What is IRFC tax free bonds?
IRFC N1 series The bonds will mature in the month of Feb 2022, but, as mentioned, one can sell the bonds through the various stock exchanges in the country. The bonds are rated AAA and offer tax free income to investors. IRFC is a government owned entity and hence there are no worries on the safety of the instrument.
How can I buy Indian Railway bonds?
How to subscribe to the IRFC bonds?
- Download the IRFC application form.
- Fill the application with the required details and documents.
- Along with the IRFC bond application form, draw a cheque in the name of- IRFC Capital Gain Bonds.
Is IRFC debt free?
As long as the agreement between IRFC and MoR keeps renewing, the company runs a risk-free business despite having high long-term debt. It is the first public sector NBFC to get listed.
Which are tax free bonds?
Agencies Tax-free bonds like NHAI, PFC, REC, IRFC, Hudco and Nabard are popular amongst investors. Mumbai: The rich always have options – beyond the complex world of derivatives. , these instruments give rich savers higher returns than either fixed deposits or small-savings schemes ever will.
What is the interest rate on NHAI bonds?
These Capital Gain Bonds which help in saving tax can only be issued by the National Highway Authority of India (NHAI) or the Rural Electrification Corporation of India (REC). The Interest Rate on the Capital Gains Bonds is 5.75%. The Interest @ 5.75% is payable annually by both NHAI as well as REC.
Are tax free bonds safe?
Tax-free bonds may well be the answer for you to get reasonable returns without taking risks. These bonds are especially helpful for those in the higher tax brackets, given that interest from regular deposits and bonds is fully taxable.
How do I buy a tax free rec bond?
The REC N6 Tax Free Bonds are traded on the National Stock Exchange and hence can be bought and sold. The interest on these bonds are payable in September every year. The REC N6 Bonds are AAA rated and in any case since REC is a government backed institution the bonds are safe.
Can IRFC be multibagger?
It won’t be a big multibagger for sure. But it is a very safe stock that will surely give much better returns than any Mutual funds. Could expect good dividend and I personally expect it to double in 3-4 years from here. You can keep Rail Vikas as benchmark for it.
How do I buy tax free bonds?
Tax-free bonds can be transacted in stock exchanges. Any investor can buy and sell these tax-free bonds on the stock exchanges. Although the interest earned by investing tax-free bonds is not taxable, any capital gains received from selling these tax-free bonds in the secondary market are taxable.
What is the current interest rate on tax free bonds?
The corporate bonds yield 7%, and the tax-free municipal bonds yield 5%.
Which bond is better NHAI or REC?
REC bonds score a bit higher than NHAI bonds. Because on maturity i.e., after 5 years, NHAI bondholders have to apply for surrender of bonds only then the maturity amount is redeemed and paid by cheque or ECS. In the case of REC bonds, it will be automatically redeemed and paid by cheque or ECS.
Is NHAI bonds are tax free?
NHAI plans to raise funds through public issue of tax free, secured, redeemable non-convertible bonds with Face Value of Rs 1,000 each for an amount of Rs 1,000 crore with an option to retain over subscription of upto additional Rs 9,000 crore, aggregating upto a total of Rs 10,000 crore.
What is the interest rate on tax free bonds?
How do I buy NHAI bonds?
These Capital Gain bonds can be purchased either from NHAI/ REC or from authorised brokers of these bonds. There is no online mechanism of purchasing these bonds and a person would be required to physically visit their office and fill in the physical form.
Are REC bonds safe?
The Bonds issued by NHAI & REC are AAA Rated Bonds indicating that they are highly stable and the face value of each bond is Rs. 10,000.
What is the interest rate on tax free bonds India?
between 5.50% to 6.50%
The rate of interest offered on tax-free bonds generally ranges between 5.50% to 6.50%, which is fairly attractive when considering the tax exemption on interest for these bonds.
Is IRFC a monopoly?
It enjoys ‘monopoly’ in the sector As the company funds the Ministry of Railways, it has a significantly low client-risk profile and no asset quality concerns. As of September 2020, IRFC did not have any non-performing assets.
Will IRFC pay dividends?
This is in addition to the interim dividend of Rs 0.77 per equity share declared on November 1, 2021, thereby making a total dividend of Rs 1.40 per share.
What is Indian Railway Finance Corporation’s new bond issue?
Indian Railway Finance Corporation is coming out with a tax free, secured, redeemable, non-convertible bonds issue of face value of Rs 1,000 each, aggregating up to Rs 6,300 crore in the year 2012, which has AAA rating from CRISIL and CARE.
Is there any wealth tax on investment in bonds?
Wealth Tax is not levied on investment in Bonds under section 2 (ea) of the Wealth-tax Act, 1957. Issue size is Rs. 3,000 Crores, with option to retain over-subscription upto Rs. 6,300 Crores. Salient Features of Tax Free Bonds Proposed to be issued by Indian Railway Finance Corporation Limited
What is the face value of Indian Railways N1 and N2 bonds?
The bonds (series N1) having a face value of Rs 1,000 was quoted at Rs 1,015 and bonds (series N2) at Rs 1005.70 on the NSE today. NSE 0.00 % ), the financing arm of Indian Railways, made their debut on Friday on the National Stock Exchange and BSE at a premium today.
What is the tax rate on non-convertible convertible bonds?
7.39% TAX FREE NON CUMULATIVE NON CONVERTIBLE REDEEMABLE BONDS. 83RD A SERIES. LETTER OF ALLOTMENT. DATE OF MATURITY 06/12/2027 7.22% TAX FREE NON CUMULATIVE NON CONVERTIBLE REDEEMABLE BONDS. 83RD SERIES.