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The Tax Publishers Floating Rate Savings Bonds, 2020 (Taxable) 1. Who can invest The Bonds may be held by -- (i) a person resident in India, (a) in her or his individual capacity, or (b) in individual capacity on joint basis, or (c) in individual capacity on any one or survivor basis, or (d) on behalf of a minor as father/mother/legal guardian (ii) a Hindu Undivided Family. It is provided that if the holder of the bond subsequently becomes Non- Resident Indian during the currency of the bond, shall continue to hold the Bonds and repatriability of interest/maturity proceeds would be subject to provisions of FEMA guidelines. person resident in India shall have the same meaning as defined in clause (v) of Section 2 of the Foreign Exchange Management Act 1999. 2. Limit of investment There is no maximum limit for investment in the Bonds. 3. Tax treatment Interest on the bonds is taxable under the Income Tax Act, 1961 as applicable according to the relevant tax status of the Bond holders. 4. Issue price (i) The Bonds will be issued at par i.e. at Rs. 100.00. (ii) The Bonds will be issued for a minimum amount of Rs. 1,000/- (face value) and in multiples thereof. Accordingly, the issue price will be Rs. 1,000/- for every Rs.1,000/- (Nominal) face value. 5. Subscription (i) Subscription to the bonds will be in the form of cash (upto Rs. 20,000/- only)/ drafts/cheques or any electronic mode acceptable to the Receiving Office. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Floating Rate Savings Bonds, 2020 (Taxable)

1. Who can invest

The Bonds may be held by --

(i) a person resident in India,

(a) in her or his individual capacity, or

(b) in individual capacity on joint basis, or

(d) on behalf of a minor as father/mother/legal guardian

(ii) a Hindu Undivided Family.

It is provided that if the holder of the bond subsequently becomes Non- Resident Indian during the currency of the bond, shall continue to hold the Bonds and repatriability of interest/maturity proceeds would be subject to provisions of FEMA guidelines.

person resident in India shall have the same meaning as defined in clause (v) of Section 2 of the Foreign Exchange Management Act 1999.

2. Limit of investment

There is no maximum limit for investment in the Bonds.

3. Tax treatment

Interest on the bonds is taxable under the Income Tax Act, 1961 as applicable according to the relevant tax status of the Bond holders.

4. Issue price

(i) The Bonds will be issued at par i.e. at Rs. 100.00.

(ii) The Bonds will be issued for a minimum amount of Rs. 1,000/- (face value) and in multiples thereof.

Accordingly, the issue price will be Rs. 1,000/- for every Rs.1,000/- (Nominal) face value.

5. Subscription

(i) Subscription to the bonds will be in the form of cash (upto Rs. 20,000/- only)/ drafts/cheques or any electronic mode acceptable to the Receiving Office.