{"id":6931,"date":"2016-03-01T18:06:43","date_gmt":"2016-03-01T12:36:43","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=6931"},"modified":"2016-03-07T18:15:13","modified_gmt":"2016-03-07T12:45:13","slug":"hudco-tax-free-bond-march16","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/hudco-tax-free-bond-march16\/","title":{"rendered":"HUDCO 7.69% Tax Free Bond &#8211; March 2016 &#8211; Should You Invest?"},"content":{"rendered":"<figure id=\"attachment_6932\" aria-describedby=\"caption-attachment-6932\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-6932\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bond-\u2013-March-2016-300x179.png\" alt=\"HUDCO Tax Free Bond \u2013 March 2016\" width=\"300\" height=\"179\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bond-\u2013-March-2016-300x179.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bond-\u2013-March-2016.png 567w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-6932\" class=\"wp-caption-text\"><strong>HUDCO Tax Free Bond \u2013 March 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 <strong>Tranche II<\/strong> of\u00a0<span style=\"text-decoration: underline;\"><strong>Tax Free Bond<\/strong><\/span>. It would offer coupon rate up to 7.69% 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>March 2 to 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: March 2 to 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>\u00a07.29% for 10 Years and 7.69% 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 7.69% interest on deposit a person in 30% tax bracket should actually get pre tax return of 11.13%.<\/em><\/p>\n<figure id=\"attachment_6933\" aria-describedby=\"caption-attachment-6933\" style=\"width: 757px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-6933\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bonds-\u2013-March-2016-Interest-Rate-1024x510.png\" alt=\"HUDCO Tax Free Bonds \u2013 March 2016 - Interest Rate\" width=\"757\" height=\"377\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bonds-\u2013-March-2016-Interest-Rate-1024x510.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bonds-\u2013-March-2016-Interest-Rate-300x149.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bonds-\u2013-March-2016-Interest-Rate-768x382.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bonds-\u2013-March-2016-Interest-Rate.png 1169w\" sizes=\"(max-width: 757px) 100vw, 757px\" \/><figcaption id=\"caption-attachment-6933\" class=\"wp-caption-text\"><strong>HUDCO Tax Free Bonds \u2013 March 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.<\/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 offer tax free interest rate of more than 8.7%. So you should first exhaust that 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.<\/p>\n<p style=\"text-align: justify;\">You can <a href=\"http:\/\/www.apnaplan.com\/ipo-asba\/\">apply online through ASBA<\/a> or download the Physical Form from the <a href=\"http:\/\/www.fountainheadindia.in\/FormPrinting\/FrmPrinting.aspx?CompanyId=156&amp;IsVisible=0&amp;IsBond=1\" target=\"_blank\" rel=\"noopener\">Edelweiss Financial Services<\/a> 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 Tranche II of\u00a0Tax Free Bond. It would offer coupon rate up to 7.69% 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 March 2 to 10, 2016. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6932,"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\/03\/HUDCO-Tax-Free-Bond-\u2013-March-2016.png",567,338,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bond-\u2013-March-2016-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bond-\u2013-March-2016-300x179.png",300,179,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bond-\u2013-March-2016.png",567,338,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bond-\u2013-March-2016.png",567,338,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bond-\u2013-March-2016.png",567,338,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bond-\u2013-March-2016.png",567,338,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2016\/03\/HUDCO-Tax-Free-Bond-\u2013-March-2016.png",120,72,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 Tranche II of\u00a0Tax Free Bond. It would offer coupon rate up to 7.69% 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 March 2 to 10, 2016.&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/6931"}],"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=6931"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/6931\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/6932"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=6931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=6931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=6931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}