 "Investment outlook stays dim, job scene picks up")
The 7.75% savings (taxable) bonds willl be launched on January 10. A closer look at the new investment instrument available for Indian citizens.
WHO CAN INVEST
* Open to investment by individuals (including joint holdings) and Hindu undivided families
* NRIs are not eligible to invest in these bonds
SUBSCRIPTION
* Applications for the bonds will be in the form of Bond Ledger Account
* Will be received in the designated branches of agency banks and SHCIL
PERIOD
* Will be on tap till further notice and issued in cumulative and non-cumulative forms
ISSUE PRICE
* To be issued at par that is at Rs 100
* Will be issued for a minimum amount of Rs 1,000 (face value) and in multiples thereof
* Will be issued in demat form (Bond Ledger Account) only
LIMIT OF INVESTMENT
* No maximum limit for investment in the bonds
TRANSFERABILITY
* Not transferable
* Not tradeable in the secondary market
* Not eligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions
NOMINATION
* A sole holder or a sole surviving holder of a bond, being an individual, can make a nomination
MATURITY AND RATE OF INTEREST
* Will have a maturity of 7 years carrying interest at 7.75% per annum payable half-yearly
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
