7.74% IREDA Tax Free Bond – January 2016

Salient Features: IREDA Tax Free Bonds 2016

• Offer Period: January 8 to 22, 2016 (the offer can be pre-closed on full subscription)
• Annual Interest Rates for Retail Investors: 7.53% for 10 Years; 7.74% for 15 Years and 7.68% for 20 Years
• The interest rates are 0.25% less for HNIs, QIBs and corporate subscribers.
• 40% of issue is reserved for Retail Investors
• Price of each bond: Rs 1,000
• Minimum Investment: 5 Bonds (Rs 5,000)
• Max Investment Limit for Retail Investor: Rs 10 Lakhs
• Date of first Interest Payment: To be updated
• Can be applied both in Physical and Demat Form
• Allotment: First Come First Serve
• Listing: Bonds would be listed on BSE and will entail capital gains tax on exit through secondary market
• Tax/TDS: As these are tax Free Bonds so no tax is to be paid and there is no TDS on interest

 Tax Free Bonds are suited for people in the tax bracket of 20% or higher who are looking for regular and safe income.

In case you do not want regular income you should first exhaust your Rs 1.5 lakhs PPF limit where the returns are 8.7% and tax free. Salaried employees should opt for VPF before looking at tax free bonds. Both the above options have higher returns, tax free and partial exit options after 5/6 years.

For detail :http://apnaplan.com/ireda-tax-free-bond-jan-2016/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+ApnaPlan+%28Apna+Plan%29#