NABARD launches Tax Savings Bond on Republic day

NABARD (National Rural Development)hasd launched Rural Bonds on Republic day. Subscription to these bonds will be eligible for deduction under Section 80(c) of the Income Tax act. The issue price is Rs 1000 per bond with minimum subscription of 5 bonds and thereafter in multiples of 1 bond. The bonds will of 5 years tenure and will carry a coupon rate of 8.25% for general public and 8.75% for senior citizens.

The income from this bond will be taxable in the hands of the investor.

In the next blog, i will mention about the various investment options that are available to individuals today with respect to saving tax under Section 80(c).