Fnance Ministry Current Affairs - 2019
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The Union Finance Ministry has launched 7.75% Savings (Taxable) Bonds, 2018 scheme to help citizens invest in a taxable instrument, without any monetary ceiling. It will enable resident citizens/Hindu Undivided Families (HUF) to invest in a taxable bond, without any monetary ceiling.
Key features of Bonds
The Bonds are open to investment by individuals (including Joint Holdings) and HUFs. Non-Resident Indians (NRIs) are not eligible for making investments in these nonds.
The Bonds will be issued at par i.e. at Rs.100.00 They will be issued for minimum face value amount of Rs.1,000 and in multiples thereof. There will be no maximum limit for investment in the Bonds.
The Bonds will have maturity of 7 years carrying interest at 7.75% per annum payable half- yearly. The Bonds will be issued in demat form (Bond Ledger Account) only.
The Bonds are not transferable and also are not tradeable in secondary market. They are also not eligible as collateral for loans from banking institutions, non-banking financial companies or financial institutions.
Interest on the Bonds will be taxable under the Income-tax (IT) Act, 1961 as applicable according to the relevant tax status of the bond holder. However these Bonds will be exempt from Wealth-tax under Wealth Tax Act, 1957.