Tax Saving Bond
The investor can choose any/all of the following options in respect of Tax Saving Bond :
| Option | I | II |
|---|---|---|
| Tax Benefit under Section | 88 | 88 |
| Issue Price (Rs.) | 5,000 | 5,000 |
| Face Value (Rs.) | 5,000 | 6,700 |
| Tenure | 5 years | 5 years |
| Interest(%) (p.a.)* | 6.00 | DDB@(YTM 6.00 %) |
| Interest Payable | Annually | DDB@ |
| Yield to Investor (%) * + # (Including Tax Benefits) | 10.0 | 9.6 |
| Minimum Application | 1 Bond | 1 Bond |
@ Tax Saving Bond Option II is in the nature of Deep Discount Bond (DDB), hence no periodic interest is payable
* Subject to TDS as per the then prevailing tax laws.
+ The yield has been calculated considering the tax rebate of 15% available to the investor and assuming that a surcharge of nil% and education cess of 2% of tax is payable in case of all the options
# Rounded off to nearest multiple of 0.1.
The investor can choose any/all of the following options in respect of Regular Income Bond :
| Option | I | II | III |
|---|---|---|---|
| Issue Price/Face Value(Rs.) | 5,000 | 5,000 | 5,000 |
| Tenure | 5 years | 7 years | 10 years |
| Interest(%) (p.a.)* | 6.75 | 7.00 | 7.25 |
| Interest Payable | Annually | Annually | Annually |
| Yield to Investor (%) * # | 6.8 | 7.0 | 7.3 |
| Minimum Application | 3 Bonds | 3 Bonds | 3 Bonds |
* Subject to TDS as per the then prevailing tax laws.
# Rounded off to nearest multiple of 0.1.
The investor can choose any/all of the following options in respect of Children Growth Bond :
| Option | I | II |
|---|---|---|
| Issue Price (Rs.) | 5,000 | 5,000 |
| Face Value (Rs.) | 8,000 | 10,000 |
| Tenure | 7 years | 10 years |
| Interest Payable | DDB@ | DDB@ |
| Yield to Investor (%) * # | 6.9 | 7.2 |
| Minimum Application | 2 Bonds | 2 Bonds |
@ All Options are in the nature of Deep Discount Bond (DDB), hence no periodic interest is payable
* Subject to TDS as per the then prevailing tax laws.
# Rounded off to nearest multiple of 0.1.
