REC bonds

This query is : Resolved

balasundaram (Querist)
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13 January 2011 please explain about Rural electrification bonds (time should hold, benifits, minimum purchase, when purchase and benifits )

CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) (Expert)
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13 January 2011 # Why invest in Infrastructure Bonds?

To save tax on Capital Gains

# When to invest in Capital Gains Tax Exemption Bonds?

Within six months of occurrence of Capital Gains

# Whether any TDS on interest?

No Tax deducted at source.

# What is the lock in period for the bonds?

3 years from the date of allotment in terms of section 54EC of IT Act, 1961

# What is the procedure for redemption of bonds?

* Against Bonds allotted in Physical form - Surrender duly discharged original Bond Certificate(s) alongwith duly filled/attested Option Form with respective registrar.
* Against Bonds allotted in Demat/Electronic form - Surrender copy of delivery instruction duly acknowledged by DP alongwith duly filled/attested Option Form with respective registrar

# What is the procedure for transfer of bonds?

Surrender duly executed transfer form and original Bond certificate(s) with respective registrar.

# What is the procedure for transfer of bonds to nominee name?

The nominee has to produce the following documents :

* Original bond certificate
* Copy of Death certificate attested by Notary
* Signature of nominee attested by Bank.
* Photo Identity proof of nominee

# What is the procedure for transmission of bonds to legal heir?

The legal heir has to produce the following documents :

* Original bond certificate
* Copy of Death certificate attested by Notary
* Copy of Probate or Letter of administration or Succession certificate or other legal representation from a Court of India and attested by Notary

# What is the procedure for name deletion on account of death of one of the joint holders?

The joint holder(s) have to produce the following documents :

* Original bond certificate
* Copy of Death certificate attested by Notary