GOI 8% Savings (Taxable)Bonds 2003

Government of India (GOI) 8% Savings (Taxable) Bonds 2003 -

GOI Bonds are Government of India Bonds. These are the bonds which are backed by the full faith of Government of India and that’s why they are 100% risk free. They offer fixed Income.

Introduction -

8.0% 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.

FAQs -

- What are different kinds of bonds available? What is the maturity period?  
Currently 8% Savings (Taxable) Bonds are available. The same are available online through ICICIdirect.The maturity period of 8% Saving Bonds is 6 years without any early redemption option.
· Who issues Savings bonds? Is payment guaranteed on maturity?
Saving Bonds are issued by the Government of India. As these bonds are sovereign in nature, payment is guaranteed on maturity.
· Who can invest in Saving Bonds through ICICIdirect?
All Individuals and Hindu Undivided Families (HUFs), who are customers of ICICIdirect can invest in these Bonds through ICICIdirect.
· What is the role of ICICI Bank?
All applications made through ICICIdirect shall be handled by ICICI Bank who would act as a RBI authorised Receiving Office. ICICI Bank would allot the Bond Ledger Account (BLA) no. for the investments made through ICICIdirect.
· What is the minimum and maximum permissible investment?
The minimum permissible investment for 8% Savings Bonds is Rs.1000/- and in multiples of Rs. 1000/- thereof.

There is however is no maximum limit of investment.

· How do I apply for Saving Bonds through ICICIdirect?
For investing in Saving Bonds you will need to first allocate funds for the purpose of investing. You will need to click on the modify allocation page and allocate funds for investing in “Mutual Funds, IPO and Others”. Once sufficient funds have been allocated you can apply for these bonds by clicking on the button for GoI bonds. Thereafter click on the place order button and apply for Bonds by filling in the required details.
· When is Interest Payable?
Interest is payable at half-yearly intervals from the date of issue or compounded with half-yearly rests, payable on maturity alongwith the principal, as the investor may choose. The interest payment dates are 1st July and 1st January every year.
· How would I receive the Interest?
The interest on your Saving Bonds would be directly credited to your ICICI Bank account linked to ICICIdirect.
· What is the value date? How is the same determined?
Value date is the date from which the bond starts earning interest. In the case of investments in Saving Bonds through ICICIdirect, all investments made before 2:30 p.m. i.e. the cut-off time, would receive the value date as the transaction date. All investments made after 2:30 p.m. would receive the next business day’s value date. Investment made on Saturday or other holidays would receive the next business day’s value date. Since the processing of applications would be at Mumbai, bank holidays as applicable in the State of Maharashtra would apply and next working day shall be considered as Business Day.

For e.g.: Investment made on June 9th before 2:30 p.m. would receive the value date of June 9th itself. However if the investment were made on June 9th, after 2:30 p.m. the value date would be of June 10th. If June 10th and 11th fall on a Saturday and Sunday respectively, the value date would be of the next business day i.e. June 12th. If June 9th is a bank holiday in Maharashtra, even for investments made before 2.30 p.m., the value date shall be June 13, Monday.

· Can I place more than one order for Saving Bonds?
Yes, you can place more than one order for Saving Bonds However after you have placed the first order for any particular bond, you would not be permitted to place another order in that particular bond scheme till the Bond Ledger Account Number (BLA) is received. Normally the BLA Number would be allotted within 4 business days.

For eg: If you make an investment in 8% Saving Bonds you would not be permitted to place another order in 8% Saving Bonds till the BLA No. is allotted to you.

· Will I receive any confirmation for the transaction?
Yes. an e-mail will be sent to you detailing the transaction.
· When will I receive my Bond Ledger Account number?
As soon as the bonds are credited to your Bond Ledger Account, an e-mail will be sent to you specifying the Bond ledger Account number and the number of bonds held. You can also view your Bond Ledger Account number on the Portfolio Page and the Order Book.
ICICI Bank will also send a certificate of holding detailing your investment. This should reach you within 15 days of allotment of Bond Ledger Account number.
· Can I view my holdings Online?
In case you wish to view your holdings online, please click on the option “portfolio” in the GoI Bond Page. You will be able to view your investments in 8% Saving Bonds through ICICIdirect.
· Are joint holders permitted?
As your e-broking account is a single account, all investments through icicidirect.com in 8% Saving Bonds would have a single holder and no joint holdings would be permitted.
· How can I appoint a nominee for my Bonds?
In case you wish to make any nomination for your Bonds, you shall have to download the nomination form put up on the website, and send us the duly filled form. You can see the status of your nomination on the website on the “order book” and the “portfolio page” of the GoI Bond page. You will have to fill up the nomination details on the nomination page on the site itself otherwise the nomination will not be processed.
· How can I redeem the bonds?
On maturity of bonds you would need to discharge your Certificate of Holding and submit the same to the nearest branch of ICICI Bank.
· In case I do not encash the bonds on expiry will I continue to earn interest?
No interest would be payable after maturity in case the bonds are not encashed.
· Can I transfer the bonds prior to maturity?
8% Saving Bonds are non–transferable except by way of gift to a relative as defined in Section 6 of the Indian Companies Act, 1956.
· What are the tax benefits available?
Interest on 8% Saving Bonds will be taxable under the Income-Tax Act, 1961 as applicable according to the relevant tax status of the bondholder. However these bonds will be exempt from Wealth-tax under the Wealth-tax Act.

· Is Tax deductible at source on the interest payment in case of 8% Saving Bonds?
In case of 8% Saving Bonds tax will be deducted at source while making payment of interest on the non-cumulative bonds from time to time and credited to Government Account. Tax on interest portion of the maturity value will be deducted at source at the time of payment of the maturity proceeds on the cumulative bonds and credited to Government Account.

· Can I use these bonds as collateral for obtaining loans?
No, the Bonds are not tradable in the secondary market and are not eligible as collateral for loans from banks, financial Institutions and Non Banking Financial Companies, (NBFC) etc.