How do I redeem tax free bonds?
Redeeming tax-free bonds is a fairly simple process, provided you have completed the tenure. However, you cannot withdraw your bond before 10-20 years, but only trade it on stock exchanges with other investors. The entity that issued the bond in the first place cannot repurchase it either.
Can I sell tax free bonds?
However, if you sell the bonds in the secondary market, your transaction will be subject to tax. If the holding period is less than 12 months, capital gains on the sale of tax-free bonds are taxed as per the income slab of the investor. If bonds are held for more than 12 months, the gains are taxed at 10%.
Is RBI tax free bonds available?
(ii) Wealth tax: The Bonds will be exempt from Wealth-tax under the Wealth- tax Act, 1957. (i) The Bonds will be issued at par i.e. at Rs. 100.00 percent….Saving Bonds.
| Tenor of holding | Amount payable per Rs.1000 invested | |
|---|---|---|
| Non cumulative | Cumulative | |
| 7th half year | Rs. 1016.25 | Rs.1231.25 |
| 8th half year | Rs. 1016.25 | Rs.1271.20 |
Are tax free bonds listed?
Most tax-free bonds, which have been issued earlier and are now listed on NSE, BSE exchanges, are from government-backed institutions such as Indian Railway Finance Corporation Ltd (IRFC), Power Finance Corporation Ltd (PFC), National Highways Authority of India (NHAI), Housing and Urban Development Corporation Ltd ( …
Where can I buy tax free bonds?
stock exchanges
Tax-free bonds can be transacted in stock exchanges. Any investor can buy and sell these tax-free bonds on the stock exchanges.
Can I buy RBI bonds now?
The Reserve Bank of India (RBI) in February said it will open up government bonds for small investors under ‘RBI Retail Direct’, and released guidelines for the scheme on Monday. RBI may notify the date of commencement of the scheme soon.
How do I buy NHAI tax-free bonds?
These Capital Gain bonds can be purchased either from NHAI/ REC or from authorised brokers of these bonds. There is no online mechanism of purchasing these bonds and a person would be required to physically visit their office and fill in the physical form.
Are IRFC bonds safe?
IRFC bonds are AAA-rated bonds by CRISIL, ICRA, and CARE.
What is IRFC stands for?
Indian Railway Finance Corporation
Indian Railway Finance Corporation (IRFC) is under the ownership of Indian Railways, Ministry of Railways, Government of India.
Where can I buy NHAI tax free bonds?
Are there any tax free NHAI bonds in India?
NHAI Tax Free Bonds Dec 2015, Tranche-I would open for subscription on 17th December, 2015. NHAI Tax Free Bonds carry 7.6% tax free interest for 15 years bond. It offers 10 and 15 year tax free bonds. NHAI Tax-Free Bonds issue size is Rs 10,000 Crores.
How much has IRFC raised from tax free bonds?
Size of the Issue – IRFC is authorized to raise Rs. 6,000 crore from tax free bonds this financial year, out of which the company has already raised Rs. 1,468 crore by issuing these bonds through private placements. The company will raise the remaining Rs. 4,532 crore in this issue.
What is the interest rate of REC 15 year bonds?
Even the REC 15-year bonds, which got listed on November 5th on the BSE and carried a lower rate of interest of 7.34%, got traded at Rs. 1,030 on Friday i.e. a premium of 3% including one month’s accrued interest. This observation makes me believe that there is a scope of making some quick short-term listing gains with IRFC bonds as well.