Press Communique - ആർബിഐ - Reserve Bank of India
Press Communique
8% Savings (Taxable) Bonds, 2003
Government of India has announced to launch of 8% Savings (Taxable) Bonds, 2003 commencing from 21st April 2003 to enable resident citizens/charitable institutions/universities 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/charitable institutions/universities. 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 per cent. The Bonds will be issued for a minimum amount of Rs. 1000/- (face value) and in multiples thereof. Accordingly, the issue price, will be Rs.1000/- 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: |
Income-tax: 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. Wealth tax: The Bonds will be exempt from Wealth-tax under the Wealth- tax Act, 1957. |
(vii) |
Maturity and rate of interest: |
The Bonds will have a maturity of 6 years carrying interest at 8% per annum payable half-yearly. The cumulative value of Rs.1000 at the end of six years will be Rs.1601/-. |
(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 |
Full details of the scheme are available in the Government Notification dated 21st March 2003.
Ministry of Finance & Company Affairs
Department of Economic Affairs
New Delhi.
Dated 21st March 2003.