Power finance corporation pfc has been allotted rs 5000 crore for raising funds through tax free bonds. Benefits of investing in pfc tax free bonds icici direct. Allotment status of pfc tax free bonds is now available to check online. Tax free bonds 2014latest price in secondary market.
Secondly, taxfree bonds issued in 2014 are now trading at a. Stateowned power finance corporation pfc is going to launch its second tranche of bonds issue of rs 100 crore on monday, february 18, 20, with an option. Pfc tax free bonds would open for subscription on 5 th october, 2015. For bidding of your application, any further info or to invest in pfc tax free bonds. Interest rates have been gradually coming down on these tax free bonds since last year and i believe the current issue from pfc has the lowest interest rate of any tax free bond issued since last year. Minimum application can be made for a minimum of five bonds rs 5000.
Listed below are the major benefits offered by tax free bonds. So let me sum up the recently concluded fy 20 14 tax free bonds. You can download various forms details pertaining to bonds as mentioned below. These can be held in both the forms in demat as well as physical. Public issue by power finance corporation limited pfc of tax free bonds of face value of rs. These bonds are benchmarked to the 10year government security bonds. Basics of tax free bonds get dual benefit of fixed return and tax free income 2. Forthcoming tax free bonds are good investment opportunity. Pfc tax free bonds offering highest interest rates amongst the tax free bonds currently available in the market.
Information memorandum pfc capital gain tax exemption bond series iii. Tax free bonds in the nature of secured, redeemable, nonconvertible. Here investment in tax free bonds will yield ror of 8. Central government authorises certain entities such as nhai, pfc, rec etc to issue tax free, secured, redeemable, non convertible bonds.
Power finance corporation of india pfc, pfc 54ec capital gain bonds series iv, download, na. For queries pertaining to public issue of tax free bonds 201112 and 20 14, you can contact the above mentioned persons. Tax free bonds india, tax saving investment, how to invest. As it is expected that investment in tax free bonds would give better returns than bank fixed deposits in the year 20. Tax free bonds are issued by government enterprises where the interest is tax free. There was a huge cry from retail investors as well as from advisers to invest in tax free bonds. Oct, 20 power finance corporation pfc has been allotted rs 5000 crore for raising funds through tax free bonds. Now pfc power finance corporation has come out again with its tax free bonds which would be open for subscription till march 15, 20. To finance new and ongoing schemes of expansion, ntpc has made various issues of bonds on both public and private placement basis from time to time. Given the tax free interest on offer and the liquidity, it is a good investment option for fixed income investor.
Check the option power finance corporation limited tax free bonds 20. Nhpc and pfc tax free bonds are offering identical returns. In this week, there is wave of seconf tranche of tax free bonds. A few more psus are going to issue tax free bonds in coming days. Pfc tax free bonds 2015 suits investors who are looking for safe, regular income and are in the higher tax bracket. Staterun power finance corp pfc plans to raise rs 100 crore through tax free bonds issue that begins on monday today. Rec limited formerly rural electrification corporation limited is a navratna company under the administrative control of the ministry of power. Public issue of tax free bonds 2012 the contact details of registrar to the issue for all queries related to above issue is as under. Rural electrification corporation limited rec 54ec cgte bonds. Iifcl tax free bonds, india infrastructure finance company. With yield at current levels and considering the future movement, this may be the last issue offering such a high interest rate and so it forms a.
Power finance corporations rs 700crore taxfree bond issue. Pfc is the latest company to announce tax free bonds, and their issue will start on monday february 18th 20, and close on march 15 20. Jan 08, 20 after rural electrification corporation rec, power finance corporation pfc and india infrastructure finance company iifcl tax free bonds, another governmentcontrolled company housing and urban development corporation hudco, is issuing taxfree bonds between january 9 and january 22, 20. Sep 29, 20 download application form for iifcl tax free bonds here important do read the bidding related information before submitting the application to the banker or call 8800770 for queries the government has allowed these public sector institutions to raise rs 48,000 crore through taxfree bonds in 2014 to meet their infrastructure investment. Future tax free issues would broadly offer 2025 bps lower rates, he said. Form 14429 tax exempt bonds voluntary closing agreement. Allotment redemption interest secured listed on private. Oct 06, 2015 firstly, the pfc issue was finalised before the latest rbi rate cut and the reduction did not reflect in the pricing. Page power finance corporation limited kosmic karvy. Sep 28, 2015 few days back ntpc came with taxfree bonds and it was almost oversubscribed within few days. Bonds tenure yrs category of investor face value rs. Pfc tax free bonds salient features of the proposed tax free bonds tax benefits us 10 15 iv h of the income tax act, 1961 the bonds are tax free in nature and the interest on the bonds will not form. Personalfn analyses the issue and shares its views on whether this is a. I issue by submission of a valid application form and payment of the.
The proposed issue is part of its plan to garner rs 5,000 crore by way of issuing tax free. If you want to buy the bonds in the demat form, you need to have a demat account. If you are investing in taxfree bonds during the public issue, you have the option to apply online as well as offline for it. Oct 14, 20 benefits of investing in pfc tax free bonds. Public issue of power finance corporation ltd tax free bonds. Tax free bonds are good investment option for people falling in 20% or 30% tax bracket. Content trading members of the exchange are hereby informed that the under mentioned securities of power finance corporation ltd. After hudco and rec, power finance corporation has now come out with its tax free bonds. Investors can enjoy tax benefits by investing in tax free bonds. Bond name details download form resident download form nris. When you invest in a tax free bonds of any issuer, you are giving a loan to that issuer and in return the. Karvy is registrar of the issue and allotment status can be checked on their website.
Tax free bonds come with a lot of attractive benefits. You can avail these bonds in physical form as well as in demat mode. Pfc tax free bonds synergee capital services pvt ltd. Jan 08, 20 if you fall in the highest income bracket, means if you are having income exceeding rs. Bond refers to a security issued by a company, financial institution or government, which offers regular or fixed payment of interest in return for borrowed money for a certain period of time. Download the application forms of iifcl tax free bonds. Nov 12, 20 the institute is conscious of the need to reach the masses across the country, which is possible, if the education is free.
Jun 18, 2014 there was a huge cry from retail investors as well as from advisers to invest in tax free bonds. But this is just a starting as you will also see other psus lining up there tax free bonds. For queries pertaining to public issue of tax free bonds 201112 and 2014, you can contact the above mentioned persons. The income by way of interest on these bonds is fully exempt from income tax and shall not form part of total income as per provisions under section 10 15 iv h of i. Personalfn analyses the issue and shares its views on whether this is a suitable investment proposition for investors. Pfc tax free bonds salient features of the proposed tax free bonds tax benefits us 10 15 iv h of the income tax act, 1961 the bonds are tax free in nature and the interest on the bonds will not form part of the total taxable income of bondholders. Avail the opportunity to invest in 54ec bonds to gain tax deductions. Fintotal news analysis pfc tax free bonds february 20. Nhai and pfc tax free bonds the financial literates. Pfc tax free bonds oversubscribed out of the total issue size, 40% is reserved for retail investors, with the balance being offered to hnis, qibs and corporates. Read expert opinions, top news, insights and trends on the economic times.
The tax free bonds issue would open from 14oct 20 and close on 17. Indian railway finance corporation irfc bonds are the new tax free bonds that have hit the market. Registrar and transfer agent power finance corporation. Tax free bonds best tax saving bonds for investment. Now it is the turn for pfc tax free bonds of oct2015. As per sebi guidelines, bidding is mandatory before banking the application form, else the application is liable to get rejected. If you are investing in taxfree bonds after the public issue, you can invest via your trading account, just like you invest in shares. In fact, ntpc has been a forerunner in the issue of bonds. Sep 24, 2015 pfc is govt of india enterprise and it is safe to invest in such bonds. Pfc tax free bonds are rated aaa by three rating agencies and are offering 17 basis points. Power finance corporation limited kotak securities.
Please click here to check allotment of pfc tax free bonds oct nov 20. As a part of this knowledge initiative, the institute is leveraging technology through moocs mass online open courses and has developed comprehensive primer on companies act, 20 and is the only organisation to offer the same through moocs, free of cost to. Nov 19, 20 listing of tax free bonds of power finance corporation ltd. Oct 09, 20 power finance corporation pfc tax free bonds to open on oct 14, 20 and close on 1110 20. If you are investing in tax free bonds during the public issue, you have the option to apply online as well as offline for it. Secondly, tax free bonds issued in 20 14 are now trading at a premium after the repo rate cut. Rec limited funds their business with market borrowings of various maturities, including bonds. The issue will be open for subscription from october 5th, 2015 and closes on october 9th, 2015. Power finance corp tax free bonds issue to open on feb 18. Security isin number details face value issue date maturity date interest rate int payment date putcall option security isin number details face value issue date maturity date interest rate int payment date putcall option power finance corporation limited ine4e07117 7. It is very difficult to keep abreast with all of them.
Public issue of tax free bonds 2012 the contact details of registrar to. If you are in a high tax bracket of 30%, your pre tax return works out to be 11%. Should you go for nhpc, pfc or iifcl bonds that are being offered or wait for future offers. Hence we can conclude that it is better to go for tax free bond because it gives us return of rs. The capital gains 54ec bonds eligible for tax deductions can be issued only by rec rural electrification corporation ltd, pfc power finance corporation ltd and nhai national highways authority of india. Tax free bonds shelf prospectus for public issue of tax free bonds. Pfc tax free bonds offering highest interest rates in tax. The proposed issue is part of its plan to garner rs 5,000 crore by way of issuing tax free securities in the current fiscal 2012. Firstly, the pfc issue was finalised before the latest rbi rate cut and the reduction did not reflect in the pricing. Pfc draft shelf prospectus karvy investment banking about us. Ntpc tax free bonds of 2015 got oversubscribed by 11 times.1198 1471 140 515 433 1376 1533 1006 546 768 1547 513 98 897 774 979 294 423 111 28 497 254 86 1556 601 1292 1200 901 609 1390 14 1230 360 242 272 1080 572 668 324 1175 1182 1385 943