Jan 4: India Government will launch a new 7.75% Savings (Taxable) Bonds, 2018 on January 10. It is available for investment to resident citizens, Hindu Undivided Families (HUF) but Non-Resident Indians (NRIs) not eligible for investing.
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.
Issue Price: The Bonds will be issued at par i.e. at Rs.100.00
The Bonds will be issued for a minimum amount of Rs.1,000/- (face value) and in multiples thereof. Accordingly, the issue price, will be Rs.1,000/- for every Rs.1,000/- (Nominal).
The Bonds will be issued in demat form (Bond Ledger Account) only.
Wealth tax: The Bonds will be exempt from Wealth-tax under the Wealth Tax Act, 1957.
Maturity and rate of interest: The Bonds will have a maturity of 7 years carrying interest at 7.75% per annum payable half- yearly. The cumulative value of Rs. 1,000/- at the end of seven years will be Rs. 1,703.
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.