{"id":6800,"date":"2016-01-21T08:34:46","date_gmt":"2016-01-21T03:04:46","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=6800"},"modified":"2016-01-21T08:34:46","modified_gmt":"2016-01-21T03:04:46","slug":"hudco-tax-free-bond-jan-2016","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/hudco-tax-free-bond-jan-2016\/","title":{"rendered":"7.64% HUDCO Tax Free Bond &#8211; January 2016 &#8211; Should You Invest?"},"content":{"rendered":"<figure id=\"attachment_6804\" aria-describedby=\"caption-attachment-6804\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-6804\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bond-\u2013-January-2016-300x177.png\" alt=\"HUDCO Tax Free Bond \u2013 January 2016\" width=\"300\" height=\"177\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bond-\u2013-January-2016-300x177.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bond-\u2013-January-2016.png 571w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-6804\" class=\"wp-caption-text\"><strong>HUDCO Tax Free Bond \u2013 January 2016<\/strong><\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><b>HUDCO\u00a0(Housing &amp; Urban Development Corporation)<\/b>, a Government of India company\u00a0is issuing its <span style=\"text-decoration: underline;\"><strong>Tax Free Bond<\/strong><\/span>. It would offer coupon rate up to 7.64% for retail investors depending on tenure. You can choose between tenure of 10 and 15 Years. The bond issue would be open for subscription for <strong>January 27 to February 10, 2016<\/strong>.<\/p>\n<h2 style=\"text-align: justify;\">About HUDCO:<\/h2>\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<h2 style=\"text-align: justify;\">Salient Features: HUDCO\u00a0Tax Free Bonds 2016<\/h2>\n<ul style=\"list-style-type: disc; text-align: justify;\">\n<li style=\"text-align: justify;\"><strong>Offer Period: January 27 to February 10, 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>\u00a07.27% for 10 Years and 7.64% for 15 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;\">HUDCO\u00a0Tax Free Bond \u2013 Interest Rate:<\/h2>\n<p style=\"text-align: justify;\">The HUDCO 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 7.64% interest on deposit a person in 30% tax bracket should actually get pre tax return of 11.06%.<\/em><\/p>\n<figure id=\"attachment_6805\" aria-describedby=\"caption-attachment-6805\" style=\"width: 757px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-6805\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bonds-\u2013-January-2016-Interest-Rate-1024x512.png\" alt=\"HUDCO Tax Free Bonds \u2013 January 2016 - Interest Rate\" width=\"757\" height=\"379\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bonds-\u2013-January-2016-Interest-Rate-1024x512.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bonds-\u2013-January-2016-Interest-Rate-300x150.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bonds-\u2013-January-2016-Interest-Rate-768x384.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bonds-\u2013-January-2016-Interest-Rate.png 1173w\" sizes=\"(max-width: 757px) 100vw, 757px\" \/><figcaption id=\"caption-attachment-6805\" class=\"wp-caption-text\"><strong>HUDCO 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 \u201cAAA\u201d and the company is owned by Government of India. The bonds are secured to the full extent.<\/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>HUDCO Tax 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\/IREDA 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","protected":false},"excerpt":{"rendered":"<p>HUDCO\u00a0(Housing &amp; Urban Development Corporation), a Government of India company\u00a0is issuing its Tax Free Bond. It would offer coupon rate up to 7.64% for retail investors depending on tenure. You can choose between tenure of 10 and 15 Years. The bond issue would be open for subscription for January 27 to February 10, 2016. About [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6804,"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":[209,1791,2971,2972,2939],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bond-\u2013-January-2016.png",571,336,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bond-\u2013-January-2016-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bond-\u2013-January-2016-300x177.png",300,177,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bond-\u2013-January-2016.png",571,336,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bond-\u2013-January-2016.png",571,336,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bond-\u2013-January-2016.png",571,336,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bond-\u2013-January-2016.png",571,336,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/01\/HUDCO-Tax-Free-Bond-\u2013-January-2016.png",120,71,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"HUDCO\u00a0(Housing &amp; Urban Development Corporation), a Government of India company\u00a0is issuing its Tax Free Bond. It would offer coupon rate up to 7.64% for retail investors depending on tenure. You can choose between tenure of 10 and 15 Years. The bond issue would be open for subscription for January 27 to February 10, 2016. About&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/6800"}],"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=6800"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/6800\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/6804"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=6800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=6800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=6800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}