NTPC Tax Free Bonds 2015- return upto 7.62% per annum

National Thermal Power Corporation (NTPC), the largest power generation company of the India is issuing its tax-free bonds which would fetch returns up to 7.62% per annum. There are three types of bonds on offer—10-year maturity with coupon of 7.36%, 15-year maturity with 7.53% interest and 20-year maturity with 7.62% interest. The issue will start on 23^rd September and would remain open for 7 days till 30^th September. Tax-free bonds offer a long-term investment option along with regular tax-free annual income.

Features of NTPC Tax Free Bonds

1. Issue starts from September 23rd and would end on 30th, 2015 but can be pre-closed on full subscription.
2. NTPC Tax-Free Bonds are rated AAA by CRISIL, ICRA and CARE.
3. Annual Coupon Rates for Retail Investors are 7.36% for 10 Years, 7.53% for 15 Years and 7.62% for 20 Years.
4. Annual Coupon Rates are 0.25% less for non-retail investors i.e. HNIs, QIBs and corporate subscribers.
5. The interest would be paid yearly with NO TDS deduction.
6. Non-Resident Indians (NRIs) can too invest in NTPC Tax-Free bonds but on non-repatriation basis only.
7. The Face value of each bond is Rs.1,000
8. Minimum Investment is as low as Rs.5,000 i.e. 5 Bonds and further in multiple of 1 bond thereof.
9. Maximum Investment Limit for Retail Investor is capped at Rs.10 Lakhs
10. Allotment would be based on First Come First Serve
11. NTPC Tax-Free Bonds would be listed on BSE and NSE and will attract capital gains tax on exit through secondary market.
12. No tax deduction for the investment amount can be claimed u/s 80C.
13. These tax-free bonds can only be held in DEMAT form i.e. no physical form.

Therefore, if you are looking for a constant tax-free return for the long term, then this bond is good option to invest.

For more details visit: - http://www.ntpc.co.in/taxfreebonds.html