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Invest and Save Taxes By ICICI Tax Saving Bonds

Amongst the galaxy of private banks in the Indian Economy, ICICI Bank is a front running multinational bank that also provides several financial service. The headquarters of the company are in Mumbai. According to certain estimates, ICICI Bank is the second biggest bank in the country in terms of market capitalization and assets. The bank offers a huge spectrum of banking and financial services. These services are offered to retail as well as corporate customers with the help of a bouquet of the channels of delivery along with the specialized subsidiary in the sectors pertaining to investment banking, non life insurance and life insurance, asset management etc. The total reach of the world class bank is 3,539 branches and a huge number of ATMS which sum up to a total of 11,162 ATM's in the country. The bank is also spread across 19 countries.

The bank also offers several saving options to its customers. These not only allow the investors to safely keep their money but also help them to save taxes. The investors have the luxury of a certain tax exemption under the Section 88 of the Income Tax Act of 1961. The ICICI Tax savings bond offers the best option. As according to the income tax law of this country, all the proceeds of these bonds are used in the development of the infrastructure.

CBDT or Central Board of Direct Taxes under the revenue department of the Ministry of Finance in a letter titled F.NO.178/57/2000-IT (AI) as issued on the 17th August in 2000 announced the Tax Saving Bond as “eligible security for the purpose of clause (xvi) of sub-section (2) of Section 88 of the Income-tax Act, 1961”. Rebate on the taxes as under the Section 88 may be used by NRIs as well. This is possible only if those NRIs do not opt to get assessed by the “Special Provision(s) of Chapter XII-A of the Income-tax Act, 1961”.

Option 1

  • Issue Price: Rs.5000
  • Face Value: Rs 5000
  • Tenure: 3 Years
  • Interest: 10.5 % Per annum

Option 2

  • Issue Price: Rs.5000
  • Face value : Rs.5000
  • Tenure : 3 years 4 months
  • Interest: DDB @ (YTM 10.6%)

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