{"id":6732,"date":"2016-01-04T08:50:24","date_gmt":"2016-01-04T03:20:24","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=6732"},"modified":"2016-01-10T22:34:59","modified_gmt":"2016-01-10T17:04:59","slug":"ireda-tax-free-bond-jan-2016","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/ireda-tax-free-bond-jan-2016\/","title":{"rendered":"7.74% IREDA Tax Free Bond &#8211; January 2016 &#8211; Should You Invest?"},"content":{"rendered":"<figure id=\"attachment_6733\" aria-describedby=\"caption-attachment-6733\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-6733\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bond-\u2013-January-2016-300x173.png\" alt=\"IREDA Tax Free Bond \u2013 January 2016\" width=\"300\" height=\"173\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bond-\u2013-January-2016-300x173.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bond-\u2013-January-2016.png 570w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-6733\" class=\"wp-caption-text\"><strong>IREDA Tax Free Bond \u2013 January 2016<\/strong><\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><b>IREDA\u00a0(Indian Renewable Energy Development Agency Ltd)<\/b>, a Government of India NBFC\u00a0is issuing its <span style=\"text-decoration: underline;\"><strong>Tax Free Bond<\/strong><\/span>. It would offer coupon rate up to 7.74% for retail investors depending on tenure. You can choose between tenure of 10, 15 and 20 Years. The bond issue would be open for subscription for <strong>January 8 to 22, 2016<\/strong>.<\/p>\n<h2 style=\"text-align: justify;\">About IREDA:<\/h2>\n<p style=\"text-align: justify;\">IREDA is Public Limited Government Company established as a Non-Banking Financial Institution and is responsible to promote, develop and extend financial assistance for renewable energy and energy efficiency \/conservation projects.<\/p>\n<h2 style=\"text-align: justify;\">Salient Features: IREDA Tax Free Bonds 2016<\/h2>\n<ul style=\"list-style-type: disc; text-align: justify;\">\n<li style=\"text-align: justify;\"><strong>Offer Period: January 8\u00a0to 22, 2016\u00a0<\/strong>(the offer can be pre-closed on full subscription)<\/li>\n<li style=\"text-align: justify;\"><strong>Annual Interest Rates for Retail Investors:<\/strong>\u00a07.53% for 10 Years; 7.74% for 15 Years and 7.68% for 20 Years<\/li>\n<li style=\"text-align: justify;\">The interest rates are 0.25% less for HNIs, QIBs and corporate subscribers.<\/li>\n<li style=\"text-align: justify;\"><strong>40% of issue is reserved for Retail Investors<\/strong><\/li>\n<li style=\"text-align: justify;\">Price of each bond: Rs 1,000<\/li>\n<li style=\"text-align: justify;\"><strong>Minimum Investment:<\/strong> 5 Bonds (Rs 5,000)<\/li>\n<li style=\"text-align: justify;\"><strong>Max Investment<\/strong> Limit for Retail Investor: Rs 10 Lakhs<\/li>\n<li style=\"text-align: justify;\"><strong>Date of first Interest Payment<\/strong>:\u00a0To be updated<\/li>\n<li style=\"text-align: justify;\">Can be applied <strong>both in Physical and\u00a0Demat Form<\/strong><\/li>\n<li style=\"text-align: justify;\"><strong>Allotment:<\/strong> First Come First Serve<\/li>\n<li style=\"text-align: justify;\"><strong>Listing:<\/strong> Bonds would be listed on BSE and will entail capital gains tax on exit through secondary market<\/li>\n<li style=\"text-align: justify;\"><strong>Tax\/TDS:<\/strong> As these are tax Free Bonds so no tax is to be paid and there is no TDS on interest<\/li>\n<\/ul>\n<blockquote><p><strong>Also Read:<\/strong>\u00a0<a href=\"http:\/\/www.apnaplan.com\/ppf-2\/\">PPF &#8211; A Must Have Investment<\/a><\/p><\/blockquote>\n<h2 style=\"text-align: justify;\">IREDA\u00a0Tax Free Bond \u2013 Interest Rate:<\/h2>\n<p style=\"text-align: justify;\">The IREDA Tax Free Bond offers the following interest rates. The interest would be paid every year.<\/p>\n<p style=\"text-align: justify;\">The table also shows the effective interest rate for different tax slabs. <em>For e.g. To earn post tax 7.74% interest on deposit a person in 30% tax bracket should actually get pre tax return of 11.20%.<\/em><\/p>\n<figure id=\"attachment_6734\" aria-describedby=\"caption-attachment-6734\" style=\"width: 757px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-6734\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bonds-\u2013-January-2016-Interest-Rate-1024x560.png\" alt=\"IREDA Tax Free Bonds \u2013 January 2016 - Interest Rate\" width=\"757\" height=\"414\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bonds-\u2013-January-2016-Interest-Rate-1024x560.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bonds-\u2013-January-2016-Interest-Rate-300x164.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bonds-\u2013-January-2016-Interest-Rate-768x420.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bonds-\u2013-January-2016-Interest-Rate.png 1173w\" sizes=\"(max-width: 757px) 100vw, 757px\" \/><figcaption id=\"caption-attachment-6734\" class=\"wp-caption-text\"><strong>IREDA Tax Free Bonds \u2013 January 2016 &#8211; Interest Rate<\/strong><\/figcaption><\/figure>\n<h2 style=\"text-align: justify;\">Who should invest?<\/h2>\n<p style=\"text-align: justify;\"><strong>Tax Free Bonds are suited for people in the tax bracket of 20% or higher who are looking for regular and safe income.<\/strong> In case you do not want regular income you should first exhaust your Rs 1.5 lakhs <a href=\"http:\/\/www.apnaplan.com\/ppf-2\/\">PPF limit<\/a> where the returns are 8.7% and tax free. Salaried employees should opt for<a href=\"http:\/\/www.apnaplan.com\/voluntary-provident-fund-a-good-retirement-option\/\"> VPF <\/a>before looking at tax free bonds. Both the above options have higher returns, tax free and partial exit options after 5\/6 years.<\/p>\n<blockquote>\n<p style=\"text-align: justify;\"><strong>Also Read:<\/strong>\u00a0<a href=\"http:\/\/www.apnaplan.com\/max-income-tax-saving-fy2015\/\">What is the Maximum Income Tax You can Save for FY 2015-16?<\/a><\/p>\n<\/blockquote>\n<h2 style=\"text-align: justify;\">Why you should invest?<\/h2>\n<ol style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><strong>Almost \u201cNO\u201d credit risk.<\/strong> The bonds are rated \u201cAA+\u201d and the company is owned by Government of India. The bonds are secured to the full extent and have the high credit rating (AAA).<\/li>\n<li style=\"text-align: justify;\">For retail investors, <strong>the interest offered is higher than the offers on Tax free bonds in Secondary\u00a0Market.<\/strong><\/li>\n<li style=\"text-align: justify;\"><strong>Good for investors in the tax bracket of 20% or higher<\/strong> looking for safe and regular income for long duration.<\/li>\n<li style=\"text-align: justify;\">There are chances of further rate cut by RBI. If it happens there <strong>would be capital appreciation<\/strong>\u00a0in the bond price.<\/li>\n<\/ol>\n<h2 style=\"text-align: justify;\">Why you should not invest?<\/h2>\n<ol style=\"text-align: justify;\">\n<li style=\"text-align: justify;\">PPF and EPF\/VPF offer tax free interest rate of more than 8.7%. So you should first exhaust those options especially if you are not looking for regular income.<\/li>\n<li style=\"text-align: justify;\">If you are in 10% tax bucket or pay no taxes, you would be better off with banks Fixed deposits or debt mutual funds.<\/li>\n<\/ol>\n<blockquote><p><strong>Also Read:<\/strong> <a href=\"http:\/\/www.apnaplan.com\/highest-interest-rate-on-recurring-deposits-rd\/\">Highest Interest Rate on Recurring Deposits [comparing 41 banks]<\/a><\/p><\/blockquote>\n<h2 style=\"text-align: justify;\">How to Apply?<\/h2>\n<p style=\"text-align: justify;\">The bonds can be issued both in physical and demat form. For applying through Demat Account, go to the IPO\/NCD\/Bonds offer tab of your Demat account and fill out relevant details.<\/p>\n<p style=\"text-align: justify;\">You can also download the Physical Form and follow the instructions.<\/p>\n<h2 style=\"text-align: justify;\">To Conclude:<\/h2>\n<p style=\"text-align: justify;\"><strong>IREDA\u00a0Tax Free Bonds 2016 suits investors who are looking for safe, regular income and are in the higher tax bracket.<\/strong> A few more PSUs are going to issue tax free bonds in coming days. The interest rate is expected to go marginally downward.<\/p>\n<p style=\"text-align: justify;\">NTPC\/PFC\/REC\/IRFC\/NHAI Tax Free Bond were over-subscribed before the formal closing date, so <strong>if you want to subscribe these bonds, invest early as these would be grabbed very soon and may close for subscription<\/strong> if it gets fully subscribed before closure date.<\/p>\n<h2 style=\"text-align: justify;\">IREDA Tax Free Subscription:<\/h2>\n<p style=\"text-align: justify;\">IREDA Tax Free\u00a0Bonds were subscribed almost 3 times on the first day itself. The retail portion was subscribed 1.84 times, while the HNI portion received bids for 2.04 times the part set aside for them.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IREDA\u00a0(Indian Renewable Energy Development Agency Ltd), a Government of India NBFC\u00a0is issuing its Tax Free Bond. It would offer coupon rate up to 7.74% for retail investors depending on tenure. You can choose between tenure of 10, 15 and 20 Years. The bond issue would be open for subscription for January 8 to 22, 2016. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6733,"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":[2936,2937,2938,2940,2939],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bond-\u2013-January-2016.png",570,329,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bond-\u2013-January-2016-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bond-\u2013-January-2016-300x173.png",300,173,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bond-\u2013-January-2016.png",570,329,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bond-\u2013-January-2016.png",570,329,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bond-\u2013-January-2016.png",570,329,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bond-\u2013-January-2016.png",570,329,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/IREDA-Tax-Free-Bond-\u2013-January-2016.png",120,69,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"IREDA\u00a0(Indian Renewable Energy Development Agency Ltd), a Government of India NBFC\u00a0is issuing its Tax Free Bond. It would offer coupon rate up to 7.74% for retail investors depending on tenure. You can choose between tenure of 10, 15 and 20 Years. The bond issue would be open for subscription for January 8 to 22, 2016.&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/6732"}],"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=6732"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/6732\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/6733"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=6732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=6732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=6732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}