Many of the peoples are interested in tax saving infrastructure bonds due to better interest rate and separate tax benefit above Rs.1 Lakh available under 80C.Investors have some common queries which I have listed here.
1.What is mean by “Bonds are secured”
Security cover of equivalant amount has provided by the issuers.
2.I do not have a pan card.
Then you will not able to apply for this issue as pan card is mandatory.
3.Is it necessory that I should pay cheque through the bank account linked to my demat account?
You can pay from any of your bank account.But,annual interest payment or maturity amount will be credited only in the bank account linked to the demat account irresepective of the bank account through which you have paid.
4.I have applied before 7 days but still my cheque is not cleared:
Cheques get cleared within 1-2 days.If its not get cleared even for 7 days then probabaly issue is from your bank side.(e.g signature mismatch etc.)
5.Why cancelled copy of cheque is required:
Cancelled copy of cheque is required for verification of bank account,MICR code or IFSC code to activate ECS of maturity amount.It is required for physical mode only.
6.Can I purchase bonds in the name of my spouse/child and take tax benefit?
No.In such case tax benefit will not be available.
7.If I do not get allotment then what will happen to my application money?
Application money will be refunded to you.
8.When will allotment take place?
Allotment takes place within maximum of 30 days from last date of issue.
9.Can I provide nomination?
Yes.You can provide nomination for physical mode.For demat mode,nominee of demat account is default nominee of the issue and no need to provide separately.
10.I want maturity amount in different account.
Its possible.Enter the bank account details in the space provided and provide cancelled cheque of the same.
If you have any other queries,then please let me know.
Where can I get contact/dealer details for REC infra bonds at Bangalore?
How can i get the application form for REC?