The Hindu : Business / Briefly : 6.5 p.c. tax-free bonds withdrawn

Online edition of India's National Newspaper
Saturday, Jul 10, 2004

Business

Business - Briefly

6.5 p.c. tax-free bonds withdrawn

NEW DELHI, JULY 9. In a measure likely to adversely impact the middle class, the Government has withdrawn the 6.5 per cent tax-free Savings Bond scheme and two deposit schemes for retiring employees. The decision comes a day after the 2004-05 Budget presentation by the Finance Minister, P. Chidambaram, where he announced the launch of a new savings scheme for senior citizens, which will fetch 9 per cent interest.

An official note issued today said that the issue of 6.5 per cent (non taxable) bonds 2003 and acceptance of fresh deposits under the deposit scheme for retiring Government employees, 1989, and the deposit scheme for retiring employees of public sector companies, 1991, would cease with effect from the close of business on July 9. However, the 8 per cent savings (taxable) bonds, 2003, scheme would continue. — Our Special Correspondent

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