Saving-Ideas.com

Icon

Personal Finance Blog India –

NHAI-Tax Free Bonds Dec2011:


National Highway Authority Of India(NHAI) ,an autonomous body under ministry of Road Transport & Highways ,Govt Of India was constituted by an act of parliament in 1995.It is responsible for the development,maintainance and management of national highways and issues related to it.

NHAI has come up with an issue of Tax Free bonds means interest received from these bonds will be free from income tax u/s 10(15)(iv)(h) of IT act 1961.

Issue Details:

  • Issue Open date:Dec 28, 2011.
  • Issue Close date:Jan 11,2012.
  • Holding:Both in demat and physical form.
  • Interest Rates:
Options Tranche-1Series-1 Tranche-1Series-2.
Tenor 10 Yrs 15 Yrs
Coupon Rate 8.20% 8.30%
  1.  Interest payment is annual only and no cumulative option.Interest will be paid on first day of month of October each year.First interest payment will be on 1st Oct.2012.with interest from allotment date to 30th Sept 2012 will be paid.
  2. Face value: Rs.1,000/-.
  3. Minimum Application amount: 50 Bonds or Rs.50,000/-.
  4. Security:Bonds are secured.
  5. Credit Ratings: AAA from CRISIL,CARE and FITCH,,which indicates highest safety and stable outlook.
As interest received is tax free,investors with higher tax brackets can benefited more.Partial liquidity is  available through annual interest income.Currently SBI is offering 9.25% interest rate.For 20% bracket imcome net returns get reduced upto 7.25%…as well in future tax bracket can also be changed to 30%.so if anyone looking to lock some money for quite long term,then surely think of this issue.
We can do one assumption that anyone have invested Rs.1 lakh in this issue  for 10 yrs and reinvest the annual interest received in fixed deposits with average  post tax interest rate of 7%.Then overall he will collect Rs.1,14,300 + Initial invested principal (1 lakh) = 2,14,300 (7.95% CAGR) after 10 yrs and after tax is paid .

 


Category: Fixed Income

Tagged: ,

One Response

  1. RAJENDRAN P says:

    Please inform whether NHAI tax saving bonds are available.

Leave a Reply

Advertisement:

Categories

Categories

Blog Archives

See How Much Interest Your Saving Have Generated!!!Final Value will be Original Principal + Interest generated

Blog Author

Blog Author

Who's Online

13 visitors online now
3 guests, 10 bots

Disclaimer

Information provided on this blog is for general purpose only & not investment advice.Please take advice of SEBI Registered Investment Advisors before taking any investment decision.
13 visitors online now
3 guests, 10 bots, 0 members
Max visitors today: 17 at 08:43 am UTC
This month: 34 at 08-17-2017 11:17 pm UTC
This year: 56 at 02-27-2017 10:53 am UTC
All time: 363 at 09-23-2016 05:45 am UTC
Thank You For Visiting This Blog!!!