Viewed as a pure tax rebate device, the premium on a policy of Rs. Beneficial for Investors in high tax bracket. The minimum investment amount is Rs. 1,000. Futher investment can be made in the multiples of Rs. 1,000. Date of issue of bond is the date of realisation of cheque.
Interest is payable either half-yearly or cumulatively at maturity.
Bonds can be issued either in form of stock certificates or promisory notes. Interest on Bonds is exempt from Wealth Tax also.