Closed on 2nd January, 2018.
The Government of India’s (GOI) 8% Savings Taxable Bonds issued by Reserved Bank of India (RBI) are available to those seeking safety of principal and guaranteed returns for 6 years as interest rates on bank fixed deposits continue to tumble month after month.
Features of Govt. of India 8% Savings Taxable Bonds
• Minimum investment: Rs.1,000
• Maximum Investment: No maximum limit.
• Investment Period / Tenure: 6 years from the date of issue
• Interest Rate: 8% per annum
• Interest Options: Half Yearly Payable Interest and Cumulative Interest
• In Non-Cumulative option: interest would be paid on 1st August and 1st February.
• In Cumulative option: effective yield to maturity will be 10.02%, compounded half yearly. (For Rs.1000 bond value, you receive Rs.1601 at the end of 6 years)
• Interest Payment: By ECS / Direct Credit etc. to bank a/c of Bond Holder
• Mode of Issue: Bonds are issued in physical mode, so Demat account is not required.
• Risk of Investment: 100% Risk Free Investment
• Interest income from this bond is taxable
• Tax deducted at source (TDS): TDS will be applicable if interest from this instrument earned is more than Rs 5,000 in a financial year.
• Eligible Investors: Individuals (single, joint or minor), HUFs, Charitable Trusts and Universities. NRIs are NOT permitted to invest in the GOI Bonds.
• Non-transferable and Tradable: The Bonds are issued in the form of credit in the Bond Ledger Account and are NOT transferable and not be tradeable in the secondary market.
• Collateral: GOI – RBI bonds are eligible to create pledge, hypothecation, lien or collateral for loans from banks, financial institutions or NBFCs.
• Nomination: Facility available to nominate person(s) entitled to receive the payment, in the event of the death of the bondholder
• Partial Withdrawal: Not Allowed.
• Tax Exemption: No income tax exemption, however, the bonds will be exempt from Wealth-Tax under the Wealth-Tax Act, 1957.
For the smart and well-informed high taxpayers (Investors), debt mutual funds are definitely a much better option for investment.
GOI -RBI 8% Savings Taxable Bonds intermediary are GOI -RBI 8% Savings Taxable Bonds Advisor, GOI -RBI 8% Savings Taxable Bonds Distributors, GOI -RBI 8% Savings Taxable Bonds Brokers, GOI -RBI 8% Savings Taxable Bondss Consultants, GOI -RBI 8% Savings Taxable Bondss Agents, GOI -RBI 8% Savings Taxable Bonds IFAs. Pune Tax Saving GOI -RBI 8% Savings Taxable Bonds Home service