HUDCO Tax Free Bonds
Kindly note as per the SEBI circular Bidding is complusary for HUDCO tax Free bonds applications. You can contact us at 0124 4117773 for bidding of your application form.
Public Issue of HUDCO Tax Free Bonds: secured, redeemable, non-convertible debentures, issues by the Govt owned public sector Entreprise and a Mini Ratna Housing and Urban Development Corporation. The total issue size is Rs 750 Crore with a greeshoe option of retaining the oversubscription upto a maximum of shelf Limit i.e. 4802 Crores.
- The income by way of interest on these HUDCO Tax Free 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.T. Act, 1961. TDS on HUDCO Tax Free Bonds is not deductible at source also HUDCO Tax Free Bonds don’t attract wealth Tax.
- HUDCO Tax Free Bonds are Secured and are rated CARE AA+ and IND AA+. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. These tax free bonds are Issued by a public sector Enterprise owned by the Govt of India
- Tax free bonds can be held in both the forms - in demat as well as physical. i.e customers who do not hold any demat can also apply and get tax free income
- The bond will be listed at BSE. Customers who wish to exit from these bonds before maturity can do so by selling these bonds in secondary market at prevailing market prices. Given the high interest rates scenario prevailing right now, if the interest rates fall there would eb scope for capital appreciation.
- A Large portion of 40 % has been reserved for retail investors. Individuals, HUFs and HNI investing upto Rs 10 lacs qualify for Retail category.
- Retails customers who are investing upto 10 lacs in this bond get extra coupon of 0.25% on their investment.
- Got more questions about HUDCO Tax Free Bonds submit your query here.
About the Issuer:
HUDCO is a public sector company fully owned by Govt. of India for financing of housing and urban infrastructure activity in India. HUDCO was incorporated on April 25, 1970 under company Act 1956.