Financial Daily from THE HINDU group of publications
Sunday, Sep 15, 2002
Financial Daily from THE HINDU group of publications Sunday, Sep 15, 2002 |
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Investment World
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Govt Bonds Money & Banking - Govt Bonds Tax-free bonds: An extra option
COME October 1, investors will have one more option of tax-free bonds (issued by the Government) to go with the RBI Relief Bond that is available now. There will be no ceiling on amount that can be invested unlike the RBI Relief Bond which caps investment at Rs 2 lakh. The features of the bond are: The new bond series will offer an interest rate of 7 per cent per annum. The interest earned will be tax-free. The minimum investment amount will be Rs 1,000 and in multiples of Rs 1,000. There will be a lock-in period of six years. The value of Rs 1,000 at the end of six years will be Rs 1,511. Interest will be payable half-yearly. The bonds will not attract wealth tax. Bonds are not transferable except by way of gift to relatives. The bonds will not be tradable in the secondary market and will not be eligible as collateral for loans from banks, financial institutions and NBFCs. The bonds will be available in demat as well stock certificate form.
Tax refunds to be faster
The Government has indicated that income-tax refunds would be done at a much faster pace. It has indicated that shortage of refund vouchers, due to supply problems from the Government's security press, had slowed to disbursement of tax refunds. Now these forms will be printed by approved private agencies as well. This will ensure that tax refunds are faster. In first five months of 2002-03, tax refunds have amounted to Rs 1,0580 crore.
Repaying forex loans
If you have borrowed money from relatives living abroad, you can pay back the money after a minimum period of one year. Earlier, the prescribed minimum time limit was seven years. This relaxation has been allowed by the RBI for interest-free loans. But the amount cannot exceed $20,000.
More for treatment abroad
If you are planning to go abroad for medical treatment, you can avail of more forex. The Reserve Bank of India has increased the limit for this purpose to $50,000. The payment for getting this forex must be made by cheque or debit to applicant's account. A declaration of the requirement will have to be given by the applicant. This is useful as so far, one had to produce an estimate from a doctor or hospital with likely expenses involved in the treatment. This cumbersome requirement is no longer required.
'Privelege Card' from SIB
South Indian Bank has launched a multi-purpose Privelege Card for its customers. The card will serve as an ATM card and can be used for banking at networked online branches across the country.
BL Research Bureau
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