Question: Recently, on which date 7.75% savings (taxable) bond, 2018 commenced, launched by the Government of India?
(a) January 31, 2018
(b) January 10, 2018
(c) January 25, 2018
(d) January15, 2018
Answer- (b)
Related Facts:
- On January 4, 2018, Government of India has announced to launch of 7.75% Savings (Taxable) Bonds, 2018 commencing from 10thJanuary 2018 to enable resident citizens/HUF to invest in a taxable bond, without any monetary ceiling.
- The main features of the Bonds are:
- Who can invest: The Bonds are open to investment by individuals (including Joint Holdings) and Hindu Undivided Families.
- NRIs are not eligible for making investments in these Bonds.
- Subscription:Applications for the Bonds in the form of Bond Ledger Account will be received in the designated branches of agency banks and SHCIL in all numbering about 1600.
- Issue Price: The Bonds will be issued at par e. at Rs.100.00
- 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 1,000/- (Nominal).
- The Bonds will be issued in demat form (Bond Ledger Account) only.
- Period: The Bonds will beon tap till further notice and issued in cumulative and non-cumulative
- Limitof investment: There will be no maximum limit for investment in the Bonds.
- Tax treatment:
- Income-tax: Interest on the Bonds will be taxable under the Income-tax Act, 1961 as applicable according to the relevant tax status of the bond holder.
- Wealth tax: The Bonds will be exempt from Wealth-tax under the Wealth Tax Act, 1957.
- Maturity and rate of interest: The Bonds will have a maturity of 7 years carrying interest at 75% per annum payable half- yearly. The cumulative value of Rs. 1,000/- at the end of seven years will be Rs. 1,703.
- Transferability:The Bonds are not
- The Bonds are not tradeable in the Secondary market and are not eligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions.
- Nomination: A sole holder or a sole surviving holder of a Bond, being an individual, can make a nomination
Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=175293
http://www.businesstoday.in/current/economy-politics/7.75-savings-bonds-scheme-government-launch-taxable-tax-interest/story/267282.html