GOI Bonds

Key Features of GOI Bonds are as follows :

Key Features
Maturity Period	6 years
Rate of Interest	8.0% per annum (Taxable)
Risk Attached	Low Risk
Minimum Investment	Rs. 1,000/-
Maximum Investment	Unlimited in multiples of Rs.1,000/-
Collateral Facility	Available
Overall Liquidity	Not tradable
Date of Issue	Date of realization of the funds

Payment of Interest:

Non-cumulative (half yearly): Interest to the holders opting for non-cumulative bonds will be paid from date of issue up to 31st July/31st January as the case may be and thereafter half yearly for period ending 30th June /31st December on 1st August and 1st February.
Cumulative: Interest at the rate of 8% per annum compounded with half yearly rests and will be paid to the investor on maturity along with principal. (the maturity value of the bonds shall be Rs 1601.00/- for every Rs1000/-) (subject to TDS as applicable).

Tax Concessions:

Interest on the Bond will be taxable under Income-Tax Act,1961.
The bonds will be exempt from Wealth-Tax under the Wealth-Tax Act, 1957.

Eligibility:

The main features of these bonds are as follows:

As an individual:
1. Who is not a Non-resident Indian
2. In his or her individual capacity or
3. On joint basis, or
4. Anyone or survivor basis, or
5. On behalf of a minor as father/mother/legal guardian.
As a Hindu Undivided Family
As an Institution:
1. 'Charitable Insititution' under section 25 of the Indian Companies Act 1956.
2. Institution obtained Certificate Of Registration as charitable institution .
3. Any Institution which obtained certificate from Income Tax Authority
  U/S 80G of Income Tax Act ,1961.
"UNIVERSITY" established or incorporated by Central, State or Provincial Act, U/S 3 of University Grants Commission Act, 1956 (3 of 1956) .