15 July 2009
The US-64/ARS bond holders get 6.75 per cent tax-free interest, which was very attractive when the scheme was conceptualised.
The US-64/ARS bonds were issued in June 2003 to holders of the erstwhile Unit Scheme 64, as a conversion option . Bond holders also benefited from the no lock-in period and the guarantee provided by the government.
Income is exempt u/s 10 (35) of The Income tax Act,1961.
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