We deal in the following category of bonds
RBI Floating Rate Bonds
Face Value of Bond is Rs 1,000 and the minimum investment is 1 bond (Rs. 1000). Apart from many other benefits one of the benefits of RBI Bonds is that there is no maximum limit on Investment, which makes them suitable for lump sum investments. Bond tenure is 7 years.
RBI comes with the floating rate coupon. Individuals (single, joint, or minor) and HUFs can
invest in these Bonds, however, NRI’s are not eligible to invest.
Options to choose:
- Cumulative – You receive Investment & Interest at the end of 7 years on maturity.
- Non-cumulative – The interest amount is paid out half-yearly on January 1 and July 1 every year.
Best suited for Senior Citizens:
- Lock in period for investors in the age bracket of 60 to 70 years shall be 6 years from the date of issue.
- Lock in period for investors in the age bracket of 70 to 80 years shall be 5 years from the date of issue.
- Lock in period for investors of the age of 80 years and above shall be 4 years from the date of issue.
Rate of Return :
- NSC (National Saving Certificate) Rate +0.35%.
Capital Gain Bonds
As per provisions of Income Tax Act, 1961, any long-term capital gains arising from transfer of any capital asset would be exempt from tax under section 54EC of the Act if:
- The entire capital gain realized is invested within 6 months of the date of transfer in eligible bonds.
- Such investment is held for 5 years.
- To avail of capital gain exemption, the bonds so acquired cannot be transferred or converted into money or any loan or advance.
| Issue Details | On-going |
| Tenure | 5 years |
| Rate of Interest | 5.00% p.a. payable annually |
| Taxation | Interest is taxable although no TDS is deducted |
| Redemption | Automatic Redemption after 5 Years |
| Rating | AAA rated |
| Mode of Holding | Physical or Demat |
| Min Investment | 1 Bonds (Rs. 10,000) |
| Max Investment | 500 Bonds (Rs. 50,00,000 Lacs) |
Capital Gains Bonds are issued by the below Corporations:
| Bonds | Issue Details | Coupon | Rating | Tax Benefit | Tenure |
| Rural Electrification Corporation | On-Going | 5.00% p.a. | AAA Rating | Taxable Bonds with benefits under Section 54 EC of Income Tax Act, 1961 | 5 Years |
| National Highway Authority of India | On-Going | 5.00% p.a. | AAA Rating | 5 Years | |
| Power Finance Corporation | On-Going | 5.00% p.a. | AAA Rating | 5 Years | |
| Indian Railways Finance Corporation | On-Going | 5.00% p.a. | AAA Rating | 5 Years |