8. Tax Concessions:
- Income Tax : Interest on the bonds will be exempt from income tax under the Income Tax Act, 1961.
- Wealth Tax : The bonds will be exempt from Wealth Tax under the Wealth Tax Act.
9. Where the bonds cannot be issued immediately on receipt of the subscription due to non-availability or otherwise of the Bond forms, the receiving office will issue a provisional receipt in favour of the subscriber for the value of the subscription tendered by him. The receipt is to be discharged by all the holders at the time of collection of bond.
The bonds in the form of Bond Ledger Account will be transferable by execution of a transfer deed in the prescribed form. However, transfer shall not be deemed as complete until the name of transferee is registered as holder of the Bond in the Office of Issue. A new Bond Ledger Account will be opened in the name of the transferee for the remaining period by closing the BL Account of the transferer.
The Bond in the form of Promissory Note will be transferable by endorsement and delivery.
11. Notwithstanding the provision of paragraph 2 above, the Bonds can be held by a Banking Company, State Bank of India, an Associate Bank, a corresponding new bank and a Co-operative Bank as defined in the Banking Regulation Act, 1949 or a Regional Rural Bank established under Section 3 of the Regional Rural Banks Act, 1976, if the Bonds are transferred under sub-paragraphs (I) and (ii) of this paragraph for the limited purpose of obtaining advance against the security of such bonds.
The Bonds can be pledged with the Banks for the purpose of obtaining advances against the security of such bonds.
13.NRI's are eligible to invest in the scheme (subject to the Exchange Control Regulations).
- A sole holder or a sole surviving holder of a Bond, being an individual may nominate in part of this application form one or more persons who shall be entitled to the Bond and the payment thereon, in the event of his death.
- Where any amount is payable to two or more nominees and either or any of them dies before such payment becomes due, the title to the Bond shall vest in the surviving nominee or nominees and the amount being due thereon shall be paid accordingly. In the event of the nominee or nominees predeceasing the holder, the holder may make a fresh nomination.
- No nomination shall be made in respect of the Bonds issued in the name of a minor.
- A nomination made by a holder of a Bond may be varied by a fresh nomination in Part B or as near thereto as may be, or may be cancelled by giving notice in writing to the Public Debt Office of the Reserve Bank of India in Form C annexed to the application form.
- Every nomination and every cancellation or variation shall be registered at the Public Debit Office of the Reserve Bank of India where the bond is issued and shall be effective from the date of such registration.
- If the nominee is a minor, the holder of the Bond may appoint any person to receive the Bond/amount due in the event of his death during the minority of the nominee.
- The provisions contained in this paragraph shall apply only to the Bond issued in the form of Bond Ledger Account held by an individual.
- Nomination facility is not available for bonds held jointly or in the name of HUF or minor or in respect of bonds held in the form of Government Promissory Notes.
15. No deduction of any tax at source.
16. Availability of forms:
The forms are available with the offices of Reserve Bank of India, designated branches of State Bank of India and its subsidiaries and designated branches of Nationalised Banks.
Brokerage at the rate of Re.1/- (Rupee one only) per Rs.100/- will be paid to brokers registered with Reserve Bank of India as also to P.P.F. and U.T.I. agents, who will have to enrol themselves with the receiving offices of Reserve Bank of India. Brokerage is allowed on reinvestment.
Instruction for filling up the application for Relief Bonds
- Applications for bonds must be made for a minimum of Rs.100/- and in multiples thereof.
- Applications for bonds may be made in Part-A of the form attached thereto or in any other form as nearly as thereto stating clearly the amount and the full name and address of the applicant.
- Before submission of the application form at the Reserve Bank of India Offices/designated Bank branches, investors are required to ensure that it is filled up properly as incomplete applications are liable to be rejected.
- Applications should be accompanied by the necessary payment in the of Cash/Bank Draft or cheques. The cheques/Demand Drafts should be drawn in favour of
- RBI when deposited at the RBI offices
- Receiving Bank when deposited at the designated Bank branches and crossed Account Payee. "Outstation cheques will not be accepted." Investors would be issued temporary receipts for the payment which (duly discharged on the reverse) will be later exchanged for bonds.
- The investor should clearly indicate option about the form for issue of the bond i.e. in the form of a Government Promissory Note or a Bond Ledger Account.
- It should be indicated whether the interest is required to be paid under Option 'A' i.e. through post dated interest warrants on a half yearly basis ( in case of Promissory Note) or under Option'B' i.e. cumulative on maturity. The choice of option once exercised is final and in case no option is exercised the application will be deemed to be made under Option 'A' i.e. Interest payable half yearly and application processed accordingly.
- Please fill up the names of the applicants/minor/Karta of HUF in the appropriate place in the application form in block letters. Accurate address with Pin Code No. must be given. Also indicate the full name of the nominee in block letters.
- The investor is required to fill in the denomination wise break-up in which the bonds are required by them (subject to a minimum of Rs.1000/- and further in multiples thereof) at appropriate place in the application form.
- The place (name of city) where the investor wishes to draw interest half yearly/on maturity should be indicated at the appropriate place in the application form.
- Nominations should be made only at the appropriate place in the application form and not in the alternative form.