Salient features of NABARD bonds attract a large number of investors. National Bank for Agriculture and Rural Development or NABARD is the leader in the field of agricultural credits and other economic activities in rural India. NABARD capital gain bonds offer alluring interest rates There also remain certain tax-exemption facilities associated to these NABARD Bond. NABARD Bonds are non-negotiable and non-transferable. Still demand of these bonds are pretty high across India as there remain tax exemption facilities. The interests offered by NABARD bonds are mainly Half-yearly,annual and cumulative interests.
There are specific rules and regulations associated to NABARD bonds and before investing,it is worth to have a clear overview of the different rules,regulations,terms and conditions of the NABARD Bonds. For each application,one consolidated certificate is issued to the applicant as a proof of acceptance.
The three types of interests offered by NABARD are mentioned below:
Half -yearly:In case of half-yearly interests,interests are paid on 1st April and 1st March
Annual:In case of annual interest payment,interests are offered to the investors on 1st April.
Cumulative:In case of cumulative interests,interests are compounded annually.
Though there are different interest rates as per different investment options,the interest rates usually range between 5.13% to 5.50%.Interest rates are highly variable,Capital gain bonds offered by NABARD came with an interest rate of 7%.
No TDS on interest as Capital Gains Bond is notified under Section 193(iib) of Income Tax Act, 1961 except in case of NRI Investors where it will be deducted under Section 195 of Income Tax Act, 1961.
For purchasing a NABARD bond,a subscription of minimum Rs10,000 is required. Thereafter, it is possible to buy in multiples of Rs10,000.NABARD bonds with a tenure of five years have lock-in periods of 3 years and the 7 years bonds come with a lock-in period of 5 years. Mode of redemption is hassle free,the redemption amount is credited in the investor's bank account when the investor applied for Electronic clearing system(ECS),otherwise the redemption warrant is sent to the investor through registered post. For potential investors, serious analysis is required while investing in NABARD tax-savings bonds.
There are specific rules and regulations associated to NABARD bonds and before investing,it is worth to have a clear overview of the different rules,regulations,terms and conditions of the NABARD Bonds. For each application,one consolidated certificate is issued to the applicant as a proof of acceptance.
The three types of interests offered by NABARD are mentioned below:
Half -yearly:In case of half-yearly interests,interests are paid on 1st April and 1st March
Annual:In case of annual interest payment,interests are offered to the investors on 1st April.
Cumulative:In case of cumulative interests,interests are compounded annually.
Though there are different interest rates as per different investment options,the interest rates usually range between 5.13% to 5.50%.Interest rates are highly variable,Capital gain bonds offered by NABARD came with an interest rate of 7%.
No TDS on interest as Capital Gains Bond is notified under Section 193(iib) of Income Tax Act, 1961 except in case of NRI Investors where it will be deducted under Section 195 of Income Tax Act, 1961.
For purchasing a NABARD bond,a subscription of minimum Rs10,000 is required. Thereafter, it is possible to buy in multiples of Rs10,000.NABARD bonds with a tenure of five years have lock-in periods of 3 years and the 7 years bonds come with a lock-in period of 5 years. Mode of redemption is hassle free,the redemption amount is credited in the investor's bank account when the investor applied for Electronic clearing system(ECS),otherwise the redemption warrant is sent to the investor through registered post. For potential investors, serious analysis is required while investing in NABARD tax-savings bonds.
