Tax Finance Info: NSS

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Inflation Indexed National Saving Securities (IINSS) Salient Features</h2>
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<span lang="EN-US">As per the press release of the
<b>RBI</b>, dated 29<sup>th</sup> November, 2013 it published that the <b>Reserve Bank of
India (RBI)</b> was to launch <b>Inflation Indexed National Saving Securities (IINSS)</b>
in consultation with the government of India. And the same is launched
successfully. The Inflation Indexed National Saving Securities this time are
cumulative in nature.<o:p></o:p></span></div>
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<span lang="EN-US">The features of the Inflation
Indexed National Saving Securities are given below so that the interested
people can go for it and the issue is open from 23th December, 2013 to 31<sup>st</sup>
December, 2013. So here are the salient features of IINSS which will be helpful
for the people willing to subscribe the issue.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Eligibility of Subscribers</span></b><span lang="EN-US">: The subscriber must be an
Indian Citizen. The Indian citizens who fall in the categories viz. Individuals,
Hindu Undivided Family (HUF), charitable institutions registered under section
25 of the Indian Companies Act and Universities incorporated by Central, State
or Provincial Act or declared to be a university under section 3 of the
University Grants Commission Act, 1956 (3 of 1956) are only eligible for
subscribing and investing in the security.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Face value of the Security</span></b><span lang="EN-US">: Rs. 5000/-<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Maximum Investment per applicant</span></b><span lang="EN-US">: One applicant can invest upto
Rs. 5 Lacs i.e. maximum 100 securities can be purchased and minimum one
security is to be purchased it means the minimum investment amount is Rs. 5000.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Form of Security: </span></b><span lang="EN-US"> The security will be in the form of Bond. The
amount of investment will be held in the Bond Ledger Account till the tenure of
the security.<b><o:p></o:p></b></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Rules & Regulations: </span></b><span lang="EN-US">The provisions of the Government
Securities Act, 2006 will be applicable.<b><o:p></o:p></b></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Tenure of the Security</span></b><span lang="EN-US">: The security is to be held for
tenure of 10 years.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Interest on Securities</span></b><span lang="EN-US">: Real Interest Rate plus
Inflation Rate. Where Real Interest Rate is fixed @ 1.5% per annum and the
Inflated Interest rate depends upon the retail inflation rate. And the interest
will be compounded half yearly.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">CPI Linkage</span></b><span lang="EN-US">: For calculating Inflation, final combined CPI will be used
as the reference CPI with a lag of three months.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Distribution of Securities: 
</span></b><span lang="EN-US">The
securities will be available at all agency banks like State Bank of India and
its branches, HDFC Bank, ICICI Bank, and Axis Bank, Stock Holding Corporation
of India Ltd (SHCIL).<b><o:p></o:p></b></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Early Redemption provisions and charges: </span></b><span lang="EN-US">The Securities can be
redeemed before completion of tenure of 10 years but at the following
conditions:<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">         
</span></span><span lang="EN-US">Securities can be redeemed only after completion of 3 Years
from the date of purchase of securities.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">         
</span></span><span lang="EN-US">Senior citizens above 65 years can redeem the same after
completion of 1 Year from the purchase of securities.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">         
</span></span><span lang="EN-US">The penal charges equal to 50% of the last coupon will be
payable for early redemption.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">         
</span></span><span lang="EN-US">The securities can be redeemed only on coupon dates.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Documents required: </span></b><span lang="EN-US">In case where the investor
invests Rs. 50,000 or more have to provide the Permanent Account Number and
when the investor does not hold PAN declaration in Form No.60 or 61, whichever
is applicable is to be provided.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Tax Applicability:</span></b><span lang="EN-US"> The interest on securities is
taxable under the head “Income from Other Sources” and will be taxed at an
applicable slab rate.<o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Other Uses: </span></b><span lang="EN-US">The Security will be eligible to act as a collateral
security against availing finance from the banks financial Institutions and Non
Banking Financial Companies, (NBFC).<b><o:p></o:p></b></span></div>
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<span lang="EN-US" style="font-family: Wingdings; mso-bidi-font-family: Wingdings; mso-fareast-font-family: Wingdings;">ü<span style="font-family: 'Times New Roman'; font-size: 7pt;">  </span></span><b><span lang="EN-US">Other Features:<o:p></o:p></span></b></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">         
</span></span><span lang="EN-US">The IINSS are non transferable. But the same can be
transferred to the nominee in the case of death of the investor. <o:p></o:p></span></div>
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<span lang="EN-US" style="font-family: "Times New Roman","serif"; mso-fareast-font-family: "Times New Roman";">-<span style="font-family: 'Times New Roman'; font-size: 7pt;">         
</span></span><span lang="EN-US">Nomination Facility is available. The investor can nominate
one or more nominees who will be the beneficial owner of the security in case
of death of the investor.<o:p></o:p></span></div>
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Inflation Indexed National Saving Securities (IINSS) Salient Features

Inflation Indexed National Saving Securities (IINSS) Salient Features As per the press release of the RBI , dated 29 th November, ...

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