Govt. of India (GOI)- RBI 8% Savings (Taxable) Bonds 2003 Application Form
- 8%p.a. rate of interest
- Minimum investment of Rs.1,000
- No maximum limit on investment
- 6 years tenure of the bond from the date of issue
- 100% risk free investment option
- Choose from Half Yearly Payable interest and Cumulative interest
- For Half-yearly period ending 31st July/31st January interest paid on 1st August and 1st February.
- On Maturity, investors need to surrender Bond Certificate to received maturity amount.
- No income tax exemption.
- However, the bonds will be exempt from Wealth-Tax under the Wealth-Tax Act, 1957.
- Interest on Bond will be paid, by through ECS etc. by credit to bank a/c
- The Bonds shall not be tradeable in the secondary market.
- Bonds shall be entitled to create pledge, hypothecation or lien for loans.
You can apply for the SBI GoI RBI 8% Savings (Taxable) Bonds if you are:
- An Individual, not being a Non Resident Indian
- A Hindu Undivided Family
- A Charitable Institution
- A University
A] An Individual, not being a Non Resident Indian
- In his or her individual capacity or
- In individual capacity on joint basis or
- In individual capacity on anyone or survivor basis or
- On behalf of a minor as father/mother/legal guardian
B] A Hindu Undivided Family
C] A Charitable Institution
- “Charitable Institution” to mean a company registered under Section 25 of Indian Companies Act 1956 or
- An institution which has obtained Certificate of Registration as a Charitable institution in accordance with a law in force or
- Any institution which has obtained a certificate from an Income Tax Authority for the purpose of Section 80 G of the Income Tax Act, 1961
- Any institution notified by the Central Government under clauses (ii) or (iii) of Sub-Section (1) of Section 35 of Income Tax Act, 1961
D] A University
By university, it means a university established or incorporated by a Central, State or Provincial Act, and includes an institution declared under Section 3 of the UGC Act, 1956 (3 of 1956), to be a university for the purposes of that Act.
Take print of the Application Form on A4 paper size.
Attach following document along with the application form : –
1] PAN Card Photo Copy self-attested by applicant.
2] Address Proof Photo Copy self-attested by applicant. (Aadhar Card)
3] In case the application is submitted by a Power of Attorney (POA) holder, please submit original POA for verification along with an attested copy
4] In case the application is on behalf of a minor, please submit the original birth certificate from the School or Municipal Authorities for verification, together with an attested copy
5] One Cancelled Cheque copy (for ECS/RTGS/NEFT payment of Interest /Maturity Amount.)
6] Account Payee Payment Cheque / DD (payable at Pune) should be drawn in favour of “SBI 8% Savings (Taxable) Bonds 2003”
7] Keep photocopy of application form for your record.
8] You need to send your Application along with above document to below mention address:-
Sanriya Investment Advisors Pvt. Ltd., 968/1, Senapati Bapat Road, Opposite Ratna Memorial Hospital, Between ATM of PNB and Vidya Sahakari Bank, Pune 411016, Mo.No.9822403407
09] Bond Certificate will be issued/Collected within 30 days from the date of cheque realization, ask while submitting application form.
10] To record and track the status/allotment of your application form, send us the soft copy Application Form/ Acknowledgement Slip to above address.
11] Application Number would be entered by bank.
12] Free Home Service available *Pune and Mumbai.
- Are the SBI 8% Savings (Taxable) GOI – RBI Bonds transferable?
:- No, these bonds are not transferable.
- What bond options are available?
:- You can choose from cumulative and non-cumulative bond options.
- In what form are these bonds issued?
:- Bonds are issued in the form of a Bond Ledger Account in denominations of Rs. 1000.
- What is the tenure of the SBI 8% Savings (Taxable) Bonds?
:- The tenure of the bond is 6 years from the date of issue. No interest will accrue after the maturity of the bond.
- Is a nomination facility available?
:- Yes, a nomination facility is available.
- How much tax do I have to pay?
:- The interest income from the bonds is taxable. TDS is deducted at the time of interest payment as per the prevailing IT rules.
- What is the minimum and maximum limit for investment in the SBI 8% Savings (Taxable) Bonds?
:- You need to invest a minimum of Rs. 1,000. However, there is no maximum limit on investment.
- How much interest will the SBI 8% Savings (Taxable) Bonds bear?
:- Bonds will bear interest @ 8.00% p.a. and are payable half-yearly.
The interest payment dates are February 1 and August 1 for non-cumulative investments.
In cumulative option, the value of the investments at the end of 6 years would be Rs.1601 (being Principal & Interest) for Rs.1000 invested.
Interest on the Bonds is taxable under Income Tax Act 1961.
- Is loans available from banks against the security of these SBI 8% Savings (Taxable) Bonds 2003?
:- The holders of the bonds shall be entitled to create pledge, hypothecation or lien in favour of scheduled bank for loans against the bonds.
10. What will be the date of issue of SBI 8% Savings (Taxable) Bonds 2003?
:-Date of realization of cheque / draft.
The Government of India has now vide Notifications dated July 29, 2013 and August 16, 2013 (copies enclosed), decided to provide the facility of premature encashment of these bonds to individual investors in the age group of sixty years and above, after a minimum lock-in period of three years from the date of issue as indicated below:-
(a) Lock-in period for investors in the age bracket of 60 to 70 years shall be 5 years from the date of issue.
(b) Lock-in period for investors in the age bracket of 70 to 80 years shall be 4 years from the date of issue.
(c) Lock-in period for investors of the age of 80 years and above shall be 3 years from the date of issue.
- An investor, desiring to avail of the facility of premature encashment, will have to submit documentary evidence in support of his/her date of birth to satisfaction of the agency bank. In case of joint holders or more than two holders of a bond, any one of the holders should fulfil the above conditions of eligibility.
- After aforesaid minimum lock-in period from the date of issue, an eligible investor can surrender the bonds at any time after the 10th or 8th or 6th half-year as applicable, corresponding to the respective lock-in period, however, encashment payment will be made on the following interest payment due date. Thus, the effective date of premature encashment for the eligible investors, in case of Non-Cumulative bonds will be 1stAugust and 1stFebruary every year after completion of the lock-in period as per the eligibility criteria and for Cumulative bonds, it will be notionally the 7th or 9th or 11thhalf-yearly interest payment due date (the date can be any date and not necessarily 1stAugust and 1stFebruary). However, 50% of the interest due and payable for the last six months of the holding period will be recovered as penalty from the investor for premature encashment in such cases, both in respect of cumulative and non-cumulative bonds.
The amount payable on completion of respective half year for per `1000 invested is given hereunder
|: Payable on||Amount payable per Rs. 1000 invested( in Rs. )|
|7th half year||1020||1290.63|
|8th half year||1020||1342.25|
|9th half year||1020||1395.94|
|10th half year||1020||1451.78|
|11th half year||1020||1509.85|
- We further clarify the provisions for premature encashment as under:
- i) Premature encashment means encashment of entire amount invested through any single application for 8% Savings (Taxable) Bonds, 2003, which has completed minimum lock-in period, as per the eligibility criteria from the date of issue. As such, investors can be allowed to withdraw entire amount of investment made on any single application. However, if a holder is having multiple investments in the same BLA, he/she can make one or more request(s) for premature encashment of entire amount(s) of one or more investment(s), which has/have completed minimum lock-in period as per the eligibility criteria from the date of issue.
- ii) Partial encashment of amount invested on a single application is not permitted.
- iii) Where post-dated interest warrants have been issued to eligible investor at the time of investment, they are required to surrender the same along with request for pre-mature encashment.
- iv) There is no specific form/declaration, which the investor has to fill-up while submitting his/her request for premature encashment.
- v) The investor needs to submit a request letter along with discharge certificate in usual Form1A, as is being obtained now, for the full amount to be prematurely encashed.
- 6. The premature encashment of investment may be allowed even after despatch of interest warrant, but such requests, received after despatch of interest warrants, must be accompanied by the interest warrant of latest half-year issued to the investor. However, in cases where interest warrants have already been despatched, but not yet received by the holders or not tendered by the holder, request for premature encashment may be accepted on the condition that 50% of the interest due and payable for the last six months of the holding period will be recovered from the principal amount and credited to the Interest Account maintained with CAS, Nagpur. In case of receipt of requests for premature encashment well in advance, Payment Orders for encashment amount/credit to account through NEFT/NECS will be made on the next half yearly due date, i.e. 1st August/1st February, as the case may. In case where such request is not received well in advance, the issuing offices may take five clear working days to make the payment.
- 7. Suitable instructions to designated branches operating the scheme may be issued to make the changes in the system to absorb the premature encashment process. The premature encashment option may also be suitably displayed in the dealing branches.