FIXED INCOME

  • Capital Gain Bond
  • Sovereign Gold Bond
  • Floating Rate Bonds
Objective of Investment To save tax on capital gains arising from sale of assets like land, property etc. Investment to be done with 6 months of sale
Issuer (s) REC Ltd | PFC Capital Gain | Indian Railway Finance Corporation Limited (IRFC)
Interest Rate 5.00% p.a. taxable (w.e.f. August 1st, 2020)
Frequency of payment Annual
Tenure 5 years
Min. Investment Amount Rs. 20,000 for REC,PFC and IRFC 
Max. Investment Amount Rs. 50 Lacs
TDS No TDS on interest payable to Resident Investors
Credit Rating AAA by CRISIL, CARE, ICRA & IRRPL
Open / Close Dates Issue open; Closes on March 31st, 2023
Delivery of Bonds
 Client's demat a/c if application is being processed by NJ PSC. Client needs to mention his demat details on the application form.

 

Name of Bond Sovereign Gold Bond Scheme
Issuer Reserve Bank of India on behalf of the Government of India (GOI)
Type Of Instrument GOI Stock under GS Act, 2006. SGBs will be denominated in grams of gold.
Face Value / Issue Price (Rs.) / bond Price of Bonds shall be fixed in INR on basis of simple average of closing price of gold of 999 purity published by the India Bullion & Jewelers Association Ltd. for the last three working days of week preceding the subscription period. The issue price of the Gold Bonds will be Rs.50 per gram less for those who subscribe online and pay through digital mode.
Minimum Application Minimum permissible investment will be 1 unit (i.e. 1 gram of gold)
Maximun Application The maximum amount subscribed by an entity will not be more than 4,000 grams per person per fiscal year (April-March). A self-declaration to this effect will be obtained.
Tenure of the SGB 8 years with exit option from 5th year to be exercised on the interest payment dates
Interest Rate 2.50% p.a. payable semi-annually
Listing / Trading Bonds will be listed & tradable on exchanges/NDS-OM from a date to be notified by RBI
Mode of Issuance In Dematerialized Form only
Tax Treatment The interest on Gold Bonds shall be taxable as per the provision of Income Tax Act, 1961 (43 of 1961). The capital gains tax arising on redemption of SGB to an individual has been exempted. The indexation benefits will be provided to long term capital gains arising to any person on transfer of bond(s).
Eligible Investors Resident indian entities including Individuals, HUFs, Trusts, Universities and charitable institutions. SGBs are NOT open to NRIs.

 

Name of Bond Floating Rate Savings Bonds 2020 (Taxable)
Issuer Reserve Bank of India on behalf of the Government of India
Face Value / Issue Price (Rs.) / bond
 Rs 1,000
Minimum Application Rs.1,000 and in multiples of Rs.1,000
Maximum Application No maximum limit
Tenure 7 years
Frequency of Interest payment Half yearly - January 1st & July 1st
Listing / Trading Bonds are not transferable. No exit option available in the secondary market.
Tax Treatment Interest is taxable. Tax will be deducted as per prevailing rules of the Income Tax Act, 1961
KYC Documentation 1. Photocopy of PAN Card of all holders (self certified)
3. Address Proof (self certified)
2. Cancelled cheque copy of the 1st holder (self certified)
Eligible Investors Resident Indian Individuals (incl. Minors) & HUFs only

 

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