FD & Bonds
Fixed Deposits are one of the oldest and most common methods of investing. When it comes to assured returns, choosing the right type of savings scheme makes all the difference. Fixed Deposits let you make the most of value-added benefits as you create wealth at low risk.
Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits.
of Companies offering Fixed Deposits
54 EC BONDSCapital Gain be saved Under Sec 54EC or Sec 54F, if the land or property sold is non agriculture. We deal in such bonds which qualify for Sec 54EC Bonds.
can be saved under Section 54 EC by investing in bonds
1. Long Term Capital Asset Long term assets means any capital asset held by assessee for more than 3 Years.
2. If assesee has sold the Long term capital asset during
the previous year and made a long term capital gain then he can
invest money of capital gain in Capital gain bonds and can save
tax on long term capital gain.
7. Capital gain bonds eligible under this section are now
can be issued only by REC or NABARD
DEBENTUREA type of debt instrument that is not -secured by physical asset or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuer. Both corporations and governments frequently issue this type of bond in order to secure capital. Like other types of bonds, debentures are documented in an indenture.
Debentures have no collateral. Bond buyers generally purchase debentures based on the belief that the bond issuer is unlikely to default on the repayment. An example of a government debenture would be any government-issued Treasury bond (T-bond) or Treasury bill (T-bill). T-bonds and T-bills are generally considered risk free because governments, at worst, can print off more money or raise taxes to pay these type of debts
A debenture is a document that either creates a debt or acknowledges it, and it is a debt without collateral. In corporate finance, the term is used for a medium- to long-term debt instrument used by large companies to borrow money. In some countries the term is used interchangeably with bond, loan stock or note.
A debenture is thus like a certificate of loan or a loan bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company's capital structure, it does not become share capital. Senior debentures get paid before subordinate debentures, and there are varying rates of risk and payoff for these categories.
There are two types of debentures: