amount of rs. 1000/, & none exists maximum limit for investment. Nominationa sole holder or a sole surviving holder of a bond, Being an individual, Either one, May nominate or additional persons who shall be entitled to the bond and the payment thereon should the situation arise of his/her death. Transferabilitythe bond offered in the format of of bond ledger account shall not be transferable. Interest payment the bond will be issued in cumulative at the, And non, Cumulative form possibility of the investor. The bond will bear interest at the frequency of 8% per annum. Interest on non, Cumulative bonds will be payable at half, Yearly intervals beginning on the date of issue. Interest on cumulative bonds will be compounded with half, Yearly rests and will become payable on maturity paired with the principal. The maturity importance of the bonds shall be rs. 1601/, Being principal and interest for every rs. 1, 000/, Interest will be paid from date of issue No more than 31st july / 31st january, As the case may be and thereafter at half, Yearly for period ending 31st july/31st january on 1st august and 1st february. The bonds shall not be tradable in the secondary market and shall not be eligible as collateral for loans financial institutions, From banks and non banking financial companies, Nbfc etc. Repayment i the bonds shall be repayable on the expiry of 6 six years from the date of issue. No interest would accrue after the maturity of the bond.