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What are Tax Saving Infrastructure Bonds?
How Do I Buy ICICI And IDBI Infrastructure Bonds?
What Is The Minimum Investment And The Range Of Investment
for ICICI And IDBI Infrastructure Bonds?
What Is The Duration Of IDBI And ICICI Infrastructure
Bonds?
Can I Borrow Against Infrastructure Bonds?
What Are Tax Saving Capital Gains Bonds?
How Do I Buy
NABARD/NHAI Bonds?
What Is The Minimum Investment And The Range Of Investment
for NABARD/NHAI Bonds?
What Are RBI Savings Bonds?
How Do I Buy RBI Savings Bonds?
What Is The Minimum Investment And The Range Of Investment
for RBI Savings Bonds?
What Is The Duration Of RBI Savings Bonds?
What are Tax Saving Infrastructure Bonds?
Infrastructure bonds are available through issues of ICICI Bank
and IDBI, brought out in the name of ICICI Safety Bonds and IDBI
Flexibonds. These provide tax-saving benefits under Section 88
of the Income Tax Act, 1961, up to an investment of Rs.1,00,000,
subject to the bonds being held for a minimum period of three
years from the date of allotment.
How Do I Buy ICICI And IDBI Infrastructure Bonds?
Both ICICI Safety Bonds and IDBI Flexibonds have regular issues.
Application forms can be obtained directly from these institutions
or through brokers and intermediaries. Also, IDBI Bonds are listed
on the stock exchange, and can be purchased from there too.
What Is The Minimum Investment And The Range
Of Investment for ICICI And IDBI Infrastructure Bonds?
Both these bonds can be purchased at Rs 5,000 each. You have
to apply for a minimum of 1 bond. There are no upper ceilings
imposed upon the purchase of such bonds.The rate of interest varies
each year.
What Is The Duration Of IDBI And ICICI Infrastructure Bonds?
The duration of the ICICI Safety Bonds vary according to the
option chosen by the investor. Under the first option (mentioned
earlier), the duration of is 3 years; under the second option,
the duration is 3 years and 4 months. IDBI Flexibond's duration
varies from 3 years to 5 year 6 months.
Can I Borrow Against Infrastructure Bonds?
Yes, you can borrow against infrastructure bonds by pledging
them with a bank. The amount depends on the market value of the
bond and the credit quality of the instrument.
What Are Tax Saving Capital Gains Bonds?
Investments in bonds issued by the National Bank for Agriculture
and Rural Development (NABARD), National Highway Authority of
India (NHAI), and Rural Electrification Corporation (REC) are
at present eligible for capital gains tax savings. Gains made
out of a capital transfer need to be invested in the above bonds
within six months of sale of capital assets in order for the proceeds
of such sale to be exempt from capital gains tax.
How Do I Buy NABARD/NHAI Bonds?
These bonds are available on an 'on tap' basis, i.e., continuously
open for sale. Application forms for NABARD Bonds may be obtained
from the NABARD Head Office in Mumbai, 25 regional offices, and
27 selected District Development Managers' offices of NABARD.
There are other nationalised bank and intermediaries like us who
provides these bonds on demand.
What Is The Minimum Investment And The Range Of Investment
for NABARD/NHAI Bonds?
Minimum investment for NABARD Bonds is Rs 10,000 or in multiples
thereof, and Rs 1,00,000 for NHAI bonds. There is no prescribed
upper limit for investments in the above instruments.
Can I Borrow Against NHAI/NABARD Bonds?
No,
NABARD/NHAI Bonds cannot be offered as security for any loan
or advance. This is because instruments under Section 54EC of
the Income Tax Act, 1961, cannot be offered as security for a
loan.
What Is The Duration Of NABARD/NHAI Capital Gains Bonds?
The maturity of the bonds is at the expiry of 7 years in case
of NHAI, with a lock-in period of 3 years as specified under Section
54EC of the Income Tax Act, 1961. Similarly, NABARD/REC bonds
are for 5 years and have a lock-in period of 3 years from the
date of allotent of the bonds.
What Are RBI Savings Bonds?
RBI Savings Bonds are instruments that are issued by the RBI,
and currently has two options - one carrying an 8 per cent rate
of interest per annum, which is taxable and the other one carries
a 6.5 per cent (tax-free) interest per annum. The interest is
compounded half-yearly and there is no maximum limit for investment
in these bonds. The maturity period of the 8 per cent (taxable)
bond is six years and that of the 6.5 per cent (tax-free) bond
is five years.
How Do I Buy RBI Savings Bonds?
Application forms for RBI Bonds are available and accepted at
all branches of the Reserve Bank of India, designated branches
of the State Bank of India, and designated branches of nationalised
banks across the country.
What Is The Minimum Investment And The Range Of Investment
for RBI Savings Bonds?
The minimum investment on RBI Savings Bonds is Rs 5,000. You
can apply in multiples of Rs 1,000 thereafter. There is no prescribed
upper limit to your investment in this instrument.
What Is The Duration Of RBI Savings Bonds?
The period of holding of 6.5 per cent (tax-free) RBI Relief Bond
is five years from the date of issue. And for the 8 per cent (taxable)
RBI Relief bond, the maturity period is six years. The bonds are
repayable on the expiration of the maturity.
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