TMI BlogGovernment of India notifies the issue of 7.75% Savings (Taxable) Bonds, 2018 (“the Bonds”) from January 10, 2018X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) in his or her individual capacity, or (b) in individual capacity on joint basis, or (c) in individual capacity on any one or survivor basis, or (d) on behalf of a minor as father/mother/legal guardian. (ii) a Hindu Undivided Family. 3. Limit of Investment: There will be no maximum limit for investment in the Bonds. 4. Tax Treatment: (i) Interest on the Bonds will be taxable under the Income Tax Act, 1961 as applicable according to the relevant tax status of the Bond holders. (ii) The Bonds will be exempt from wealth-tax under the Wealth Tax Act, 1957 . 5. Issue Price: (i) The Bond will be issued at par i.e. at Rs. 100.00. (ii) The Bonds will be issued for a minimum amount of Rs. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cant/s. (ii) Applications should be accompanied by the necessary payment in the form of cash/ drafts/ cheques / electronic credit as indicated in paragraph 6 above. (iii) Applicants who have obtained exemption from Income Tax under the relevant provisions of the Income Tax Act, 1961 , shall make a declaration to that effect in the application (in Form A) and submit a true copy of the certificate obtained from Income Tax Authorities. 10. Receiving Offices Applications for the Bonds will be received at: (a) Any number of branches of State Bank of India, Nationalised Banks, three private sector banks and SCHIL, as specified in the Annexure 3. (b) Branches of any other bank as specified by the Reserve Bank of India in thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. (viii) If the nominee is a minor, the holder of Bonds may appoint any person to receive the Bonds/ amount due in the event of his / her / their death during the period the nominee is a minor. 12. Transferability: The Bonds held to the credit of Bonds Ledger Account of an investor shall not be transferable. 13. Interest: (i) The Bonds will be issued in Cumulative or Non-cumulative form, at the option of investor and will bear interest at the rate of 7.75% per annum. (ii) Interest on non-cumulative Bonds will be payable at half-yearly intervals from the date of issue in terms of paragraph 7 above and interest on cumulative Bonds will be compounded with half-yearly rests and will be payable on maturity along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndary market and shall not be eligible as collateral for availing loans from banks, financial Institutions and Non-Banking Financial Companies. 16. Repayment (i) The Bonds shall be repayable on the expiration of 7 years from the date of issue. (ii) Premature encashment in respect of the Bonds shall be allowed for individual investors in the age group of 60 years and above, subject to submission of document relating to date of birth of the investor in support of age to the satisfaction of the issuing bank, after minimum lock in period from the date of issue as indicated below: (a) Lock in period for investors in the age bracket of 60 to 70 years shall be 6 years from the date of issue. (b) Lock in period for investors in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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