Company Fixed Deposit (corporate FD) is a term deposit which is held over fixed period at fixed rates of interest. Company Fixed Deposits are offered by Financial and Non-Banking financial companies (NBFCs) & non-banking finance companies are governed by Companies Act 58A.The maturities of various company fixed deposits can range from a few months to a few years. Corporate fixed deposits fare better than Bank FDs as they offer a significantly higher interest rate.
54EC bonds, or capital gains bonds, are one of the best way to save long-term capital gain tax. A long-term capital gain is any revenue that you get from the sale of an asset. The asset could be land, property or even investments. According to the Income Tax Act, you are liable to pay tax for such gains. However you can reduce the liability of these taxes. Invest in section 54EC bonds, also commonly known as capital gain bonds, to avail tax deductions in the future. The bonds are issued as per the provisions of the section 54EC of the IT Act & bonds are AAA rated.
The Government of India launched the Floating Rate Savings Bonds, 2020 (Taxable) scheme on July 01, 2020 to enable Resident Indians/HUF to invest in a taxable bond, without any monetary ceiling. Interest is payable semi-annually from the date of issue of bonds, upto 30th June / 31st December as the case may be, and thereafter half-yearly for period ending 30th June and 31st December on 1st July and 1st January respectively.The coupon rate payable for next half-year would be reset on 1st January 2021 and thereafter, every 1st July and 1st January. The Bonds shall be repayable on the expiration of 7 (Seven) years from the date of issue. Premature redemption shall be allowed for specified categories of senior citizens. Income from the bonds is taxable & the bonds are not transferable..
Non-convertible debentures (NCD) are fixed-income instruments, usually Issued by Corporates for specified tenure to raise resources/funds through public issue or private placement.They offer relatively higher interest rates when compared to convertible debentures.Besides,NCDs offer various other benefits to the owner such as high liquidity through stock market listing, tax exemptions at source and safety since they can be issued by companies which have a good credit rating as specified in the norms laid down by RBI for the issue of NCDs. In India. NCD investment can be held by individuals, banking companies, primary dealers other corporate bodies registered or incorporated in India and unincorporated bodies.
The Government of India introduced the Sovereign Gold Bond (SGB) Scheme in November 2015, to offer investors an alternative to physical gold. It’s government securities issued by Reserve Bank of India on behalf of the Government of India.They are denominated in grams of gold and pay a fixed interest of 2.5% p.a to their investors Moreover,it is over and above the gold price return. The interest payments are made every six months. The tenure of these bonds is eight years .Investors can redeem these bonds for cash upon maturity of the bonds or can sell it on Exchange at current prices However, one can exit the scheme after a lock-in of 5 years. Also, one can always sell the bonds on the secondary market.