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8 p.c. taxable bonds open for sale

By Our Special Correspondent

NEW DELHI MARCH 22 . The Government has opened the sale of 8 per cent taxable savings bonds to enable resident citizens, charitable institutions and universities to invest in these bonds without any monetary ceiling. However, non-resident Indians (NRIs) are not eligible to invest in these bonds.

The bonds will be issued for a minimum of Rs. 1,000 and in multiples thereof. Also, the bonds will be issued in the demat form (Bond Ledger Account) only. These bonds would on tap till further notice and issued in cumulative and non-cumulative forms. While these bonds would be exempt from wealth tax, interest on the bonds would be taxable at rates applicable to the tax status of the bondholder.

The bonds would have a maturity of six years carrying an interest of 8 per cent per annum payable half-yearly. The cumulative value of the Rs. 1,000 bond at the end of six years would be Rs. 1,601. The bonds will not be transferable and will not be tradable.

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