govt of India 7.75 saving Bond

What’s the product all about?

You will get some exclusive features and benefits with your 7.75% Savings Bonds

  • Minimum investment of Rs.1,000 and no maximum limit on investment
  • 7 years tenure of the bond from the date of issue
  • Choose from Half Yearly Payable interest and Cumulative interest
  • 7.75 %p.a. rate of interest
  • No income tax exemption available
  • However, the bonds will be exempt from Wealth-Tax under the Wealth-Tax Act, 1957.

Eligible for the 7.75% Savings (Taxable) Bonds?

You can apply for the 7.75 % Savings (Taxable) Bonds if you are:

  1. An Individual, not being a Non Resident Indian
  • In his or her individual capacity or
  • In individual capacity on joint basis or
  • In individual capacity on anyone or survivor basis or
  • On behalf of a minor as father/mother/legal guardian
  1. A Hindu Undivided Family

Have Questions?

Are the 7.75 % Savings (Taxable) Bonds transferable?
No, these bonds are not transferable.

What bond options are available?
You can choose from cumulative and non-cumulative bond options.

What is the minimum and maximum limit for investment in the 7.75% Savings (Taxable) Bonds?
The Bonds will be issued for a minimum amount of Rs. 1000/- (face value) and in multiples thereof. There will be no maximum limit for investment in Bonds.

What is the tenure of the 7.75% Savings (Taxable) Bonds?
The tenure of the bond is 7 years from the date of issue. No interest will accrue after the maturity of the bond.

7.75% Savings Bonds

Is a nomination facility available?
Yes, a nomination facility is available.

What bond options are available?
You can choose from cumulative and non-cumulative bond options.

How much tax do I have to pay?
The interest income from the bonds is taxable. TDS is deducted at the time of interest payment as per the prevailing IT rules.

What is the minimum and maximum limit for investment in the 7.75 % Savings (Taxable) Bonds?
The Bonds will be issued for a minimum amount of Rs. 1000/- (face value) and in multiples thereof.

What is the tenure of the 7.75% Savings (Taxable) Bonds?
The tenure of the bond is 7 years from the date of issue. No interest will accrue after the maturity of the bond.

Are the 7.75% Savings (Taxable) Bonds transferable?
No, these bonds are not transferable.

How much interest will the 7.75% Savings (Taxable) Bonds bear?
Bonds will bear interest @ 7.75% p.a. and are payable half-yearly. The interest payment dates are February 1 and August 1 for non-cumulative investments.
For investors who have chosen the cumulative option, the value of the investments at the end of 7 years would be Rs. 1703 (being Principal and Interest) for every Rs. 1000 invested. Interest on the Bonds is taxable under Income Tax Act 1961.

 

Download 7.75% Saving (Taxable) Bond Application Form

  1. Download Cumulative Application Form                 
  2. Download Non Cumulative Application Form         

 

 

Bank will accept the applications from today Onward’s i.e. Feb 05, 2018.