Debentures-Basic Meaning

What is Debenture?

A debenture is a document which either creates a debt or acknowledges it

It is a debt security issued by a company (called the Issuer), which offers to pay interest in lieu of the money borrowed for a certain period. In essence it represents a loan taken by the issuer who pays an agreed rate of interest during the lifetime of the instrument and repays the principal normally, unless otherwise agreed, on maturity.

Debentures enable investors to reap the dual benefits of adequate security and good returns
Debentures holders have no right to vote at the meetings of the companies.

Convertible Debentures:
If an option is given to convert debentures into equity shares at the stated rate of exchange after a specified period, they are called convertible debentures. Convertible Debentures have become very popular in India. On conversion the holders cease to be lenders and become owners.

SEBI ordered to refund money to investors

Securities and Exchange Board of India ordered two Sahara Entities (Sahara Commodity Services Corp) and (Sahara Housing Investment Corporation) to refund the money collected from investors through Optionally Fully Convertible Debentures(OFCD) as they violated SEBI Norms.
1. The two Companies have failed to appoint a monitoring agency (a public financial institution or a scheduled commercial bank) when their issue size exceeded Rs. 500 crore, for the purposes of monitoring the use of proceeds of the issue.
2. The two companies have failed to apply for and obtain listing permission from recognised stock exchanges.
The regulator has also denied the two entities from accessing the securities market till the money is refunded. 

No Income Tax Return for income below 5 Lakh from FY 2010-11

The benefit of non filing of return will be available only to the tax payers whose whole income has been come under TDS (Tax Deducted at Source) and the whole tax should be deducted at source for the year.

So this is applicable only for salaried tax payers, whose tax will be deducted at source. But if this salaried tax payer has any other income including bank interest, he or she should declare it to the employer and allowed him to deduct the tax accordingly. Then only, the taxpayer gets the benefit of non filing of income tax return. The Form No. 16 (TDS Certificate) will be considered as Income Tax return in such cases.