NHAI – National Highway Authority of India – is an autonomous body under the ministry of Road transport & Highways, Govt Of india. NHAI is engaged in development and maintenance of highways across the country.
NHAI will issue secured tax free bonds worth Rs.3300 crores through this tranche.
Imp Dates:
- Issue open date:Feb 24, 2016
- Issue close date:March 01, 2016.
But as per prior experience of tax free bonds this issue will also oversubscribed earlier.
Interest Rates:
Other Details:
- Only Indian resident / HUFs are allowed in category IV investors. NRIs are not allowed to invest.
- Bonds will be listed at NSE and BSE. Bonds are tradable after listing.
- Annual interest is tax free but if investor sell bonds in secondary market then appropriate capital gain tax will be payable.Also if total annual tax free income (like tax free income from stock dividends & equity mutual funds, income from tax free bonds)is higher than Rs.5000 then report it while you file your returns.
- Credit Rating : AAA from CARE,ICRA,CRISIL & IND ratings.
- 40% of the issue size is reserved for Category IV investors.
- Investor can apply with physical or demat mode.But it is suggested to apply in demat mode if you have operative demat account.
Concluding,tax free bond is good option for individuals :
- who are in high tax bracket.
- want long term periodic, annuity like income.
- Want safe investment.
- Its may not appropriate to invest by young earning individuals as their is no cumulative growth option.So such investors can look for PPF instead of tax free bonds.
