Bonds will bear interest @ 8.00% p.a. and are payable half-yearly. The interest payment dates are February 1 and August 1 for non-cumulative investments. For investors who have chosen the cumulative option, the value of the investments at the end of 6 years would be Rs. 1601 (being Principal and Interest) for every Rs. 1000 invested. Interest on the Bonds is taxable under Income Tax Act 1961.
Bonds will bear interest @ 8.00% p.a. and are payable half-yearly. The interest payment dates are February 1 and August 1 for non-cumulative investments. For investors who have chosen the cumulative option, the value of the investments at the end of 6 years would be Rs. 1601 (being Principal and Interest) for every Rs. 1000 invested. Interest on the Bonds is taxable under Income Tax Act 1961.