1. What is the Tax Treatment of interest on these Bonds?
The interest received on these bonds shall be treated as income from any other source and shall form part of the total income of the assessee in that financial year in which they are received.
2. Who are the eligible investors?
Only Resident Indian Individuals (Major) and HUF can invest in these bonds.
3. Can a Minor apply for subscription to these bonds?
A minor is not eligible to apply for subscription to these bonds.
4. Are these infrastructure bonds Tax Free?
No, the interest received in these bonds are not tax free. The investor is liable to pay tax on the interest received.
5. Will TDS be deducted on these bonds?
No TDS shall be deducted on the interest received as these bonds are issued compulsorily in Demat mode and shall be listed on Bombay Stock Exchange.
6. I don’t have Demat Account. Can I apply?
The bonds shall be compulsorily issued in Demat mode, so investors without demat shall not be eligible.
7. I only have a joint De-mat account. Can I apply in my own name only?
The name of applicant shall be same as the holders of Demat account. In case of single applicant the demat account shall also be held in the name of the same single applicant.
8. Can I apply in joint names?
Yes application can be made in joint names with a maximum of three applicants, however the demat account shall also be held in the joint names and order of applicant shall be the same as appearing in the demat account.
9. What is the maximum amount for which the benefit u/s 80CCF be availed?
Maximum benefit to an investor shall be Rs. 20,000/- under section 80CCF of the Income Tax Act, 1942
10. What would happen if I apply amount more than Rs. 20,000/-?
The allotment shall be made for the sum applied, however the benefit under section 80CCF may only be availed for a maximum sum of Rs.20,000/-
11. Can I invest in all the four option?
Yes an applicant ma