• I am holding DDBs. What steps am I required to take to get redemption proceeds?

  You are required to furnish documents such as (1) application for redemption and (2) duly discharged bond certificate as also Form 15 H (in duplicate) and other attested certificates where ever applicable to either the registrars or any of the offices of IDBI or IDBI Bank Ltd. by post or by hand delivery by December 31, 2001.

• How do I receive the payment ?

  The payment (redemption proceeds ) would be made by means of a warrant drawn in favour of the first holder. Warrants would be sent by post.

The RAFs have been printed for the benefit of investors. These pre-printed forms are sent to all the investors along with the Call Option notice. RAFs contain most of the information that needs to be furnished by the investor. Thus, it is advisable to use the RAFs instead of applying on a plain paper. In case the RAF received by you is torn/ mutilated, you can collect the RAFs from any of the offices of IDBI/ IDBI Bank Ltd or the Registrars. RAFs can be downloaded from IDBI web site also.

I am holding a number of DDBs. How many applications should I send?

As the applications are processed Folio wise, a separate application/ set of documents needs to be furnished for each folio. Thus, as long as the folio No is the same send only one application (even if there are a number of certificates under the same folio).

Affix Re 1/- revenue stamp on the back side of the bond certificate at any convenient place. First holder to sign across the revenue stamp and second and third holders, if any, to sign just below that (they need not sign on revenue stamp). In case the first holder is a minor then the guardian should sign on minor's behalf. Similarly in case your signature has changed over a period of time kindly get the same attested.

Guardian would send the application/ discharge the DDBs on behalf of the minor. He will be required to sign again if he happens to be second / third holder.

The redemption warrant would be issued in the name of the first holder. Hence it is necessary to open a bank account in the name of the minor first holder. These bank details to be furnished in your application for redemption.

In such cases the redemption proceeds would be taxable if the income of the guardian is taxable.

At the time of purchase of DDBs I was a minor. Now I have become a major. How do I go about it ?

Enclose a duly attested xerox copy of your birth certificate confirming that you have become a major. The bond certificate would also be discharged by you as a major. As your signature is not on our records you will have to get it attested by authorised officials.

Procedure would be same as above. Attach attested xerox copy of marriage certificate. Your signature, if changed, would need attestation too.

You have to attach attested copy of death certificate of the first holder. You would be discharging the bond certificates. Other procedure would be same.

In such cases the nominee would be eligible to receive the redemption proceeds. However, if nominee has not been indicated then the executors or administrators of the deceased sole holder of the bond (whether Hindu, Mohammedan, Parsi or otherwise) or the holder of the succession certificate issued under Part X of the Indian Succession Act, 1925 (39 of 1925) in respect of the bond shall be the only person (s) who may be recognised by IDBI as having title to the bond. Notwithstanding anything contained in Section 45 of the Indian Contract Act 1872 (9 of 1872), in case of a bond issued, sold or held payable to two or more holders, the survivor(s) and on the death of last survivor, his executors, administrators or any person who is the holder of the succession certificate in respect of such bond shall be the only person who may be recognised to have a title to the bond.

Yes. The interest earned on these bonds is taxable. Redemption amount would be paid to all the     bondholders after necessary tax adjustment/ payment/ deduction as applicable under Income Tax act 1961. As regards tax treatment the Central Board of Direct Taxes has, vide letters dated 12.3.1996 and 26.3.1998, clarified that " the difference between the issue price and the redemption price of Deep Discount Bonds will be treated as interest income, assessable under Income Tax Act, 1961. On transfer of bonds before maturity, the difference between sales consideration and the issue price will be treated as capital gain/loss if the assessee purchased them by way of investment. However, in case of an assessee who deals in purchase and sale of bonds, securities etc., the profit and loss shall be treated as trading profit or loss." TDS would be deducted on the interest component of Rs 9,300/- per bond (i.e. Rs 12,000/- less Rs 2,700/-) presently at 10.2% for individuals/ HUF and at 20.4% in case of Corporates.

These forms can be collected from IDBI. Quote folio no in the space provided in the Form. Complete other details such as name, address, Table III (tables I and II are not applicable), occupation etc. You are required to sign at two places marked in the form.

Yes! TDS certificate in Form 16A will be printed on the back side of the counterfoil attached to the redemption warrant posted to you. The counterfoil would also provide details such as principal amount, interest, Tax deducted etc.

Certificates/signatures shall be attested under their seal/ stamp either by Judicial Magistrate or SEM or Notary public or Gazetted Officer or officer of IDBI or officer from any Public Sector Bank, Scheduled Commercial Bank, Scheduled Co-operative Bank or Officer from IDBI Bank Ltd.

Procedure to be followed is the same as in normal case. But NRI investors will have to indicate clearly in the application their NRI status. Further, RBI has granted permission for these bonds only on non-repatriable basis. Investors will have to furnish a mandate for crediting the proceeds of the bonds to their NRO bank account held in India (give full details of branch, address etc). Alternatively, the warrant would be dispatched to their address in India. NRIs to furnish residential address (with PIN Code) in India. e mail address/ tel no would be useful for faster communication.