Bonds
| ITEM | 8% SAVINGS (TAXABLE) BONDS, 2003 |
| Who Can Invest? | Individual, HUF, University & Charitable Trust |
| Minimum/Maximum Investment | Rs.1000/-& in multiples thereof. No upper limit. |
| Period of investments | 6 years |
| Interest payable | Non Cumulative, payable Half Yearly – on 1stFebruary & 1st August. In case of Cumulative option, interest payable on maturity. |
| Tax Benefit | Wealth Tax is exempted. Income Tax will be deducted at source while interest is paid. |
| Forms of Bonds | Bond Ledger Account (BAL). |
| Date of Issue of Bonds | Date of receipt of subscription in Cash or date of realization of cheque/draft. |
| Bank Mandate | It is mandatory for the investors to provide Bank account details to facilitate payment of interest/maturity value. |
| Nomination Facility | Available – can nominate one or more person as nominee. NRI can be also nominated. However, remittance of the interest/maturity proceeds will be subject to Foreign Exchange regulations prevailing at the time of remittance. Minor also can be nominated. |
| Transferability | The Bonds are not tradable/transferable. However, the Bonds shall be eligible as collateral for loans, to creat pledge, hypothecation or lien in favour of scheduled bank for loans against the security of the bonds. |
| Option of schemes | Non cumulative/ Cumulative. Change of option is not permitted. |
