A sole holder or all the joint holders may nominate one or more nominees to the rights of the bonds.
Non-resident Indians can also be nominated.
The existing nomination can be cancelled by a request to the Office of Issue.
Nomination facility is not available in case the investment is in the name of a minor.
In case nominee is a minor, please indicate the date of birth of the minor and a guardian can be appointed.
Interest on the Bonds will be taxable under the Income-tax Act, 1961.
10% Tax will be deducted at source while interest is paid.
If an exemption under the relevant provisions of the Income Tax Act, 1961 is obtained, it may be declared in the Application Form.
Applicants who have obtained exemption from Income Tax shall make a declaration to that effect in the application (in Form 'B') and submit a true copy of the certification obtained from Income Tax Authorities.
The Bonds will be issued only in the electronic form and held at the credit of the holder in an account called Bond Ledger Account (BLA), opened with the Receiving Office.
A certificate of holding will be issued to the holder/s of Bonds as a proof of subscription.
Payment Frequency - The interest on the bonds will be payable at half yearly intervals on Jan 1st and July 1st every year.
Rate - The coupon/interest of the bond would be reset half yearly starting with Jan 1st, 2021 and thereafter every July 1st and Jan 1st. The coupon rate for first coupon period, payable on January 1, 2021 is fixed at 7.15%.
Base Rate - The coupon rate will be linked/pegged with prevailing National Saving Certificate (NSC) rate with a spread of (+) 35 bps over the respective NSC rate.
Age Bracket | Premature Encashment | Lock-in Period | Bond Surrender Period | Penalty Charges |
---|---|---|---|---|
Below 60 Years | Not Elighible | 7 Years | NA | NA |
60 to 70 Years | Elighible | 6 Years | After 12th interest payment | 50% of last coupon payment |
70 to 80 Years | Elighible | 5 Years | After 10th interest payment | 50% of last coupon payment |
80 Years and above | Elighible | 4 Years | After 8th interest payment | 50% of last coupon payment |