• Open an A/C
    • Open an A/C
    • CHOOSE YOUR OPTION(S)
    • Trading A/c
    • Mutual Fund A/c
    • NBFC A/c
    • NPS A/c

Home  > Products > Distribution > Online Bonds

  • Know More
    About Bonds

About Bonds

  • A Bond is a debt instrument issued for the purpose of raising capital by borrowing.
  • Bonds can be issued by companies, financial institutions or the government. Bonds issued by the government are considered the safest bonds.
  • Bonds can be divided into different categories based on tax status, credit rating, issuer type and maturity.
  • Bonds are suitable for regular income purposes.
  • Specific tax saving or tax free bonds are available that offer certain tax benefits to the investor.

7.75% RBI Taxable Bonds

  • The 7.75% Government of India Savings (Taxable) Bonds, 2018 is a bond issued by the Reserve bank of India (RBI) commencing April 21, 2003. The bonds are available for Individuals & HUF. As the name indicates, the rate of interest offered on the bonds is 7.75% per annum. Interest on bonds is taxable and it has a lock in of 7 (seven) years. Since bonds are issued on behalf of Government of India, it is the safest investment any investor can look for.

Tenure ROI(%) P.A Issue Price Compounding
7 Years 7.75% Rs.1000 Half Yearly
DOWNLOAD FORM
Salient Features
  • Eligibility for Investments
  • The Bonds may be held by An individual, not being a Non-Resident Indian (NRI) , A Hindu Undivided Family.
  • Limit of Investment
  • There will be no maximum limit for investment in the Bonds.
  • Tax Treatment
  • 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. (+)
  • Issue Price
  • The Bonds will be issued at par (+)
  • Subscription
  • Subscription to the Bonds will be in the form of Cash/ Drafts/ Cheques or any electronic mode acceptable to the receiving office (+)
  • Nomination
  • A sole holder or all the joint holders (investors) of a Bond, being individual/s, may nominate in Form B annexed to this notification (Annexure 4) or as near thereto as may be, one or more persons who in the event of death of the sole holder/all the joint holders, as the case may be, would be entitled to the Bonds and to the payment due thereon, provided that the person or each of the persons nominated is himself/herself is competent to hold the Bond. (+)
  • Transferability
  • The Bonds held to the credit of Bonds Ledger Account of an investor shall not be transferable.
  • Interest
  • The Bonds will be issued in ‘Cumulative’ or ‘Non-cumulative’ form, at the option of investor and will bear interest at the rate of 7.75% per annum. (+)
  • Tax Deduction at Source
  • Tax will be deducted at source while making payment of interest on the Non-Cumulative Bonds from time to time and credited to Government Account. (+)
  • Repayment
  • The Bonds shall be repayable on the expiration of 7 years from the date of issue. (+)

Capital Gain Bonds

  • In accordance with section 54 EC of the Income Tax Act, 1961, all categories of tax payers would be eligible to save tax in respect of long term capital gains by making investments in certain Bonds prescribed.
  • These bonds are classified as 'long-term specified asset' and are issued by REC, NHAI, PFC and IRFC.
  • These bonds are specifically for investors who have made some long term capital gains, and would like to save capital gain taxes on this amount.
  • Only long term capital gains are eligible for these bonds though, and short term gains are not covered under section 54EC.
  • The interest from these bonds is fully taxable

Condition for Exemption from Tax U/S 54 EC:

  • The entire capital gain realized is invested within 6 Months of the date of transfer in eligible bonds
  • Such investment is held for 5 Years
  • To avail of capital gain exemption, the bonds so acquired cannot be transferred or converted into money or any loan or advance can be on security of such bond with 3 years from date of acquisition else, the benefit would be withdrawn.
  • If the amount invested in bonds is less than the capital gains realized, only proportionate capital gains would be exempt from tax.

REC Capital Gains Bonds

  • Rural Electrification Corporation Limited (REC) is a Navratna Company functioning under the purview of the Ministry of Power.
  • It’s a public Infrastructure Finance Company in India’s power sector.
  • The company finances and promotes rural electrification projects across India.
  • The company provides loans to Central/ State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers.
  • The company is listed on both National Stock Exchange and Bombay Stock Exchange.
  • Business operations in India are supported by a network of 13 Project Offices and 5 Zonal Offices, headquartered in New Delhi.

Rural Electrification Corp Bonds

Company Name Rating ROI (%) Tenure Minimum Application Maximum Application Tax Status Transferability Mode of Interest Interest Payable on
REC AAA 5.75% 5 years 20000
(2 bonds)
5000000
(500 Bonds)
Taxable Not Allowed Annually 30th June
DOWNLOAD FORM

NHAI Capital Gain Bonds Series XII

  • National Highways Authority of India (NHAI) is an autonomous agency of the Government of India, responsible for management of a network of over 50,000 km of National Highways out of 1,15,000 km in India.
  • It is a nodal agency of the Ministry of Road Transport and Highways.
  • NHAI has signed a memorandum of understanding (MoU) with the Indian Space Research Organization for satellite mapping of highways.
  • The Authority was operationalized in February, 1995 .
  • The company is listed on both National Stock Exchange and Bombay Stock Exchange

National Highway Authorty of India Bonds

Company Name Rating ROI (%) Tenure Minimum Application Maximum Application Tax Status Transferability Mode of Interest Interest Payable on
NHAI AAA 5.75% 5 years 10000
(1 bond)
5000000
(500 Bonds)
Taxable Not Allowed Annually 1st April
DOWNLOAD FORM

PFC Capital Gain Bonds Series I

  • The Power Finance Corporation Ltd. Incorporated on July 16th, 1986, Company was conferred the title of a 'Navratna CPSE' in June, 2007 and it’s a leading Non-Banking Financial Corporation in the Country.
  • It is the financial back bone of Indian Power Sector.
  • PFC's registered office is located at New Delhi and regional offices are located at Mumbai and Chennai.
  • It’s a consistently profit-making and dividend-paying company & also Strong asset quality reflected in low NPAs in the company.The company is listed on both National Stock Exchange and Bombay Stock Exchange

Power Finance Corporation Capital Gain Bonds Series I

Company Name Rating ROI (%) Tenure Minimum Application Maximum Application Tax Status Transferability Mode of Interest Interest Payable on
PFC AAA 5.75% 5 years 20000
(2 bonds)
5000000
(500 Bonds)
Taxable Not Allowed Annually 31st July
DOWNLOAD FORM

IRFC Capital Gain Bonds Series I

  • Indian Railway Finance Corporation (IRFC) was set up on 12th December, 1986 as the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets.
  • IRFC is a Schedule ‘A’ Public Sector Enterprise under the administrative control of the Ministry of Railways, Govt.
  • In more than 30 years of existence, IRFC has played a significant role in supporting the expansion of the Indian Railways and related entities by financing a significant proportion of its annual plan outlay.
  • Company raises money through financial bonds and from banks and financial institutions.

Indian Railway Finance Corporation Capital Gain Bonds Series I

Company Name Rating ROI (%) Tenure Minimum Application Maximum Application Tax Status Transferability Mode of Interest Interest Payable on
IRFC AAA 5.75% 5 years 20000
(2 bonds)
5000000
(500 Bonds)
Taxable Not Allowed Annually 15th October
DOWNLOAD FORM

Why SMC?

At SMC, we believe in growing with our clients and creating valuable relationships. It’s about having the passion to go that extra mile and it’s about making the clients and partners a part of the family.

serving over
18 Lac
unique clients
Workforce of
3000+
employees
Presence in500+ cities & oversease offices in Dubai
large network of
2,500+ sub-brokers & authorised persons
Cumulative AUM under Mutual Funds 3,000+ crores
Reasons to choose SMC as your preferred broker
  • Wide Range of Financial Product and Services
  • Advanced charts on trading platforms with built in historical data
  • Online Trading on Smart Phone and Tablets
  • Award Winning and Reputed Brand
  • Dedicated Trading and Research Desk
  • Auto Trender – Specialized Technical tool
  • Competitive Brokerage Rate

Follow us:

Disclaimer: Investment in securities and commodities market are subject to market risks, read all the related documents carefully before investing. SMC Global Securities Ltd. (CIN : U67120DL1997PLC188881): NSE INB/ INF/INE 230771431, BSE INB/INF 011343937, MSEI INB/INF 260771432, CDSL/NSDL-IN-DP-130-2015, SMC Research Analyst Registration- INH 100001849 I SMC Comtrade Ltd.: NCDEX/MCX (8200)/ NMCE/ICEX-INZ000035839 I SMC Investments and Advisors Ltd.: PMS INP000003435 I SMC Insurance Brokers Pvt. Ltd., IRDAI Regi: No: DB 272/04, License No. 289 Valid upto 27/01/2020 I Registered Office: 11/6B, Shanti Chamber, Pusa Road, New Delhi-110005, Tel.: (011) 30111000. For any complaints email – igc@smcindiaonline.com, website: www.smctradeonline.com

Insurance is the subject matter of solicitation • All insurance products sold through SMC Insurance Brokers Pvt. Ltd. • Investment Banking Services provided by SMC Capitals Ltd. • Equity PMS and Wealth management services provided by SMC Investments & Advisors Ltd. • IPOs and Mutual Funds distribution services are provided by SMC Global Securities Ltd. • Financing Services provided by Moneywise Financial Services Pvt Ltd. • Commodity broking services provided by SMC Comtrade Ltd. • Real Estate Advisory services are offered through SMC Real Estate Advisors Pvt. Ltd.

OUR OTHER WEBSITES Go
IMPORTANT LINKS Go
QUICK LINKS
Go

Toll-free : 1800-11-0909
Email: contact@smctradeonline.com

Sitemap
 
Copyright ©2016 SMC. All Rights Reserved | Disclaimer | Privacy Policy | RMS Policy | Copyright| Testimonials| Sitemap| Grievance| design agency: triverse| Powered by C-MOTS Infotech (ISO 9001:2015 certified)
Open An Account

Open my trading account now!  X 

* All fields are compulsory