InvestorQ : What is an Elephant bond & how it will help to bring black money?
Khushi Patel made post

What is an Elephant bond & how it will help to bring black money?

Answer
user profile image
Roshni Hegde answered.
10 months ago


Elephant bond is mostly preferred by individuals who look to bring their undisclosed wealth generated outside India in a legal manner. This bond benefits the subscriber with a fixed coupon security if they invest 40% of the total undisclosed wealth. This 40% of their investment is invested in long term bonds. However, individuals have to pay 15% tax on their unaccounted wealth if they invest in elephant bonds. This scheme is open any individual willing to disclose and invest their wealth generated outside India.

Thus, Elephant bond is popular instrument to bring people's money in India without any fear of legal consequences against them. However, according to the recent amendment by a committee on trade and industry appointed by the high-level government, the total investment percentage is raised by 10% to 50%and reduce the corporate tax rate.

Elephant Bonds is designed uniquely that helps the government to get enough amount in the country in the form of tax and investment in bonds that are utilized for infrastructure development in India. Market expert estimates to solve major problems such as infrastructure finance problem, bring real interest rate to lowdown, strengthen the rupee through $300 billion funds generated by Elephant bonds.