National Highway Authority Of India – NHAI engaged in building and maintenance of highways has come up with public issue of Tax Free Bonds will open for subscription on January 15, 2014.
More details of NHAI tax free bonds are as follows:
- Issuer company : National Highway Authority Of India -Govt Of India Enterprise.
- Issue Size: Rs.3698.40 Crore.
- Interest payment Frequency : Annual interest payment which is of tax free in nature.But investor need to highlight this income in IT returns if total annual tax free income exceeds Rs.5000 in financial year.
- Interest payment date: March 15, Every year.Interest will be credited in investors account every year on March 15,except last year which will paid along with principal amount.
- Issue Open Date : January 15, 2014.
- Issue Close Date : Feb 05, 2014.
- Interest Rates:
One can view that issue offers two investment options – One with Tenure of 10 years and another of 15 years.Highest interest rate offered for Category IV investors i.e. individual investors applying for Rs.10 Lakh or less amount will be 8.75% for tenure of 15 years.
Premature withdrawal : If investor is holding bonds in physical form then there is no scope for premature withdrawal.In case of holding in demat form,investor can sell bonds in open market but yields won’t be guaranteed.There is always low liquidity in secondary market and investor may need to settle for discounted rate.
As usual,these bonds offer highest safety and if any one is looking for annual interest income for long term then tax free bonds is good option.
