BONDS
Bonds are a better solution for investors looking for a fixed and high-interest rate for a specified period. It carries a low risk with better interest rates and tax benefits. Bonds are ideal for long-term investments.
Sovereign Gold Bonds
Sovereign gold bonds are government securities denominated in grams of gold. These are issued by RBI on behalf of Government of India. They are substitutes for holding physical gold with a tenure of 8 years.
Investment Limit per financial year:
For individual & HUF: Minimum 1 Gram, Maximum 4 kg
For trusts & other institutions: Minimum 1 Gram, Maximum 20kg
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Guaranteed by the Government of India -
Zero Risk of Handling of Physical Gold -
Appreciation of Gold & 2.5% interest p.a. -
No Tax on Capital Gain if held till Maturity
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Available in DMAT mode -
Tradable on NSE/BSE -
No Annual Management Fees -
Can be used as a collateral for trading
Capital Gain bonds (54EC Bonds)
54EC or Capital Gain bonds are one of the best ways to save tax on Long Term Capital gains made on the sale of land or building or both. Capital Gain tax can be avoided by investing in capital gain in these bonds under section 54EC of Income Tax Act, 1961. 54EC Bonds are non-transferable and have a lock-in period of 5 years. Minimum investment in 54EC bonds is one bond amounting to Rs. 10,000 and maximum limit is 500 Bonds amounting to Rs. 50 Lakhs in a financial year.
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Capital Gain Tax Saving under section 54EC -
Safe and Secure with AAA Rating
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5% Interest Payable Annually -
Investment Period 5 years
Various Capital Gain bonds
PFC – 54EC Bonds
Coupon Payment Every Year on 31st July
REC – 54EC Bonds
Coupon Payment Every Year on 30th June
IRFC – 54EC Bonds
Coupon Payment Every Year on 15th October
NHAI – 54EC Bonds
Coupon Payment Every Year on 31st March
RBI Bonds
The RBI Bonds have a tenor of 7 years and normally have a rate of interest better than bank FD. The interest rate on RBI bonds is flexible which is reset in 6 every month. Though the interest rates on RBI Bonds are 7.15%, most large banks have FD rates between 4-6%. These bonds are not available in DMAT mode. These are non-transferable and can not be redeemed before maturity.
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Issued by Reserve Bank of India -
Tenure 7 Years -
Minimum amount ₹1000
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Rate of Interest higher than bank FD -
Interest paid in every 6 Months -
No Maximum amount limit
