Saving Bonds

Hello, I want to know the details of the savings bonds that are available in India as I want to buy.

[Pathak]

Hello, here I am providing you the details of the savings bonds that are available in India as under:

Bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) to use and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals (ex semi annual, annual, sometimes monthly).

Tax savings:
In India, the following sections of the Income Tax Act of 1961 state the exemptions and benefits that are to be provided to the tax saving bonds:
80C
80CCF
80CCC
54EC
80CCD

Top saving bonds:
RBI Relief Bonds
The minimum investment limit for these bonds, issued by the RBI, is INR 1000 and the interest of these bonds is compounded every 6 months. These bonds have a maturity period of 5 years and the interest earned on these bonds is tax free.

IDFC Infrastructure Bonds
Each IDFC infrastructure bond has a face value of 5000 rupees and the minimum investment limit is INR 10 thousand. Interest can be received after maturity or on an annual basis.

Infrastructure Bonds
Infrastructure bonds provided by leading private sector banks such as ICICI are extremely popular among investors. L&T Infrastructure Finance Company is supposed to come out with the L&T Infra's Long Term Infrastructure Bonds.

NHAI/REC Bonds
The NHAI/REC bonds offer tax benefits as stated under the Section 54EC of the Income Tax Act of 1961. Tax payers can save taxes if they invest capital gain derived from transferring a long term capital asset in REC or NHAI bonds.