National Housing Bank (NHB) has come out with a tax free bond issue. The issue size is 250 crore rupees and can take over subscription upto 1000 crore rupees.
The bond is open for subscription from 7th March and the issue closes on 18th March. The face value of the bond is Rs 5000/-. Mode of allotment: Physical and DEMAT.
Credit Rating agencies – CRISIL, ICRA and CARE have assigned “CRISIL AAA/Stable”, “[ICRA] AAA (Stable)” and “CARE AAA” to this issue.
For Non-Retail (Category I, II & III)
8.25% p.a. For 10yrs,
8.68% p.a. For 15yrs
8.65% p.a. For 20yrs
For Retail (Categoty IV):
8.5% p.a. For 10 yrs
8.93% p.a. For 15 yrs
8.9% p.a. For 20yrs
The other issue which is open in the market is IRFC which has a bit of lower rate compared to NHB.
Should you subscribe?
Yes one can consider investing in these bonds as the yields are high compared to post tax yields of a corporate deposits.
Income from these bonds in form of interest is fully exempted from income tax. Also it attracts no TDS. Capital gains are taxable.
Fill in the details here – click here & you will get the forms via. email.