| ITEM |
8%
Savings (Taxable) Bonds,
2003 |
Remarks |
Category of Investor :
|
Individual, HUF, University,
Charitable Institution
|
Non Resident Indian are
not eligible to invest in
these bonds
|
Limit of investment
|
Minimum Rs.1000/- and in
multiples of Rs.1000/-
|
No maximum limit
|
|
Date of Issue of Bonds
|
Date of receipt of subscription
in cash or date of realization
of cheque / draft.
|
Nil
|
Forms of Bonds
|
Bond Ledger Account
|
|
Option
|
Non-cumulative / Cumulative
|
Change of option is generally
not permitted.
|
Interest
|
In case of Non-cumulative
option, interest is payable
on half yearly basis. In
case of Cumulative option,
interest is payable at the
time of maturity.
|
Half yearly interest is
payable 1st February / 1st
August.
|
Post Maturity Interest |
Post Maturity Interest is
not available.
|
|
Bank Account |
|
To facilitate payment of
interest at half-yearly
intervals, under non-cumulative
option, it is desirable
for the investor to open
a bank account in the same
branch.
|
Tax Benefits |
Income from the bond is
taxable.
Wealth tax is exempted
|
No TDS while interest is
paid.
|
Nomination Facility |
Available to sole holders
|
Non-resident Indians can
also be nominated. However,
remittance of the interest
/ maturity proceeds will
be subjected to the Exchange
Control regulations prevailing
at the time of remittance.
|
Maturity Period
|
After 6 years
|
|
Premature redemption
|
Not Available
|
|
Transferability
|
Not Transferable
|
|
Loans from banks against the
security of these Savings
bonds
|
The bonds cannot be pledged
as security for availing
of loans from banks
|
|
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