TaxTMI 
TaxTMI 
Government of India notifies the issue of 7.75% Savings (Taxable) Bonds, 2018 (“the Bonds”) from January 10, 2018
X X X X Extracts X X X X
X X X X Extracts X X X X
....rding to the relevant tax status of the Bond holders. (ii) The Bonds will be exempt from wealth-tax under the Wealth Tax Act, 1957. 5. Issue Price: (i) The Bond will be issued at par i.e. at Rs. 100.00. (ii) The Bonds will be issued for a minimum amount of Rs. 1,000 (face value) and in multiples thereof. Accordingly, the issue price will be Rs. 1,000 for every Rs. 1,000 (Nominal) face value. 6. Subscription (i) Subscription to the Bonds will be in the form of Cash/ Drafts/ Cheques or any electronic mode acceptable to the receiving office. (ii) Cheques or drafts should be drawn in favour of the bank (Receiving Office), specified in paragraph 10 below and payable at the place where the applications are tendered. 7. Date of Issue The Bonds will be issued, in demat form and credited to the Bond Ledger Account (BLA) of the investor/s on the date of tender of cash or the date of realization of draft/ cheque. 8. Form (i) The Bonds will be issued only in the demat form and held at the credit of the holder in an account called Bonds Ledger Account (BLA), opened with the receiving bank. (ii) The Bonds issued to the credit of BLA of an inv....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by a holder of a Bond can be changed by a fresh nomination in Form B, or as near there to as may be, or may be cancelled by giving notice in writing to the Receiving Office in Form C, annexed to the notification (Annexure 5). (vii) Every nomination and every cancellation or variation shall be registered at the Receiving Office where the Bond is issued and shall be effective from the date of such registration. (viii) If the nominee is a minor, the holder of Bonds may appoint any person to receive the Bonds/ amount due in the event of his / her / their death during the period the nominee is a minor. 12. Transferability: The Bonds held to the credit of Bonds Ledger Account of an investor shall not be transferable. 13. Interest: (i) The Bonds will be issued in 'Cumulative' or 'Non-cumulative' form, at the option of investor and will bear interest at the rate of 7.75% per annum. (ii) Interest on non-cumulative Bonds will be payable at half-yearly intervals from the date of issue in terms of paragraph 7 above and interest on cumulative Bonds will be compounded with half-yearly rests and will be payable on maturity along with the principal. (iii) In the latter cas....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e of joint holders or more than two holders of the Bond, the above lock in period will be applicable even if any one of the holders fulfills the above conditions of eligibility. (iv) After aforesaid minimum lock in period from the date of issue an eligible investor can surrender the bonds at any time after the 12th, 10th and 8th half year corresponding to the respective lock in period but redemption payment will be made on the following interest payment due date. Thus, the effective date of premature encashment for eligible investors will be 1st August and 1st February every year. However, 50% of interest due and payable for the last six months of the holding period will be recovered in such cases, both in respect of Cumulative and Non-cumulative bonds. 17. Brokerage: Brokerage at the rate of Rs. 1.00 per Rs. 100 will be paid to the brokers registered with the Receiving Offices, as listed in paragraph 10 above, on the applications tendered by them and bearing their stamp, on behalf of their clients. By Order of the President of India, [F. No.F.4(28)-B(W&M)/2017] PRASHANT GOYAL, Jt. Secy. (Budget) ============= Document 1 [ à¤à¤¾à¤— II-....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (being principal and interest) for every Rs. 1,000/- (Nominal). Name of the Receiving Office Branch Code No. Official Seal. 1. (Name---- Designation Nomination Registered at Sr.No. Note: This certificate is non-negotiable. 2. (Name-- Designation Signature of the Head of the Receiving Office/ officer next to him Details of Bonds held in the Bond Ledger Account Investment Transfer Due date of repayment Repayment * Balance Initials under bank's seal Date Amount (Nominal) Date Amount (Nominal) Date Amount (Nominal) Nominal Maturity Value 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. * Due date of repayment to be indicated in the case of transfer. [ à¤à¤¾à¤— II-खणà¥à¤¡ 3 (ii)] à¤à¤¾à¤°à¤¤ का राजपतà¥à¤° : असाधारण (FORM A) [See Para 9] APPLICATION FORM FOR 7.75% Savings (Taxable) Bonds, 2018 (Please read the instructions carefully before filling up the form) (Please write in block letters and tick ( ☠) the appropriate box....
X X X X Extracts X X X X
X X X X Extracts X X X X
....it to the bank account to the holder or by cheque/warrant. + In case of thumb impression [ à¤à¤¾à¤— II-खणà¥à¤¡ 3 (ii)] I, à¤à¤¾à¤°à¤¤ का राजपतà¥à¤° : असाधारण H.U.F. DECLARATION FORM [Refer to Annexure 2 - Form A (See para 9)] (ONLY IF APPLICANT IS KARTA OF HUF) SEX: M. [ ] F.[ ] 21 RESIDING AT THE ADDRESS GIVEN AGAINST THE FIRST APPLICANT, DO SOLEMNLY AFFIRM THAT I AM THE KARTA OF THE HINDU UNDIVIDED FAMILY STYLED (NAME OF THE HUF AND ADDRESS) AND AS SUCH HAVE FULL POWERS TO INVEST, TRANSFER OR OTHERWISE DEAL IN 7.75% SAVINGS (TAXABLE) BONDS, 2018 STANDING IN THE NAME OF THE SAID HUF. PLACE: DATE: SPECIMEN SIGNATURE FOR AND ON BEHALF OF THE HUF (NAME OF THE HUF) SIGNATURE OF THE KARTA 1) 2) INSTRUCTIONS AND GUIDELINES FOR 7.75% SAVINGS (TAXABLE) BONDS, 2018 There is no maximum limit for investment in the Bonds. Cheque/ draft towards subscription should be drawn in favour of the bank/Receiving Office, receiving the application and payable at the place where the application is tendered....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... tax - The bonds will be exempt from Wealth Tax under the Wealth Tax Act 1957. ii) Income Tax - Tax will be deducted at source while making payment of interest on the non-cumulative bonds and credited to Government Account. Tax on the interest portion of maturity value will be deducted at source at the time of payment of the maturity proceeds on the cumulative bonds and credited to Government Account. 12) 13) The bond is repayable after a period of seven years from the date of issue. Applications for Bonds will be received at branches of State Bank of India and Nationalized Banks, three private sector banks and SHCIL specified in the Annexure 3 of this Notification. 14) Brokerage at the rate of Rs. 1.00 (Rupee one only) per Rs. 100/- will be paid to the brokers registered with Receiving Offices listed in Para 10 (a) & (b) as also to authorised banks on the applications tendered by them on behalf of their clients and bearing their stamp. 15) The Bonds shall not be tradable in secondary market and not eligible as collateral for loan from banks, financial institutions and NBFC, etc. Annexure 3 List of Receiving Offices handling 7.7....