Should i invest in bonds or equities 2014,write better reviews with a book review template,how to make a job offer wait,the secret law of attraction in hindi mp3 free - Reviews

Author: admin, 23.09.2015. Category: Positive Phrases About Life

For the last few months, state-run companies like NTPC (National Thermal Power Corp), PFC (Power Finance Corporation), REC (Rural Electrification Corp), IRFC (Indian Railways Finance Corp) and IREDA have come up with Tax Free Bond issues. Several state-run companies raised Rs 30,000 crore through tax-free bonds in FY12, Rs 25,000 crore in FY13 and Rs 50,000 crore in FY14. NHAI is responsible for the development, maintenance and management of the National Highway (NH) given to it by the GoI and for matters connected or incidental thereto.
As on July 31, 2015, NHAI has awarded 196 BOT (Build-Operate-Transfer) Toll based contracts at a total project cost of Rs. NHAI Tax free bonds are proposed to be listed on BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). These instruments are classified as Tax free, secured, redeemable and non-convertible bonds in the nature of debentures.
Though the two terms are used in relation to taxation matters, there exists a considerable difference between the two. Tax-free on the other hand implies income that is not taxable in the hands of investors i.e.
If you have time on your side (young or have long-term goals), equity oriented investment avenues (shares, mutual funds etc.,) are the best bets to realize your financial goals. If you are in 10% or 20% income slab rate, it may be prudent to ignore TFBs. The interest earned on bank FDs and other types of bonds are not exempted from income tax.

Invest in this issue only if your income tax slab rate is at 30% and you want a steady source of income periodically over a long-term. 1- All these TFBs are being issued by State-run companies (Govt backed entities) and have high Credit Ratings. 2 – Investors get the face value of the bonds back at the time of maturity of these bonds.
Is the principal amount i.e the face value is guaranteed at the time of maturity or can it be even less? If I invest 1Lac in 2015, will it compound over for 10 years and I will be eligible to cash it? Recently Updated Posts How to eVerify Income Tax Returns (ITR) of Previous Assessment Years? All these issues have been oversubscribed. NHAI Tax Free Bonds is the latest pulic issue which is going to be open for subscription from 24th February 2016 to 1st March, 2016. The debt mutual funds can generate higher returns when compared to Tax free bonds and you may redeem them anytime. He is an Independent Certified Financial Planner (CFP), engaged in blogging, financial counseling & property consultancy for the last 6 years through his firm ReLakhs Financial Services . Out of NHAI, HUDCO and IRFC, can you rate these companies with regards to meeting there financial obligations as long term perspective.

If i have invested 1 Lac rs in dec issue of nhai (value = 1000 rs for each bond)…and after 15 years, bond value is 1200 rs, then i should be getting my invested amount only or the market value at that time…consider also scenario in which value is decreased after 15 years.
With no income tax being charged on the returns on the tax-free investment no other rebate in the form of tax deduction for the amount invested is provided.
If you sell your Bond for a price that is more than the cost then you would have to consider this as a capital gain.
As interest earned from tax-free bonds is not taxed, investors in higher tax brackets mostly earn a better post-tax return than from FDs. Short-term capital gains from sale of tax-free bonds on exchanges are taxed at your income tax slab rate, while long-term capital gains are taxed at 10% without indexation.
But remember, the bank FDs score over tax-free bonds in terms of liquidity as these bonds have longer maturity tenure.

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