{"id":1504,"date":"2012-03-05T05:13:49","date_gmt":"2012-03-05T05:13:49","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=1504"},"modified":"2014-06-20T19:25:39","modified_gmt":"2014-06-20T13:55:39","slug":"rural-electrification-corporation-rec-tax-free-bonds-should-you-invest","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/rural-electrification-corporation-rec-tax-free-bonds-should-you-invest\/","title":{"rendered":"Rural Electrification Corporation (REC) Tax Free Bonds &#8211; Should you invest?"},"content":{"rendered":"<p style=\"text-align: justify;\">Rural Electrification Corporation (REC), Govt of India undertaking Navratna company has come up with a issue of secured, tax free bonds of size 1500 crore with option to retain over subscription of up to Rs. 3000 crore.<\/p>\n<p style=\"text-align: justify;\"><strong>Highlights of Rural Electrification Corporation Tax Free Bonds:<\/strong><\/p>\n<ul>\n<li>The<strong> income by way of interest on these Bonds is exempt from Income Tax<\/strong> and shall not form part of Total Income as per provisions under section 10 (15) (iv) (h) of IT Act.<\/li>\n<li>There will be <strong>no deduction of tax at source<\/strong> from the interest, which accrues to the bondholders on these bonds irrespective of the amount of the interest or the status of the investors.<\/li>\n<li><strong>Wealth Tax is not levied<\/strong> on investment in Bonds under section 2(ea) of the Wealth-tax Act, 1957.<\/li>\n<li>Allotment Only in <strong>Dematerialised Form<\/strong><\/li>\n<li>Would be <strong>listed on BSE<\/strong> (Bombay Stock Exchange) Only<\/li>\n<li><strong>Interest would be payable annually<\/strong><\/li>\n<li><span style=\"text-decoration: underline;\"><span style=\"background-color: #ffcc00;\">Minimum Application Amount:<\/span><\/span><span style=\"background-color: #ffffff;\"> 5 Bonds or Rs. 5,000<\/span><\/li>\n<li><span style=\"text-decoration: underline;\"><span style=\"background-color: #ffcc00;\">Tenor\/Redemption Date:<\/span><\/span> 10 Years and 15 Years from the deemed date of allotment<\/li>\n<li><span style=\"text-decoration: underline;\"><span style=\"background-color: #ffcc00;\">Issue Opening Date:<\/span><\/span> March 6, 2012<\/li>\n<li><span style=\"text-decoration: underline; background-color: #ffcc00;\">Issue Closing Date:<\/span> March 12, 2012<\/li>\n<li><span style=\"text-decoration: underline;\"><span style=\"background-color: #ffcc00;\"><strong>Credit Rating:<\/strong><\/span><\/span> \u201cCRISIL AAA\/Stable\u201d by CRISIL, \u201cCARE AAA\u201d by CARE, \u201c[ICRA] AAA\u201d by ICRA &amp; \u201cFitch AAA (Ind)by FITCH \u2013 the best rating. Also,\u00a0REC Consistently rated \u201cExcellent\u201d in terms of performance by GOI since Fiscal 1994<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><strong>Who can Apply?<\/strong><\/p>\n<ul>\n<li>Individual and HUF applicants applying for any amount up to Rs. 1 Lac will be classified under <strong>Retail Category<\/strong><\/li>\n<li>Individual and HUF Applicants applying above 1 Lac will be classified under <strong>HNI Category.<\/strong><\/li>\n<li>NRI applicants are not allowed<\/li>\n<\/ul>\n<table border=\"1\" cellspacing=\"1\" cellpadding=\"5\">\n<tbody>\n<tr align=\"center\" valign=\"middle\">\n<td><strong>Cateogary I<\/strong><\/td>\n<td><strong>Cateogary II<\/strong><\/td>\n<td><strong>Cateogary III<\/strong><\/td>\n<\/tr>\n<tr align=\"center\" valign=\"middle\">\n<td>QIB &amp; Corporate<\/td>\n<td>Individuals \/ HUFs applying for more than <s>1 lakh<\/s>5 lakhs<\/td>\n<td>Individuals\/HUFs applying for less than Rs <s>1 lakh<\/s>5 lakhs<\/td>\n<\/tr>\n<tr align=\"center\" valign=\"middle\">\n<td>Upto 50% of overall issue size<\/td>\n<td>Upto 25% of overall issue size<\/td>\n<td>Upto 25% of overall issue size<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div><span style=\"background-color: #ffcc99;\"><strong>Update:<\/strong>\u00a0Retail cap in REC issue raised to Rs 5 lakh. read the update <a href=\"http:\/\/www.business-standard.com\/india\/news\/retail-cap-in-rec-issue-raised-to-rs-5-lakh\/466976\/\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/span><\/div>\n<p style=\"text-align: justify;\"><strong>Allotment Basis<\/strong>: on first come first serve basis to be determined on the basis of date of receipt of application duly acknowledged by Banker to the Issue.<\/p>\n<p style=\"text-align: justify;\"><strong>Interest Rates:<\/strong><\/p>\n<table border=\"1\" cellspacing=\"1\" cellpadding=\"5\">\n<tbody>\n<tr align=\"center\" valign=\"middle\">\n<td><strong>Options<\/strong><\/td>\n<td><strong>Series-1<\/strong><\/td>\n<td><strong>Series-2<\/strong><\/td>\n<\/tr>\n<tr align=\"center\" valign=\"middle\">\n<td>Tenure<\/td>\n<td><strong>10 Years<\/strong><\/td>\n<td><strong>15 Years<\/strong><\/td>\n<\/tr>\n<tr align=\"center\" valign=\"middle\">\n<td>Interest Payment<\/td>\n<td>Annual<\/td>\n<td>Annual<\/td>\n<\/tr>\n<tr align=\"center\" valign=\"middle\">\n<td>Face value Rs\/Bond<\/td>\n<td>1,000<\/td>\n<td>1,000<\/td>\n<\/tr>\n<tr align=\"center\" valign=\"middle\">\n<td>Min Application<\/td>\n<td>5,000 [5 Bonds]<\/td>\n<td>5,000[5 Bonds]<\/td>\n<\/tr>\n<tr align=\"center\" valign=\"middle\">\n<td>Put\/Call Option<\/td>\n<td>None<\/td>\n<td>None<\/td>\n<\/tr>\n<tr align=\"center\" valign=\"middle\">\n<td><strong>Interest rate for Cateogary I and II [% p.a.]<\/strong><\/td>\n<td><strong>7.93%<\/strong><\/td>\n<td><strong>8.12%<\/strong><\/td>\n<\/tr>\n<tr align=\"center\" valign=\"middle\">\n<td><strong>Interest rate for cateogary III<\/strong><\/td>\n<td><strong>8.13%<\/strong><\/td>\n<td><strong>8.32%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p><strong>Should you invest in REC Tax Free Bonds?<\/strong><\/p>\n<p class=\"tip\">These bonds are best suited for people who fall in the highest tax bracket and requires regular income as the interest is payable annually. If you are not in the above category you can do equally good by investing in Bank Fixed Deposits.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rural Electrification Corporation (REC), Govt of India undertaking Navratna company has come up with a issue of secured, tax free bonds of size 1500 crore with option to retain over subscription of up to Rs. 3000 crore. Highlights of Rural Electrification Corporation Tax Free Bonds: The income by way of interest on these Bonds is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4938,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[31,30,340],"tags":[261,343,341,342],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/03\/REC-Tax-Free-Bonds-March-2012-Review.png",575,333,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/03\/REC-Tax-Free-Bonds-March-2012-Review-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/03\/REC-Tax-Free-Bonds-March-2012-Review-300x173.png",300,173,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/03\/REC-Tax-Free-Bonds-March-2012-Review.png",575,333,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/03\/REC-Tax-Free-Bonds-March-2012-Review.png",575,333,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/03\/REC-Tax-Free-Bonds-March-2012-Review.png",575,333,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/03\/REC-Tax-Free-Bonds-March-2012-Review.png",575,333,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/03\/REC-Tax-Free-Bonds-March-2012-Review.png",120,69,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"Rural Electrification Corporation (REC), Govt of India undertaking Navratna company has come up with a issue of secured, tax free bonds of size 1500 crore with option to retain over subscription of up to Rs. 3000 crore. Highlights of Rural Electrification Corporation Tax Free Bonds: The income by way of interest on these Bonds is&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/1504"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=1504"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/1504\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/4938"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=1504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=1504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=1504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}