HomeLifestyleInvestment Alert! If you want to invest money in government green...

Investment Alert! If you want to invest money in government green bonds first, then know how much tax exemption you will get?

Highlights

Between October and March, a green bond of about 16 thousand crores can come.
The coupon rate of this bond can be kept lower than that of government securities.
At present, 7.46 percent interest is being given on securities with 10-year yield.

New Delhi. The Modi government is preparing to issue its first green bond and investors were also excited about it. He felt that the government would also give many discounts to attract investors towards this bond. Finance Minister Nirmala Sitharaman had mentioned green bonds for the first time in this year’s budget. Since then the experts seemed quite excited about it.

Now a high official associated with the matter says that the government is also excited about this bond, but there is no preparation to give any special exemption on it. On the question of giving tax exemption on his first Sovereign Green Bond, he said that at present there is no talk of giving any separate tax relief. This news disappointed investors and experts who had been waiting for relaxation and relief since its discussion started in February.

Also read – Investment Tips: Include only these 3 options in the portfolio, your bag will be filled with bumper returns

When will the bond come and what will be the benefit

The Modi government is planning to issue green bonds worth about Rs 16,000 crore between October and March. It is so clear that no tax exemption will be given on this bond, but to make it attractive, the government can keep the coupon rate low. The official said that the coupon rate of this bond can be kept lower than that of government securities. At present, 7.46 percent interest is being given on securities with 10-year yield.

The intention of the government is to woo foreign investors through this bond. Right now there are many foreign and domestic investors who set aside their funds to invest in bonds and especially in green securities. The government has completed the work in collaboration with the World Bank and the Danish firm CICERO Shades of Green for the new changes. Investors are also looking excited about this bond. The Reserve Bank will soon determine the date and time of its release.

What is Green Sovereign Bond

Finance Minister Nirmala Sitharaman had taken its name for the first time in the budget presented on February 1, 2022 and said that the government would issue this bond with the intention of raising funds for the green project. Bond means borrowing from the market and through this bond also the government will take money from investors and invest it in green projects. On this, investors can be given higher interest than government securities.

Tags: business news in hindi, Government bond yields, Investment and return, Modi government, Nirmala Sitaraman

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments