Read expert opinions, top news, insights and trends on the economic times. Tax free bonds are issued by government enterprises where the interest is tax free. These bonds are called as tax free as interest received from these bonds will be free from income tax and wont be part of any income. You can download various forms details pertaining to bonds as mentioned below. Tax benefits us 10 15 iv h of the income tax act, 1961 interest on these bonds shall not form part of total income. Bond refers to a security issued by a company, financial institution or government, which offers regular or fixed payment of interest in return for. Income tax rec tax free bonds issue is likely to open on 6th march 2012. Bonds to be allotted in dematerialized form as well as in physical form. Rec opens its public issue of tax free secured bond.
Download rec tax free bonds 2015 issues application form for nris. Capital gain bonds which help in saving capital gains tax are issued by. Budget 2018 has proposed to amend the 54ec section of the income tax act wherein capital gains arising only from the sale of assets such as land or building or both will be considered for tax. What listing gains can i expect if i flip these bonds upon issue. The national highways authority of india was constituted by an act of parliament, the national highways authority of india act, 1988. Why taxfree bonds could be your best debt bet this year the. Security isin number details face value issue date maturity date interest rate int payment date putcall option security isin number details face value issue date maturity date interest rate int payment. Nri can also participate and invest in rec tax free bonds.
Bond name details download form resident download form nris. Save tax on longterm capital gains by investing in 54ec bonds such as rec capital gain bonds, nhai capital gain bonds respectively. The income that you earn in tax free bonds in the form of interests is. As readers may aware that certain psus have allowed to launch tax free bonds in the year 20 2014 and rec a psu engaged in the sector of power distribution power transmission have launched first issue of tax free bonds. Download rec 54ec capital gains bonds application form year 201920 for tax saving bond with 5. Download application forms to invest in tax free bonds. Rec rural electrification corporation limited, a government of india company is issuing its tax free bond. Rec tax free bonds will be listed on bse and can be traded in the secondary market. Submit article calculators downloads income tax deductions empanelment exam tips. The bond is poised to make its public appearance on 30th august 20 and the interest rates on offer for the 10 year, 15 year and 20 year terms are 8. If you want to buy the bonds in the demat form, you need to have a demat account.
The income by way of interest on rec tax free bonds is exempt from income tax and shall not form part of total income as per provisions under section 10 15 iv h of it act. Iifcl tax free bonds synergee capital services pvt ltd. It is advisable that the investors keep a photocopy of the submitted application form. Rural electrification corporation limited opens its public issue of tax free bonds of the facevalue of 1,000 each aggregating up to a total of 3,000 crores. Thus, only the amount invested is exempted from capital gains tax. Rec capital gain bond application form 20202021 mutualfunds. Interest income earned on tax free bonds is exempted from taxes.
There have been series of tax free bonds in last two months from likes of hudco, iifcl, rec, pfc and irfc. Rural electrification corporation limited tax free. To download the rec 54ec bond application form, click hereclick here. Rural electrification corporation rec has come out with an issue of rs 700 crores. The rec tax free bonds are rated aaa and are hence very secure. The issue opened on 30 august and will remain open till 23. You can sell this tax free bonds on the secondary market, however, you need to pay capital gain tax. The income by way of interest on these bonds is fully exempt from income tax under section 1015ivh of the income tax act, 1961 and shall not form. Find forms, form instructions, and publications for tax exempt bonds in one convenient place. Buy tax free, tax saving bonds online download bonds. Rec tax free bonds can be hold in demat as well as physical form. Taxfree bonds were issued in the financial years 2012, 2014 and 201415 with tenures of 10, 15 and 20 years, respectively. Irfc capital gain bond, irfc 54ec capital gain bonds application form series iv, download, na. Rec t ax free bond application form linkedin slideshare.
Roi, rating, proposed listing, face value, download form, other particulars. Get the current price of rural electrification corporation ltd recltdn6 in nsebse. Rec limited formerly rural electrification corporation limited is a navratna company under the administrative control of the ministry of power. The interest that is earned on these bonds is liable to income tax. Akfsrrec20121921dated february12, 20, has assigned a. Form 14429 tax exempt bonds voluntary closing agreement.
There is a lot of interest from resident indians and non resident indians alike for parking bulk of their funds into tax free bonds various organizations, like hudco housing and urban development corporation, pfc power finance corporation, rec rural electrification corporation, nhb national housing bank among many others have floated tax free bonds. Rural electrification corporation limited rec 54ec cgte bonds series xiv fy 202021. Ltd rec has entered the market with its first tranche of tax free bonds for the financial year 20 14. Commission will be paid on receivable basis and as per the data received from the lead managers and registrar to the issue. The bond is poised to make its public appearance on 30th august 20. Tax free bonds from rural electrification corporation rec is such a feelgood news which is sure to put some enthusiasm back in investors. Tax free bonds shelf prospectus for public issue of tax free bonds. The interest rates on the rec tax free bonds are perhaps the highest for a tax free bond issue seen in recent years, which makes the issue a must subscribe for those paying higher taxes. Bond refers to a security issued by a company, financial institution or government, which offers regular or fixed payment of interest in return for borrowed money for a certain period of time. The issue opens on october 27, 2015 and closes on november 4, 2015. Tax deduction is available under section 54ec of the income tax act. Tax benefits us 10 15 iv h of the income tax act, 1961 interest on these bonds shall not form.
Since the interest income on the bonds is exempt, no tax. Rural electrification corporation limited tax free bonds. Consequently, the shelf limit was reduced to rs 4,500 crores. Rec tax free bond 2014 sanriya investment advisors. Download rec tax free bonds 2015 issues application form for resident indians. Irfc, pfc had come out with its tranche ii of tax free bonds and now rec rural electrification corporation limited too has come out with tranche ii of tax free bonds which would be open for subscription between february 25 till march 15, 20. Rec limited funds their business with market borrowings of various maturities, including bonds and term loans apart from foreign borrowings and provides financial assistance to the power sector in all segments i. Income tax the bonds are issued in the form of taxfree, secured, redeemable, nonconvertible bonds.
Buy capital gain bonds online india download bond application. Rural electrification corporation ltd recltdn6 nse. Rec limited funds their business with market borrowings of various maturities, including bonds. The freely available adobe acrobat reader software is required to view, print, and search the. Mode of allotment in dematerialised form to all applicants and in physical form, at the option of applicants other than qfis. Recs tax free bonds an opportunity you should not miss.
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