PFC’s infrastructure bonds were offered for ten and fifteen years, and the company is now planning to buy back the bonds with shorter maturities, which will complete the minimum lock-in in April 2016. The buyback offer has an annual interest rate of 8.3 percent, which is 20 basis points lower than the bond coupon.
What is the procedure for redeeming infrastructure bonds?
Bonds are redeemed Registered bondholders relinquish their legally discharged bond certificates (by signing on the reverse of the bonds with a Revenue Stamp of Re. 1/-) on the date of maturity. The redemption record date is one month before the deemed encashment / redemption date.
How can I purchase infrastructure bonds in 2021?
If you have a demat account, you can apply to invest in an infrastructure bond online. You must complete an online application form.
These relationships can be applied for in a physical form. You’ll need a PAN card that has been self-attested. As part of the KYC (Know Your Customer) procedure, you must provide proof of identity and address.
After the lock-in period has expired, these bonds can be exchanged on stock exchanges like stocks.
When a bond reaches maturity, how do you redeem it?
Your link has finally matured after three decades of waiting. If you wish to cash in your bonds, you must follow specific requirements depending on the type of bond you have (paper or electronic).
- You can cash electronic savings bonds on the TreasuryDirect website, and you’ll get your money in two days.
- Most major financial institutions, such as your local bank, accept paper savings bonds.
If you can’t find your fully matured paper savings bond, you can have it electronically replaced by going to the TreasuryDirect website and filling out the necessary papers.
You’ll need the serial number of the bond, which serves as a unique identity. If this isn’t accessible, you’ll need other information, such as the exact month and year the bond was purchased, the owner’s Social Security number, and the names and addresses of the bond’s owners. Even if you’ve misplaced the bond, it’s possible to find it with a few efforts.
You can keep your bond after it matures, but you will not get any extra interest. On the one hand, because you can’t spend a savings bond without redeeming it, the value of your bonds is considered “secure.” On the other side, if your bond isn’t redeemed, you’ll miss out on additional sources of interest. With current inflation rates, it doesn’t make much sense to hold a bond that pays nothing and is losing money to inflation every day.
Finally, regardless of whether you redeem your bonds or not, you will owe taxes on them when they mature. In the year of maturity, make sure to include all earned and previously unreported interest on your tax return. If you don’t, you may be subject to a tax penalty for underpayment.
In India, what are tax-free bonds?
A government entity issues tax-free bonds to raise revenue for a specific purpose. Municipal bonds, for example, are a type of bond issued by municipalities. They have a fixed rate of interest and rarely default, making them a low-risk investment option.
The most appealing aspect, as the name implies, is the absolute tax exemption on interest under Section 10 of the Income Tax Act of India, 1961. Tax-free bonds often have a ten-year or longer maturity period. The money raised from these bonds is invested in infrastructure and housing initiatives by the government.
What is the procedure for obtaining REC bonds?
These Capital Gain bonds can be purchased directly the NHAI/REC or from registered bond dealers. There is no way to buy these bonds online, so you’ll have to go to their office and fill out a paper form.
How do I purchase capital gains tax bonds via the internet?
This post will show you how to apply for 54EC Capital Gains Tax Exemption bonds online and pay using net banking or debit card, either through a broker or directly.
I intend to sell our previous residence. I’d like to put money into 54EC bonds. Is there a way to invest over the internet? I don’t want to reinvest in property and I also don’t want to pay taxes, thus I want to invest this money Amol Chavan
Our Answer: 54EC bonds are designed for investors who want to make long-term capital gains. You can obtain a tax break on long-term capital gains by investing in these bonds. They are known as 54EC bonds because they qualify for a tax deduction under section 54EC of the Income Tax Act.
The investor should have the following information and documents in PDF format ready before we begin the online process.
Karvy offers three bond issuers the ability to invest in 54EC bonds online.
1. Select the “For the bond issuer you like, click the “Fill a New Form Online” button.
2. Complete and submit the online application form.
3. Upon successful application submission, you will receive an SMS.
4. Fill out the application form completely.
5. Print the aforementioned form and have all applicants certify their signatures (s).
6. Scan the application copy, which has been signed by all applicants, and save it as a PDF.
7. Select the “Upload Application/KYC Documents” option should be selected.
8. To validate the application form, enter the following application details as they were supplied online.
9. Make a click “To receive an OTP on your email and mobile, click the “Get OTP” button.
10. Click on the OTP that was sent to your phone or email address “Verify.”
11. The application information will be displayed after validation.
12. To proceed with payment, please upload the following valid PDF documents.
13. Payment will be enabled once the above documents have been uploaded.
14. Use Netbanking or a Debit Card to make a payment.
15. Whether the payment is successful or unsuccessful, an acknowledgement will be prepared and sent through email.
Here is a little tutorial for investors who want to accomplish everything from application to payment without using a broker. The procedure for REC bonds has been described. Others, such as PFC and IRFC, go through a similar procedure.
1. Click here to download the REC bond form
2. Select the ‘direct’ option on the download page.
3. Enter the captcha after selecting the quantity of forms to download.
4. A ZIP file containing the form pack will be downloaded.
5. Once you’ve unzipped the file, you’ll see a PDF of the actual form (marked as private and confidential).
6. Complete the form and gather the necessary documentation on your own.
7. Investors must submit the completed Application Form, along with a Demand Draft or account payee cheque payable to “REC Ltd- 54EC” or “Rural Electrification Corporation Limited 54EC Bonds” and the required enclosures, to the designated branches of collecting banks Axis Bank, Canara Bank, HDFC Bank, ICICI Bank, IDBI Bank, IndusInd Bank, or Union Bank.
You can also make a direct NEFT/RTGS deposit into the REC collection account and fill out the application forms found on the REC website, making sure to include the UTR number in the box provided. Here are the bank account details for transferring funds.
G 3/4, 19 K G Marg, Surya Kiran Building, New Delhi 110001 is the branch address.
8. Visit http://www.recindia.nic.in/capital-gain-tax-exemption/ or call RTA/REC Investors Services Cell at 011-43091527 or 011-24361320 for allotment/ servicing status or any other information.
Is it possible to redeem NHAI bonds before they expire?
*In January 2019, I sold my flat and in July 2019, I invested in NHAI bonds under Section 54EC. Is it possible for me to make a premature withdrawal and purchase a new apartment?
Section 54EC states that if a taxpayer invests his long-term capital gains in certain bonds (such as NHAI bonds), the amount of capital gains is exempt up to a monetary limit of Rs 50 lakh. The amount of capital gains arising from the transfer of original assets that were not charged to tax will be deemed to be the long-term capital gains of the previous year in which specified assets are transferred and will thus be brought to tax.