Government of India 8 % Savings (Taxable) Bonds, 2003
I have the agency of selling the popular RBI 8 % Savings (Taxable) Bonds, 2003. The Bonds are exempt from Wealth-tax under the Wealth tax Act, 1957. No TDS if the interest income falls below Rs 10,000/-.
The Bonds are 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 are issued at par i.e. at Rs.100.00 per cent. The Bonds in the form of Bonds Ledger Account shall not be transferable, but, it has the facility of appointing a nominee.
The Bonds bears interest at the rate of 8% per annum. Interest on non-cumulative Bonds will be payable at half-yearly intervals from the date of issue or interest on cumulative Bonds will be compounded with half-yearly rests and will be payable on maturity along with the principal, as the subscriber may choose. In the latter case, the maturity value of the Bonds shall be Rs.1601.00 (being principal and interest) for every Rs.1,000/-(Nominal). Interest to the holders opting for non-cumulative
Bonds will be paid from date of issue upto 30th September/ 31st March as the case may be and thereafter half-yearly for period ending 1st October/ 1st April. Interest on Bonds in the form of “Bonds Ledger Account†will be paid, by cheque /warrant or through ECS by credit to bank account of the holder as per the option exercised by the investor/holder.
The Bonds are not tradable in the secondary market and are not be eligible as collateral for loans from banks, financial Institutions and Non Banking Financial Company (NBFC) etc.
The Bonds shall be repayable on the expiration of 6(six) years from the date of issue.
