National Housing Bank Tax Free Bond Mar 2014

National Housing Bank [NHB] Tax Free Bond Mar 2014 Interest rate up to 8.93% Pre tax Interest rate 12.92%

 National Housing Bank Tax Free Bond Mar 2014

Company Profile

National Housing Bank (NHB) was established under the Act of Parliament viz, NHB Act in 1988 to operate as a principal agency to promote housing finance institutions both at local and regional ) operative Sector are the primary agencies for the development and expansion of the housing finance market in India. In future, NHB endeavours to continue to support a healthy housing finance sector in the country and realize their goal of affordable housing for all.Functions of NHB may be broadly classified as follows:

–  Regulatory and Supervision :- NHB regulates and supervises the activities of HFCs in accordance with the provisions of the NHB Act.
–  Financing : NHB provides financial assistance to PLIs by way of refinance for development and expansion of housing finance market in India. NHB also provides direct finance to public agencies, private agencies in PPP mode for the provision of affordable and low cost housing in the country. NHB is a significant provider of developmental finance towards affordable housing in the country. NHB is focused on the holistic development of the housing finance market in the country.
– Promotion and Development: NHB plays the role of a facilitator to promote and develop HFC’s to improve/ strengthen the credit delivery network for housing finance in the country. NHB have been promoting inclusive expansion and stability in the housing finance market.

NHB has played a central nodal role in implementing various schemes of the GoI under its initiative of “Affordable Housing for All”.

NHB Tax Free Bond Mar 2014 Details

Particulars
National Housing Bank TAX FREE BONDS
Issue SizeRs. 250 Cr (Base Issue Size) with option to retain oversubscription upto residual
shelf limit (being Rs. 1000 Cr)
Issue Opening Date7th March 2014
Issue Closing Date18th March 2014
RatingCRISIL AAA/Stable” by CRISIL, “[ICRA] AAA” by ICRA & “CARE AAA" by CARE
Minimum ApplicationRs. 5000 in multiples of one bond
Face Value of BondRs.5000
ListingProposed to be listed in NSE
Interest paymentPayable Annually Only
IssuanceBoth in dematerialised form as well as in physical form as specified by the
Applicant (except for Eligible QFIs) in the Application Form

NHB Tax Free Bond Mar 2014 Series Details

Options
Tranche – II Series 1A
Tranche – II Series 2A
Tranche – II Series 3A
Tenure (years)101520
Interest rate (%) p.a.8.25%8.68%8.65%
OptionsTranche – II Series 1BTranche – II Series 2BTranche – II Series 3B
Interest rate (%) p.a.8.50%8.93%8.90%

Who Can Apply/Invest?

Resident Indivdual /HUF/ Partnership Firm/ Companies/Trust & Foundations/NRI

HIGHLIGHTS OF TAX BENEFITS

• In exercise of the powers conferred by item (h) of sub-clause (iv) of clause (15) of Section 10 of the Income Tax Act, 1961 (43 of
1961) the Central Government authorizes NHB to issue during the FY 2013-14, Tax Free, Secured, Redeemable, Non-convertible
Bonds.
• The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per
provisions under section 10 (15) (iv) (h) of I.T. Act, 1961.
• There will be no deduction of tax at source from the interest, which accrues to the bondholders in these bonds irrespective of the
amount of the interest or the status of the investors.
• Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

Application Process and Form Submission/Collection Centers

Please take print of the Application Form A4 paper size. Click here to download Application form of NHB Tax free Bond 2014
Attach following document along with the application form : –
1] PAN Card and Address Proof Photo Copy attested by applicant.
2] One Cancelled Cheque copy.
3] Bidding is mandatory.
4] Cheque / DD should be drawn in favour of “National Housing Bank Tax-Free Bonds 2013-2014 Escrow Account”.
5] On First come First Serve Basis
6] Keep photocopy of application form for your record.
7] Submit / deposit your NCD application form in Listed/ Design Bank Branches. (search below for your city)
8] To record and track the status/allotment of your application form, send us the soft copy Application Form/ Acknowledgement Slip.
9] The actual bond will reflect in your demat account within 8-12 weeks time form date of allotment.
10] Free Home Service available *

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4 comments

  1. Paresh Patel

    I would like to invest in Trust A/c ( Association of Person ).
    If I purchase from Market 20 year Bonds how much interest I will get ?

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