Fixed Deposit in India

Introduction

Key Benefits

Rate Of Intrest

Who Can Invest?

Download form

Corporate fixed deposit is a deposit in company for a fixed rate of return over a fixed period of time. The rate of interest is determined by the tenure of the deposit as well as other factors. NBFC’s, Housing Finance & Manufacturing companies accept such deposits. The corporate fixed deposit is governed by section 58A of the Companies Act.Company fixed deposit is a good option for investment as they provide higher rate of interest compared to bank deposits. They are a good source of regular income by means of monthly, quarterly, half-yearly, or yearly interest incomes.Performance of the company should be reviewed from time to time and at the maturity of deposit, by analyzing Balance Sheet & Share Prices movement. This will be helpful in deciding whether the deposit should be renewed or not.

1. Higher rates of interest.

2. Flexible tenure ranging from 1 year to 10 years.

3. Senior citizen benefits available.

4. Prematurity clause is available.

5. Loan Facility Available.

6. Nomination facility available.

7. No TDS in case the interest is only Rs. 5000 in one financial year.

8. Regular interest incomes – Monthly, Quarterly, Half-yearly, or Yearly

Click here to know about Rate of Interest (ROI) Chart

Who Can Invest ?

Company	Individual & HUF	Minor Through Guardian	NRI through NRO Account	Corporate (Pvt/Ltd Company)	Charitable Trust	Educational Trust	Institution (College/ University)
Bajaj Finance Ltd.	Yes	Yes	No	Yes	No	Yes	Yes
Cent Bank Home Finance Ltd.	Yes	Yes	No	Yes	Yes	Yes	Yes
DHFL	Yes	Yes	Yes	Yes	Yes	Yes	Yes
GATI Ltd.	Yes	Yes	No	No	Yes	No	No
GRUH Finance Ltd.	Yes	Yes	No	Yes	Yes	Yes	Yes
HDFC Ltd.	Yes	Yes	Yes	Yes	Yes	Yes	Yes
HUDCO Ltd.	Yes	Yes	Yes	Yes	Yes	Yes	Yes
J K Lakshmi Cement Ltd.	Yes	Yes	No	No	No	No	No
J K Tyre industries Ltd.	Yes	Yes	No	No	No	No	No
KTDFC	Yes	Yes	Yes	Yes	Yes	Yes	Yes
LIC Housing Finance Ltd.	Yes	Yes	Yes	Yes	Yes	Yes	Yes
M&M Financial Services Ltd.	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Omaxe Ltd.	Yes	Yes	Yes	Yes	Yes	Yes	Yes
PNB Housing Finance Ltd.	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Shriram Transport Finance	Yes	Yes	No	Yes	Yes	Yes	Yes
Shriram City Union Finance	Yes	Yes	No	Yes	Yes	Yes	Yes

1	Aadhar Housing Finance Ltd	Download
2	Bajaj Finance Ltd.	Download
3	Cent Bank Home Finance	Download
4	DHFL Dewan Housing	Download
5	Form 15 G	Download
6	Form 15 H	Download
7	HDFC 7.75% RBI Bond Cumulative	Download
8	HDFC 7.75% RBI Bond NON Cumulative	Download
9	HDFC FD KYC Form for Individual	Download
10	HDFC FD KYC Form for Non Individual	Download
11	HDFC Ltd for Individual	Download
12	HDFC Ltd for NRI	Download
13	HDFC Ltd for NRI	Download
14	HDFC Ltd for Trust	Download
15	HDFC Ltd Smart Deposit for Corporates	Download
16	J K Lakshmi Cement Ltd	Download
17	J K Tyre & industries Ltd	Download
18	KTDFC (Kerala Transport Development Finance corporation Ltd.)	Download
19	LIC Housing Finance Ltd	Download
20	M&M Financial Services Ltd.	Download
21	Omaxe Ltd.	Download
22	PNB Housing Finance Ltd	Download
23	Shriram City Union Finance Ltd.	Download
24	Shriram Transport Finance Ltd	Download

What is Bonds?

Types of BONDS

Capital Gain Bonds

In accordance with section 54 EC of the Income Tax Act, 1961, all categories of tax payers would be eligible to save tax in respect of long term capital gains by making investments in certain Bonds prescribed.
These bonds are classified as ‘long-term specified asset’ and are issued by REC, NHAI, PFC and IRFC.
These bonds are specifically for investors who have made some long term capital gains, and would like to save capital gain taxes on this amount.
Only long term capital gains are eligible for these bonds though, and short term gains are not covered under section 54EC.
The interest from these bonds is fully taxable

Condition for Exemption from Tax U/S 54 EC:

The entire capital gain realized is invested within 6 Months of the date of transfer in eligible bonds
Such investment is held for 5 Years
To avail of capital gain exemption, the bonds so acquired cannot be transferred or converted into money or any loan or advance can be on security of such bond with 3 years from date of acquisition else, the benefit would be withdrawn.
If the amount invested in bonds is less than the capital gains realized, only proportionate capital gains would be exempt from tax.

7.75% RBI Taxable Bonds

The 7.75% Government of India Savings (Taxable) Bonds, 2018 is a bond issued by the Reserve bank of India (RBI) commencing April 21, 2003. The bonds are available for Individuals & HUF. As the name indicates, the rate of interest offered on the bonds is 7.75% per annum. Interest on bonds is taxable and it has a lock in of 7 (seven) years. Since bonds are issued on behalf of Government of India, it is the safest investment any investor can look for.

Tenure	ROI(%) P.A	Issue Price	Compounding
7 Years	7.75%	Rs.1000	Half Yearly

Download Forms

HDFC RBI Bond-CumulativeorHDFC RBI Bond-Non Cumulative

Salient Features

Eligibility for Investments

The Bonds may be held by An individual, not being a Non-Resident Indian (NRI) , A Hindu Undivided Family.

Limit of Investment

There will be no maximum limit for investment in the Bonds

Tax Treatment

Interest on the Bonds will be taxable under the Income-Tax Act, 1961 as applicable according to the relevant tax status of the bond holder.

Interest on the Bonds will be taxable under the Income-Tax Act, 1961 as applicable according to the relevant tax status of the bond holder.
The Bonds will be exempt from Wealth-tax under the Wealth- Tax Act, 1957.

Issue Price

The Bonds will be issued at par

The Bonds will be issued at par
The Bonds will be issued for a minimum amount of Rs. 1000/- (face value) and in multiples thereof. Accordingly, the issue price will be Rs.1000/- for every Rs.1,000/-(Nominal) face value.

Subscription

Subscription to the Bonds will be in the form of Cash/ Drafts/ Cheques or any electronic mode acceptable to the receiving office

Subscription to the Bonds will be in the form of Cash/ Drafts/ Cheques or any electronic mode acceptable to the receiving office.
Cheques or drafts should be drawn in favour of“HDFC Bank A/C Govt of India 7.75% Saving Taxable Bond 2018”.

Nomination

A sole holder or all the joint holders (investors) of a Bond, being individual/s, may nominate in Form B annexed to this notification (Annexure 4) or as near thereto as may be, one or more persons who in the event of death of the sole holder/all the joint holders, as the case may be, would be entitled to the Bonds and to the payment due thereon, provided that the person or each of the persons nominated is himself/herself is competent to hold the Bond.

A sole holder or all the joint holders (investors) of a Bond, being individual/s, may nominate in Form B annexed to this notification (Annexure 4) or as near thereto as may be, one or more persons who in the event of death of the sole holder/all the joint holders, as the case may be, would be entitled to the Bonds and to the payment due thereon, provided that the person or each of the persons nominated is himself/herself is competent to hold the Bond.
Where the nomination has been made in favour of two or more nominees and either or any of them dies before such payment becomes due, the title to the Bonds shall vest in the surviving nominee or nominees and the amount being due thereon shall be paid accordingly.
In the event of the nominee or nominees predeceasing the holder, the holder may make a fresh nomination.
The investor(s) can make separate nomination for each investment.
No nomination shall be made in respect of the Bonds issued in the name of a minor.
A nomination made by a holder of a Bond can be changed by a fresh nomination in Form B, or as near there to as may be, or may be cancelled by giving notice in writing to the Receiving Office in Form C, annexed to the notification (Annexure 5).
Every nomination and every cancellation or variation shall be registered at the Receiving Office where the Bond is issued and shall be effective from the date of such registration.
If the nominee is a minor, the holder of Bonds may appoint any person to receive the Bonds/ amount due in the event of his / her / their death during the period the nominee is a minor.

Transfer ability

The Bonds held to the credit of Bonds Ledger Account of an investor shall not be transferable.

Interest

The Bonds will be issued in ‘Cumulative’ or ‘Non-cumulative’ form, at the option of investor and will bear interest at the rate of 7.75% per annum.

The Bonds will be issued in ‘Cumulative’ or ‘Non-cumulative’ form, at the option of investor and will bear interest at the rate of 7.75% per annum.
Interest on non-cumulative Bonds will be payable at half-yearly intervals from the date of issue in terms of paragraph 7 above and interest on cumulative Bonds will be compounded with half-yearly rests and will be payable on maturity along with the principal.
In the latter case, the maturity value of the Bonds shall be Rs. 1,703.00 (being principal and interest) for every Rs. 1,000/-(Nominal).
Interest to the holders opting for non-cumulative Bonds will be paid from date of issue in terms of paragraph 7 above up to 31st July / 31st January as the case may be, and thereafter half-yearly for period ending 31st July and 31st January on 1st August and 1st February.
Interest on Bonds held to the credit of Bonds Ledger Account of an investor will be paid, electronically by credit to bank account of the holder as per the option exercised by the investor/ holder.

Tax Deduction at Source

Tax will be deducted at source while making payment of interest on the Non-Cumulative Bonds from time to time and credited to Government Account.

Tax will be deducted at source while making payment of interest on the Non-Cumulative Bonds from time to time and credited to Government Account.
Tax on the interest portion of the maturity value will be deducted at source at the time of payment of the maturity proceeds on the Cumulative Bonds and credited to Government Account.
Provided that tax will not be deducted while making payment of interest/ maturity proceeds, as the case may be, to individual/s who have made a declaration in the application form that they have obtained exemption from tax under the relevant provisions of the Income Tax Act, 1961 and have submitted a true copy of the certificate obtained from Income Tax Authorities

Repayment

The Bonds shall be repayable on the expiration of 7 years from the date of issue.

The Bonds shall be repayable on the expiration of 7 years from the date of issue.
Premature encashment in respect of the Bonds shall be allowed for individual investors in the age group of 60 years and above, subject to submission of document relating to date of birth of the investor in support of age to the satisfaction of the issuing bank, after minimum lock in period from the date of issue as indicated below:a. Lock in period for investors in the age bracket of 60 to 70 years shall be 6 years from the date of issue.
b. Lock in period for investors in the age bracket of 70 to 80 years shall be 5 years from the date of issue.
c. Lock in period for investors in the age of 80 years and above shall be 4 years from the date of issue.
In case of joint holders or more than two holders of the Bond, the above lock in period will be applicable even if any one of the holders fulfills the above conditions of eligibility.
After aforesaid minimum lock in period from the date of issue an eligible investor can surrender the bonds at any time after the 12th, 10th and 8th half year corresponding to the respective lock in period but redemption payment will be made on the following interest payment due date. Thus, the effective date of premature encashment for eligible investors will be 1st August and 1st February every year. However, 50% of interest due and payable for the last six months of the holding period will be recovered in such cases, both in respect of Cumulative and Non-cumulative bonds.

REC Capital Gains Bonds

Rural Electrification Corporation Limited (REC) is a Navratna Company functioning under the purview of the Ministry of Power.
It’s a public Infrastructure Finance Company in India’s power sector.
The company finances and promotes rural electrification projects across India.
The company provides loans to Central/ State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers.
The company is listed on both National Stock Exchange and Bombay Stock Exchange.
Business operations in India are supported by a network of 13 Project Offices and 5 Zonal Offices, headquartered in New Delhi.

Company Name	Rating	ROI (%)	Tenure	Minimum Application	Maximum Application	Tax Status	Transferability	Mode of Interest	Interest Payable on
REC	AAA	5.75%	5 years	20000 (2 bonds)	5000000 (500 Bonds)	Taxable	Not Allowed	Annually	30th June

Click Here to Download Forms

NHAI Capital Gain Bonds Series XII

National Highways Authority of India (NHAI) is an autonomous agency of the Government of India, responsible for management of a network of over 50,000 km of National Highways out of 1,15,000 km in India.
It is a nodal agency of the Ministry of Road Transport and Highways.
NHAI has signed a memorandum of understanding (MoU) with the Indian Space Research Organization for satellite mapping of highways.
The Authority was operationalized in February, 1995 .
The company is listed on both National Stock Exchange and Bombay Stock Exchange

National Highway Authorty of India Bonds

Company Name	Rating	ROI (%)	Tenure	Minimum Application	Maximum Application	Tax Status	Transferability	Mode of Interest	Interest Payable on
NHAI	AAA	5.75%	5 years	10000 (1 bond)	5000000 (500 Bonds)	Taxable	Not Allowed	Annually	1st April

Click Here to Download Forms

PFC Capital Gain Bonds Series I

The Power Finance Corporation Ltd. Incorporated on July 16th, 1986, Company was conferred the title of a ‘Navratna CPSE’ in June, 2007 and it’s a leading Non-Banking Financial Corporation in the Country.
It is the financial back bone of Indian Power Sector.
PFC’s registered office is located at New Delhi and regional offices are located at Mumbai and Chennai.
It’s a consistently profit-making and dividend-paying company & also Strong asset quality reflected in low NPAs in the company.The company is listed on both National Stock Exchange and Bombay Stock Exchange

Power Finance Corporation Capital Gain Bonds Series I

Company Name	Rating	ROI (%)	Tenure	Minimum Application	Maximum Application	Tax Status	Transferability	Mode of Interest	Interest Payable on
PFC	AAA	5.75%	5 years	20000 (2 bonds)	5000000 (500 Bonds)	Taxable	Not Allowed	Annually	31st July

Click here to Download Forms

IRFC Capital Gain Bonds Series I

IRFC is a Schedule ‘A’ Public Sector Enterprise under the administrative control of the Ministry of Railways, Govt.
In more than 30 years of existence, IRFC has played a significant role in supporting the expansion of the Indian Railways and related entities by financing a significant proportion of its annual plan outlay.
Company raises money through financial bonds and from banks and financial institutions.

Indian Railway Finance Corporation Capital Gain Bonds Series I

Company Name	Rating	ROI (%)	Tenure	Minimum Application	Maximum Application	Tax Status	Transferability	Mode of Interest	Interest Payable on
IRFC	AAA	5.75%	5 years	20000 (2 bonds)	5000000 (500 Bonds)	Taxable	Not Allowed	Annually	15th October

Indian Railway Finance Corporation (IRFC) was set up on 12th December, 1986 as the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets.

Click here to download forms