I would like to know whether NRIs are eligible to subscribe to the Bonds and entitled to the tax rebate. If so, whether an NRI or a prospective NRI could issue a cheque on his Resident Account with his Bank in India towards the purchase of the Bonds. It will also be useful if you also say whether there are any conditions specially applicable to the above class of investors. Thanks.
In the article it is not clear, if the invested amount (face value) received after three years will attract a tax at the rate prevailing that time or entire amount rceived back is taxfree. This will decide whether you are really saving tax or you are differing the liability by three yaers.
