Fixed Deposit

8% Taxable Bonds

These Bonds are held in electronic form in an account called Bond Ledger Account (BLA). Bond Ledger Accounts can be opened and operated with RBI designated Receiving Offices.

Savings Bonds being sovereign in nature are absolutely safe and an attractive investment option in the current volatile market situation.


The following categories can subscribe to Savings Bonds :

Category of Investor	8.0% (Taxable)
Individual his or her individual capacity. individual capacity on joint basis. individual capacity on anyone or survivor basis On behalf of a minor as father/mother/legal guardian.	√
HUF (Hindu Undivided Family)	√
Charitable Institution Charitable Institution to mean a Company registered under Section 25 of the Indian Companies Act 1956. An Institution which has obtained a Certificate of Registration as a Charitable Institution in accordance with a law in force. Any institution which has obtained a certificate from Income tax Authority for the purposes of Section 80G of the Income Tax Act, 1961	√
University University means a University established or incorporated by a Central, State or Provincial Act and includes an Institution declared under section 3 of the University Grants Commission Act, 1956 to be a University for the purposes of that Act	√

Tax Treatment

(i) Income-Tax: Interest on the Bonds will be taxable under the Income-Tax Act, 1961 as applicable according to the relevant tax status of the bond holder. (ii) Wealth Tax: The Bonds will be exempt from Wealth-tax under the Wealth- Tax Act, 1957.
Minimum Amount The Bonds will be issued for a minimum amount of Rs. 1000/- & there is no maximum limit for investment.

Nomination

A sole holder or a sole surviving holder of a Bond, being an individual, may nominate, one or more persons who shall be entitled to the Bond and the payment thereon in the event of his/her death.

Transferability

The Bond in the form of Bond Ledger Account shall not be transferable.
Interest Payment : The bond will be issued in cumulative and non-cumulative form, at the option of the investor. The Bond will bear interest at the rate of 8% per annum. Interest on non-cumulative bonds will be payable at half-yearly intervals from the date of issue. Interest on cumulative bonds will be compounded with half-yearly rests and will be payable on maturity along with the principal. The maturity value of the Bonds shall be Rs.1601/- (being principal and interest) for every Rs.1,000/- Interest will be paid from date of issue up to 31st July / 31st January, as the case may be and thereafter at half-yearly for period ending 31st July/31st January on 1st August and 1st February.
The Bonds shall not be tradable in the secondary market and shall not be eligible as collateral for loans from banks, financial Institutions and Non Banking Financial Companies, (NBFC) etc.

Repayment

(i) The Bonds shall be repayable on the expiry of 6 (Six) years from the date of issue. No interest would accrue after the maturity of the Bond.

Government Schemes and Rates

General Insurance

Insurance other than ‘Life Insurance’ falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc.

Non-life insurance companies have products that cover property against Fire and allied perils, flood storm and inundation, earthquake and so on. There are products that cover property against burglary, theft etc. The non-life companies also offer policies covering machinery against breakdown, there are  policies that cover the hull of ships and so on. A Marine Cargo policy  covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business.

Personal insurance covers include policies for Accident, Health etc. Products offering Personal Accident cover are benefit policies. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis. The cashless service is offered through Third Party Administrators who have arrangements with various service providers, i.e., hospitals. The Third Party Administrators also provide service for reimbursement claims. Sometimes the insurers themselves process reimbursement claims.

Suitable general Insurance covers are necessary for every family. It is important to protect one’s property, which one might have acquired from one’s hard earned income. A loss or damage to one’s property can leave one shattered. Losses created by catastrophes such as the tsunami, earthquakes, cyclones etc have left many homeless and penniless. Such losses can be devastating but insurance could help mitigate them. Property can be covered, so also the people against Personal Accident. A Health Insurance policy can provide financial relief to a person undergoing medical treatment whether due to a disease or an injury.

For more information please contact us