#NRIMONEYCLINIC #govtbonds #Floatingrate

WHO CAN INVEST ?

All Resident Indians Can Invest
HUF Can Invest
Can Invest As single Or Joint Account
NRIs Are Not Eligible To Invest
If You Become NRI Subsequently, You Can Hold Till Maturity

INTEREST RATE PAYABLE

No Fixed Interest rate , Floating Interest Rate
Interest Rate Gets Reset At Half Yearly Interval
Interest Rate Benchmark Is NSC Rate
Applicable Interest Rate Is NSC Rate + 0.35%
Current Interest Rate 7.15%( 6.80 + 0.35%)
Due Dates For Interest Rate Reset 1st Of Jan & Jul

INTEREST PAYMENT DATES

Interest Paid Every Half Year
Due Dates Of Payment 1st Of Jan & Jul

OTHER FEATURES

Bonds Do Not Have Cumulative Mode Of Investment
Bonds Available Only In Interest Payout Mode
Bonds Mature In 7 Years
Minimum Investment Rs 1000/-
Maximum Amount – No Upper Limit
Cannot Be Pledged For Loan
Cannot Be Transferred

TAX TREATMENT

No Income Tax Benefit Available
Interest Earned Is Treated As Income Of The Year
TDS Is applicable While Paying Interest

INVESTMENT CERTIFICATES

Investment Is Held In Digital Format
Investments Are Recorded In Bond Ledger Accounts ( BLA)
BLA Certificate Will Be Issued As Proof

PREMATURE EXIT

Allowed Only In Case Of Senior Citizens
60 – 70 Years – After 6 Years
70 – 80 Years – After 5 Years
Above 80 Years – After 4 Years
Interest Penalty – 50% Of Interest Of That Cycle
HOW TO INVEST ?

Through Private & Public Sector
Through Websites Of Brokers
Through website Of Stock Holding Corporation