HUDCO – wholly owned by Govt of India, is mandated to build affordable housing & to carry out urban development.It provides long term finance for construction of residential houses & urban development programmes in the country.
HUDCO will come up with public issue of tax free bonds in January 2016 & it will issue tax free bonds of worth Rs.1711.50 crores.
Details of HUDCO Tax Free Bonds January 2016:
Important Dates:
- Issue open date:January 27, 2016.
- Issue close date:Feb 10, 2016.
Coupon rates:
Other details:
- Credit rating : “AAA” from IND & CARE which indicates highest safety of issue.Last yr rating was AA+.so there is credit rating improvement for HUDCO tax free bonds.
- NRIs are not eligible to apply.
- Listing will be at BSE only.
- Interest received will be annually and it will be tax free.As interest is tax free there is no question of tax deduction at source.
- Can invest in demat as well physical mode.If investor have demat account then better to invest in demat mode.
Tax free bonds is good option for safe,periodic,long term interest income.Its not great investment option for young earning individuals as there is no cumulative option.Such investors can prefer to choose PPF rather than tax free bonds.Tax free bonds also superior to immediate annuities offered by insurance companies as annuities are taxable in nature.
So if you have good cash to invest and want safe,long term periodic income then invest in HUDCO tax free bonds which will open on January 27, 2016.
