{"id":3850,"date":"2013-02-21T23:15:17","date_gmt":"2013-02-21T17:45:17","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=3850"},"modified":"2014-06-20T09:10:28","modified_gmt":"2014-06-20T03:40:28","slug":"hudco-tax-free-bonds-tranche-ii-march-2013-review","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/hudco-tax-free-bonds-tranche-ii-march-2013-review\/","title":{"rendered":"HUDCO Tax Free Bonds (Tranche- II) &#8211; March 2013 &#8211; Review"},"content":{"rendered":"<p style=\"text-align: justify;\">There have been series of Tax free bonds in last two months from likes of\u00a0<a href=\"http:\/\/www.apnaplan.com\/hudco-tax-free-bonds-jan-2013-review\/\">HUDCO<\/a>,\u00a0<a href=\"http:\/\/www.apnaplan.com\/iifcl-tax-free-bonds-dec-2012-review\/\">IIFCL<\/a>, REC, PFC and\u00a0<a href=\"http:\/\/www.apnaplan.com\/irfc-tax-free-bonds-jan-2013-review\/\">IRFC<\/a>. <a href=\"http:\/\/www.apnaplan.com\/rec-tax-free-bonds-tranche-ii-march-2013-review\/\">REC<\/a>,\u00a0<a href=\"http:\/\/www.apnaplan.com\/irfc-tax-free-bonds-tranche-ii-feb-2013-review\/\">IRFC<\/a>,\u00a0<a href=\"http:\/\/www.apnaplan.com\/pfc-tax-free-bonds-feb-2013-review\/\">PFC had come out with its Tranche- II of Tax Free Bonds<\/a>\u00a0and\u00a0now HUDCO (Housing and Urban Development Corporation Limited) too has come out with tranche &#8211; II of Tax free bonds which would be open for subscription between February 21 till March 15, 2013.<\/p>\n<h3 style=\"text-align: justify;\">HUDCO Tax Free Bonds &#8211; Significant Points:<\/h3>\n<ul style=\"text-align: justify;\">\n<li><strong>Offer Period:<\/strong>\u00a0February 21 \u2013 March 15, 2013 (the offer can be pre-closed on full subscription)<\/li>\n<li><strong>Annual Interest Rates for Retail Investors:<\/strong>\n<ul>\n<li>7.53% for 10 Years<\/li>\n<li>7.69% for 15 Years<\/li>\n<li><em>The interest rates are 0.5% less for HNIs, QIBs and corporate subscribers.<\/em><\/li>\n<\/ul>\n<\/li>\n<li><strong>Price of each bond:<\/strong>\u00a0Rs 1,000<\/li>\n<li><strong>Minimum Investment:<\/strong>\u00a05 Bonds (Rs 5,000)<\/li>\n<li><strong>Max Investment Limit for Retail Investor:<\/strong>\u00a0Rs 10 Lakhs<\/li>\n<li><strong>Reservation:<\/strong>\u00a040% reserved for retail investors<\/li>\n<li><strong>NRIs can invest:<\/strong>\u00a0NRIs can invest as retail investors or in the other category for the HUDCO tax free bonds.<\/li>\n<li><strong>Rating:<\/strong>\u00a0\u2018CARE AA+\u2019 by CARE and\u00a0IRRPL \u2018IND AA+\u2019<\/li>\n<li><strong>Allotment:<\/strong>\u00a0First Come First Serve<\/li>\n<li><strong>Listing:<\/strong>\u00a0Bonds would be listed on NSE and will entail capital gains tax on exit through secondary market<\/li>\n<li>You can apply for these bonds in the\u00a0<strong>Demat or the physical format<\/strong>, but for trading\u00a0you need to have them in the Dematerialized format.<\/li>\n<li><strong>Step Down Clause:<\/strong>\u00a0The bonds will come with a step-down clause, according to which only the original allottee, who has subscribed under the retail category will receive the coupon of 7.53% &#8211; 7.54% depending on tenure. On sale or transfer, the benefit is lost and rates reduce to that applicable for other investors (6.88% for 10-year bonds and 7.04% for 15-year bonds).<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\">Why you should invest?<\/h3>\n<ol style=\"text-align: justify;\">\n<li>The bonds are secured to the full extent and have the safe credit rating (AA+)<\/li>\n<li>HUDCO Tax free bonds are offering the highest interest rate among its peers. This is on account of slightly lower credit rating but I don&#8217;t take it as too much of a concern.<\/li>\n<li>The interest rates on future tax free bonds might be lower as RBI might moderate its policy rates further<\/li>\n<li>Reduction in interest rates would means an increase in the price of bonds thus giving capital gains<\/li>\n<li>There are also speculation about lesser numbers of tax free bonds would be issued next year post this budget.<\/li>\n<\/ol>\n<h3 style=\"text-align: justify;\">Why you should not invest?<\/h3>\n<ol style=\"text-align: justify;\">\n<li>The interest rate offered by PPF is 8.8% tax free. You should exhaust your maximum PPF limit of Rs. 1 Lakh before you look for tax free bonds<\/li>\n<li>If you are not in higher tax slab of 20% or more<\/li>\n<li>These bonds\u00a0<strong>don&#8217;t make much sense for NRIs<\/strong>\u00a0as they can\u00a0get better returns on\u00a0<a href=\"http:\/\/www.apnaplan.com\/tag\/nre-fixed-deposit\/\">NRE fixed deposits<\/a>\u00a0with banks that offer rates of around 9 per cent, tax-free<\/li>\n<\/ol>\n<h3 style=\"text-align: justify;\">HUDCO Tax Free Bonds &#8211;\u00a0Who should apply?<\/h3>\n<p style=\"text-align: justify;\">As for most tax free bonds,\u00a0<strong>these are good for investors in high income tax bracket of 20% and 30%.<\/strong>\u00a0Today the maximum rate offered by bank fixed deposit is 9%. This translates into a post tax return of 7.2% for 20% tax slab and 6.2% for 30% tax slab. This is lower than HUDCO\u2019s 10-year and 15-year tax free bonds.<\/p>\n<p style=\"text-align: justify;\">Along with the above, it suits investors who want regular income from interest payment and have low risk profile.<\/p>\n<p style=\"text-align: justify;\"><strong>Also Read:\u00a0<a href=\"http:\/\/www.apnaplan.com\/how-your-wife-can-help-you-save-taxes\/\">How investing in Tax free Bonds in your Wife&#8217;s name can save tax?<\/a><\/strong><\/p>\n<h3 style=\"text-align: justify;\">About HUDCO:<\/h3>\n<p style=\"text-align: justify;\">Housing &amp; Urban Development Corporation Ltd. (HUDCO) is a public sector company fully owned by Govt. of India for financing of housing and urban infrastructure activities in India. HUDCO was incorporated on April 25, 1970.<\/p>\n<h3 style=\"text-align: justify;\">HUDCO Tax Free Bond Advertisement:<\/h3>\n<figure id=\"attachment_3933\" aria-describedby=\"caption-attachment-3933\" style=\"width: 613px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-3933\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/02\/HUDCO-Tax-Free-Bonds-Tranche-II-613x1024.png\" alt=\"HUDCO Tax Free Bonds 2013 - Tranche II\" width=\"613\" height=\"1024\" title=\"\"><figcaption id=\"caption-attachment-3933\" class=\"wp-caption-text\"><strong>HUDCO Tax Free Bonds 2013 &#8211; Tranche II<\/strong><\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>There have been series of Tax free bonds in last two months from likes of\u00a0HUDCO,\u00a0IIFCL, REC, PFC and\u00a0IRFC. REC,\u00a0IRFC,\u00a0PFC had come out with its Tranche- II of Tax Free Bonds\u00a0and\u00a0now HUDCO (Housing and Urban Development Corporation Limited) too has come out with tranche &#8211; II of Tax free bonds which would be open for subscription [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4917,"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":[2025,2024,209,1790,1791],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/02\/HUDCO-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",573,343,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/02\/HUDCO-Tax-Free-Bonds-Tranche-II-March-2013-Review-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/02\/HUDCO-Tax-Free-Bonds-Tranche-II-March-2013-Review-300x179.png",300,179,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/02\/HUDCO-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",573,343,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/02\/HUDCO-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",573,343,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/02\/HUDCO-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",573,343,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/02\/HUDCO-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",573,343,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2013\/02\/HUDCO-Tax-Free-Bonds-Tranche-II-March-2013-Review.png",120,72,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"There have been series of Tax free bonds in last two months from likes of\u00a0HUDCO,\u00a0IIFCL, REC, PFC and\u00a0IRFC. REC,\u00a0IRFC,\u00a0PFC had come out with its Tranche- II of Tax Free Bonds\u00a0and\u00a0now HUDCO (Housing and Urban Development Corporation Limited) too has come out with tranche &#8211; II of Tax free bonds which would be open for subscription&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/3850"}],"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=3850"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/3850\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/4917"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=3850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=3850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=3850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}