In a notification issued today, the finance ministry has, for the first time, opened the saving bonds window for charitable institutions, trusts and universities.
These institutions can invest in 8 per cent savings bonds. Hitherto, these bonds were open for subscription for individuals and Hindu undivided families only. NRIs, however, cannot subscribe to these bonds.
The 8 per cent taxable bonds, to be available for subscription from April 21, will have a face value of Rs 1,000 and a tenure of six years. There will be no cap on investment and the instrument will neither be tradable in the secondary market nor transferable. While it will be exempt from wealth tax, it will not be eligible as collateral against loans. It will be available throughout the year.
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The Centre hopes to rake in at least Rs 6,500 crore from the 8 per cent bonds in the next fiscal. The 8 per cent bonds are in addition to the five-year 6.5 per cent tax-free savings bonds that were notified by the government earlier this month. The 6.5 per cent bonds, however, are open only for individual investors.
Meanwhile, the finance ministry suspended subscription to the two series of Relief Bonds