The Bonds may be held by -
(i) an individual, not being a Non-Resident Indian (NRI)
(a) in his or her individual capacity, or
(b) in an individual capacity on joint basis, or
(c) in an individual capacity on anyone or survivor basis, or
(d) on behalf of a minor as father/mother/legal guardian
(ii) a Hindu Undivided Family.
(iii) (a)’Charitable Institution’ to mean a Company registered under Section 25 of the Indian Companies Act 1956 or
(b) an institution which has obtained a Certificate of Registration as a charitable institution in accordance with a law in force; or
(c) any institution which has obtained a certificate from Income Tax Authority for the purpose of Section 80G of the Income Tax Act, 1961.
(iv) “University” means a university established or incorporated by a Central, State or Provincial Act, and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be a university for the purposes of that Act.

Limit of Investment
There is no maximum limit for investment in the Bonds.

Tax Treatment
(i) Income-Tax: 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. (ii) Wealth Tax: The Bonds will be exempt from Wealth-tax under the Wealth- Tax Act, 1957.

Issue Price
(i) The Bonds will be issued at par i.e. at Rs.100.00 percent. (ii) 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).

Subscription
Subscription to the Bonds will be in the form of Cash/Drafts/Cheques. Cheques or drafts should be drawn in favour of the Receiving Office, specified in paragraph 10 below and payable at the place where the applications are tendered.

Date of Issue
(i) The Bonds will be issued with effect from 21st April 2003. (ii) The date of issue of the Bonds in the form of Bond Ledger Account will be the date of receipt of subscription in cash or the date of realisation of draft/cheque.

Form
(i) The Bonds will be issued and held at the credit of the holder in an account called Bond Ledger Account (BLA). (ii) New Bond Ledger series with the prefix (TB) are to be opened. All investment in 8% Savings (Taxable) Bonds by an existing BLA holder will be viewed as a new investment under a new BLA. (iii) The Bonds in the form of Bond Ledger Account will be issued by and held with designated branches of the agency banks and SHCIL as authorised by Reserve Bank of India in terms of paragraph 10 below.(iv) The Certificate of Holding in respect of Bond Ledger Account will be issued in Form TBX or Form TBY as applicable for non-cumulative and cumulative investments respectively. (v) The Certificate of Holding in respect of cash applications may be issued on the same day as per the extant instructions.

Applications
(i) Applications for the Bonds may be made in Form ‘A’ (Annex 2) or in any other form as near as thereto stating clearly the amount and the full name and address of the applicant. (ii) Applications should be accompanied by the necessary payment in the form of cash/drafts/cheques as indicated in paragraph 6 above. (iii) Applicants who have obtained exemption from tax under the relevant provisions of the Income Tax Act, 1961, shall make a declaration to that effect in the application (in Form ‘A’) and submit a true copy of the certificate obtained from Income-Tax Authorities.