PFC Bond holders who have not redeemed their bonds or received interest should contact the Registrar to the Issue or the PFC Investor Cell using the information below:
Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal Hyderabad 500 032. Ground Floor, Karvy Selenium Tower B, Ground Floor, Karvy Selenium Tower B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally Mandal Hyderabad 500 032.
What is the procedure for redeeming an infrastructure bond?
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 do I get rid of my infrastructure bonds?
1) Government corporations offer tax-free bonds.
As a result, these ties are incredibly secure. Even if you wanted to keep them for 10-15 years, they would be secure.
2) Interest is not taxable.
In India, the interest on tax-exempt bonds is totally tax-free. This is one of the reasons why investors avoid selling tax-free bonds in India.
3) Devoid of defaults
As previously said, they are quite safe because they are given by the government. You can also look for the credit rating of government bonds that are issued from time to time.
4) Physical and demat modes are both possible.
Tax-free bonds are available in both demat and physical form. It’s vital to realize, however, that you can’t sell the bonds in their physical form on the secondary market through the country’s recognized stock exchanges.
5) Interest is paid on a yearly basis.
It’s worth noting that the bonds’ interest is paid yearly, which lowers the return when compared to other securities where interest is paid quarterly or monthly.
Today’s question isn’t how to sell tax-free bonds in the secondary market, but when and why to do so.
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.
In India, what are capital gain bonds?
Capital gain bonds, also known as 54EC bonds, are fixed income products that give investors with a capital gains tax exemption under section 54EC. By purchasing 54EC bonds, you can minimize your tax burden on long-term capital gains from the sale of immovable property.
The issuer’s debtholders or creditors are the bond’s owners. Infrastructure corporations that are backed by the government issue these bonds. As a result, by purchasing such bonds, the risk factor is reduced. The capital gain bonds can be redeemed at any time before they reach maturity. These bonds cannot be sold since they are not traded on a stock exchange. The interest rate has been cut to 5% p.a. from 6% p.a. and is fully taxable in your hands.
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.
What is the procedure for redeeming IFCI family bonds?
You must notify IFCI Ltd./ M/s MCS Ltd. (IFCI’s Registrar and Transfer Agent) of the loss by referring to your Folio No. and submitting an Indemnity Bond* on non-judicial stamp paper in an amount as applicable to your State, duly notarized. An affidavit on non-judicial stamp paper of 20/- shall be presented in lieu of the Indemnity Bond in the case of Loyalty Bond(s)**. A new redemption warrant will be issued after proper verification.