Details
There are two options under which investors can apply. The first option has a tenure of 10 years, and the interest payable is 8.2% per annum. The second option has a tenure of 15 years, with a higher interest of 8.3% per annum. Interest payment will be made annually on October 15, every year. The interest income is tax free in the hands of the investor and there is no deduction of tax at source. Each bond has a face value of . 1,000 and one can apply for a minimum of 10 bonds. There is no put or call option in any of the bonds. The bonds will be listed on the BSE. The bonds have been rated AAA by Crisil as well as Icra, which indicates highest degree of safety in terms of servicing of financial obligations. While 50% of the issue is reserved for institutions, 25% is reserved for HNIs and the balance 25% reserved for retail investors. Investments below and up to . 5 lakh will be considered as retail applications, while investments above . 5 lakh will be considered for allotment in the HNI category.
NHAI bonds score well for those in the highest tax bracket. So if you invest. 1 lakh in NHAI bonds, and are in the highest tax bracket, you will get an interest income of . 8,300 per annum for 15 years which is tax free. As against this, even if you earn a 9% interest on a bank fixed deposit and you are in the highest tax bracket (30.9%) you will earn an interest of . 9,000 per annum but will pay a tax of . 2,781, so the net interest you earn is only . 6,219, which is a yield of 6.22%
Tax-free interest of 8.3% is the highest available after PPF, and there is no upper ceiling on investment. Though PPF offers you an interest of 8.6%, it is subject to revision and the maximum amount you can invest is only . 1 lakh per annum.
Even though the bonds will be listed, one is not sure if there will be an active secondary market for these bonds. Hence, if you need the money in between, you may have no other way out.
How to apply to PFC Bonds?
Apply for PFC Tax Free Bonds forms below
Download PFC TAX Free Bond Application Forms
Submit the filled up form to Collection canter near you
How to apply to NHAI Bonds?
You can download the NHAI Tax Free Bonds forms below
Download NHAI Tax Free bond Application Forms
Submit the filled up form to Collection canter near you
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Application form for Tax Saving Long Term Infrastructure Bond
Current open Long Term Infra Bond Application form
Submit filled up application Collection canter near you
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Invest Tax Saving Mutual Funds Online
Download Tax Saving Mutual Fund Application Forms from all AMCs
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