PTC India Financial Services Ltd. (PFS) has launched infrastructure bonds in the name as PFS Long Term Infrastructure Bond – Series 2, under section 80CCF of face value of Rs. 5000/- each to remain open till February 29, 2012 for subscription. The company has set up as a special purpose investment vehicle for providing total financing solutions to the energy value chain which inter-alia includes investing in equity and/or extending debt to power projects, which are working in generation, transmission, distribution, equipment manufacturers, fuel sources and EPC contractors and carbon credit finance.
TAX BENEFITS UNDER THE INCOME TAX ACT, 1961
Under the current tax laws (existing as well as proposed) the following tax benefits, inter alia, will be available to the Bond Holder as mentioned below. The benefits are given as per the prevailing tax laws and may vary from time to time in accordance with amendments to the law or enactments thereto. The Bond Holder is advised to consider in his own case the tax implications in respect of subscription to the Bond after consulting his tax advisor as alternate views are possible. PFS or the Trustees shall not be liable to the Bond Holder in any manner for placing reliance upon the contents of this statement of tax benefits.
A. INCOME TAX:
Tax Benefits to the Resident Bond Holders
According to section 80CCF an amount not exceeding rupees twenty thousand invested in long term infrastructure Bonds shall be allowed to be deducted from the total income of an Individual or Hindu Undivided Family. This deduction shall be available over and above the aggregate limit of ~ One Lakh as provided under sections 80C, 80CCC and 80CCD read with section 80CCE.
Section 80CCF reads as “In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, the whole of the amount, to the extent such amount does not exceed twenty thousand rupees, paid or deposited, during the previous year relevant to the assessment year beginning on the 1st day of April, 2011, as subscription to longterm infrastructure Bonds as may, for the purposes of this section, be notified by the Central Government”
Taxability of Interest
Taxability of interest on Bonds would depend upon the method of accounting adopted by the resident Bondholder as mentioned in the provisions of the IT Act.
Withholding Tax
No income tax is deductible at source on interest on Bonds as per the provisions of section 193 of the I.T. Act in respect of the following:
a) In case the payment of interest on Bonds to resident individual Bond Holder by company by an account payee cheque and such Bonds being listed on a recognized stock exchange in India, provided the amount of interest or the aggregate of the amounts of such interest paid or likely to be paid during the financial year does not exceed ~2,500;
b) When the Assessing Officer issues a certificate on an application by a Bond Holder on satisfaction that the total income of the Bond Holder justifies nil/lower deduction of tax at source as per the provisions of Section 197(1) of the I.T. Act;
c) When the resident Bond Holder (not being a company or a firm or a senior citizen) submits a declaration to the payer in the prescribed Form 15G verified in the prescribed manner to the effect that the tax on his estimated total income of the financial year in which such income is to be included in computing his total income will be ‘nil’ as per the provisions of Section 197A (1A) of the I.T Act. Under Section 197A (1B) of the I.T Act, Form 15G cannot be submitted nor considered for exemption from deduction of tax at source if the aggregate of income of the nature referred to in the said section, viz. dividend, interest, etc as prescribed therein, credited or paid or likely to be credited or paid during the financial year in which such income is to be included exceeds the maximum amount which is not chargeable to tax. To illustrate, the maximum amount of income not chargeable to tax in case of individuals (other than women assesses and senior citizens) and HUFs is ~1,80,000/-, in case of women assesses is ~190,000/- , in case of senior citizen is ~2,50,000/- and in case of super senior citizens is ~5,00,000/- for financial year 2011-12. Senior citizens, who are 60 or more years of age at any time during the financial year, enjoy the special privilege to submit a self declaration to the payer in the prescribed Form 15H for non-deduction of tax at source in accordance with the provisions of section 197A (1C) of the I.T. Act even if the aggregate income credited or paid or likely to be credited or paid exceed the maximum amount not chargeable to tax i.e. ~2,50,000/- in case of senior citizens and ~5,00,000/- in case of super senior citizens for FY 2011-12, provided tax on his estimated total income of the financial year in which such income is to be included in computing his total income will be nil.
d) On any securities issued by a company in a dematerialized form listed on recognized stock exchange in India. (w.e.f. 1.06.2008).
In all other situations, tax would be deducted at source as per prevailing provisions of the I.T. Act;
Transfer before maturity: Under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed Bond is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.
Under section 112 of the I.T. Act, capital gains arising on the transfer of long term capital assets being listed securities are subject to tax at the rate of 10% of capital gains calculated without indexation of the cost of acquisition. The capital gains will be computed by deducting expenditure incurred in connection with such transfer and cost of acquisition of the Bonds from the sale consideration.
In case of an individual or HUF, being a resident, where the total income as reduced by the long term capital gains is below the maximum amount not chargeable to tax, which for the FY 2011-12 is Rs. 1,80,000 in case of all individuals, Rs. 1,90,000/- in case of women, Rs. 2,50,000/- in case of senior citizens and Rs. 5,00,000/- in case of super senior citizens, the long term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such long-term capital gains shall be computed at the rate of ten per cent in accordance with and the proviso to sub-section (1) of section 112 of the I.T. Act read with CBDT Circular 721 dated September 13, 1995.
A 2% education cess and 1% secondary and higher education cess on the total income tax (including surcharge) is payable by all categories of tax payers as per the current tax laws.
Short-term capital gains on the transfer of listed Bonds, where Bonds are held for a period of not more than 12 months, would be taxed at the normal rates of tax in accordance with and subject to the provision of the I.T. Act. The provisions related to minimum amount not chargeable to tax, surcharge and education cess as described above would also apply to such short-term capital gains.
In case the Bonds are held as stock in trade, the income on transfer of Bonds would be taxed as business income or loss in accordance with and subject to the provisions of the IT Act.
B. WEALTH TAX Wealth-tax is not levied on investment in Bonds under section 2(ea) of the Wealth-tax Act, 1957.
C. GIFT TAX
Gift-tax is not levied on gift of Bonds in the hands of the donor as well as the donee as the provisions of the Gift-tax Act, 1958 have ceased to apply in respect of gifts made on or after 1st October, 1998.
SUMMARY TERMS AND CONDITIONS
|
Issuer |
PTC India Financial Services Ltd. (PFS) (the Issuer) |
|
Issue Type |
Private Placement Basis |
|
Offering |
1,00,000 Secured, Redeemable, Non-Convertible Long Term Infrastructure Bonds of Series 2 of Rs. 5,000/- each aggregating to Rs. 50 Crore (Rupee Fifty Crore only) with a green-shoe option to retain *over-subscription for issuance of additional Infrastructure Bonds Series 2. The Bonds shall be issued at par on the terms contained in the relevant tranche prospectus to be issued in respect of each tranche. |
|
*(which does not exceed 25% of the incremental infrastructure investment made by the Company in Fiscal 2011). |
|
|
Issue Open Date |
30 December, 2011 |
|
Issue Close Date |
29 February, 2012 |
|
Deemed Date of Allotment |
16 March, 2012 |
|
Instrument |
Secured, Redeemable, Non-Convertible Long Term Infrastructure Bonds Series 2 with benefits under section 80CCF of the Income Tax, 1961 |
|
Rating |
BWR AA (Stable outlook) by Brickwork Ratings India Pvt Ltd, CARE A+ by Credit Analysis & Research Ltd & ICRA A+ (Stable outlook) by ICRA Limited |
|
Eligible Investors |
Resident Indian Individual (Major) and HUF through Karta of the HUF |
|
Issue Price |
Rs.5,000/- per Bond |
|
Face Value |
Rs.5,000/- each |
|
Minimum Size |
1 Bond, further in multiples of 1 |
|
Listing |
Proposed on the Wholesale Debt Market (WDM) Segment of National Stock Exchange of India Limited (NSE) |
|
Trading |
Demat mode only following expiry of Lock-in Period of 5 years |
|
Issuance |
Demat and Physical form |
|
Registrar |
Karvy Computershare Private Limited |
|
Cheque in Favour of |
PFS Infra Bond Account |
Available Options:
|
Options |
I |
II |
III |
IV |
|
Frequency of Interest Payment |
Annual |
Cumulative Option |
Annual |
Cumulative Option |
|
Face Value (`) |
5,000/- |
5,000/- |
5,000/- |
5,000/- |
|
Minimum Application |
1 Bond |
1 Bond |
1 Bond |
1 Bond |
|
In Multiples of |
5,000/- |
5,000/- |
5,000/ |
5,000/- |
|
Issue Price (per Bond) |
At par |
At par |
At par |
At par |
|
Terms of Payment |
Full amount with application |
Full amount with application |
Full amount with application |
Full amount with application |
|
Tenor |
10 (Ten) years |
10 (Ten) years |
15 (Fifteen) years |
15 (Fifteen) years |
|
Coupon (% p.a.) |
8.93% p.a. (Payable annually) |
8.93% p.a. (Annual compounding) |
||
|
9.15% p.a. (Payable annually) |
9.15% p.a. (Annual compounding) |
|||
|
Coupon Payment Date |
March 15, every year |
At the time of maturity |
March 15, every year |
At the time of maturity |
|
Maturity Date |
15-Mar-22 |
15-Mar-22 |
15-Mar-27 |
15-Mar-27 |
|
Buyback Option |
Every year after the end of 5 years and one day |
Every year after the end of 5 years and one day |
Every year after the end of 7 years and one day |
Every year after the end of 7 years and one day |
|
Buyback Dates |
March 16 of 2017 to 2021 |
March 16 of 2017 to 2021 |
March 16 of 2019 to 2026 |
March 16 of 2019 to 2026 |
|
Buyback Intimation Period |
1 Jan to 31 Jan of year 2017 to year 2021 |
1 Jan to 31 Jan of year 2017 to year 2021 |
1 Jan to 31 Jan of year 2019 to year 2026 |
1 Jan to 31 Jan of year 2019 to year 2026 |
|
Redemption amount (per Bond) |
5,000 |
11,977 |
5,000 |
18,592 |
|
Redemption amount in case buy back option is exercised: (in Rs.) |
||||
|
At the end of Year 5 |
5,000 |
7,731 |
NA |
NA |
|
Year 6 |
5,000 |
8,438 |
NA |
NA |
|
Year 7 |
5,000 |
9,210 |
5,000 |
9,229 |
|
Year 8 |
5,000 |
10,053 |
5,000 |
10,073 |
|
Year 9 |
5,000 |
10,973 |
5,000 |
10,995 |
|
Year 10 |
5,000 |
11,977 |
5,000 |
12,001 |
|
Year 11 |
NA |
NA |
5,000 |
13,099 |
|
Year 12 |
NA |
NA |
5,000 |
14,297 |
|
Year 13 |
NA |
NA |
5,000 |
15,605 |
|
Year 14 |
NA |
NA |
5,000 |
17,033 |
|
Year 15 |
NA |
NA |
5,000 |
18,592 |
|
Lock-in period |
5 years from the deemed date of allotment |
|||
|
Interest on Application Money shall be paid at the respective coupon from the date of realization of subscription amount to the date immediately preceding the deemed date of allotment along with first annual interest payment in Option I & III and at the time of redemption in Option II & IV |
||||
I am holding four bonds with maturity date on 30 Mar 22. Did not receive bond certificate. After submission of affidavit and kyc received duplicate bond certificates Physical form in dec 2020. As per T&C at the back of the certificate, the certificate duly signed on the reverse to be sent to the registrar address for credit to your bank account.
Hi, I have invested in PFS long term infrastructure bond to get benefit under the section in this FY 2011-12. Now the problem is that i have not received the bond certificate to produce to take the required benefit. However I have the payment acknowledgment slip. Can you please suggest / help in this regard. Thanks, mob 9334415234
I have purchased 04 PTC taax saver bond under option II on March 30,2012 and maturity date March 30,2022. Now I need maturity payment.
Please intuct me what procedure I will follow for the payment.
Dear Dr Balyan
my self Vinod Kumar with Mobile 8826676014
is also having 4 bonds @ 5k each .it is same like you.
sir, kindly share updates with me also to redeem the bonds.
[email protected]
Thanks with regards
vinod kumar
I am holding 4 bonds PFS Long Term Infrastructure Bond – Series 2 option I. I am not recieving interest as per terms every year. What should I do as maturity is near next year. How to get redemption money and interest not received.
I am holding 4 bonds PFS Long Term Infrastructure Bond – Series 2 option I. I am not recieving interest as per terms every year. What should I do as maturity is near next year. How to get redemption money and interest not received.
I have applied for 4 bonds vide application no. 4716848 on dated 16.03.2012, but I have not received the bonds. Please advise how can I get the bonds or payment at the time of maturity.
I have applied for 4 PFC long term Infra bond series 2 wide Appl No. 859163 dated 13.03.2012 vide cheque no. 908453 dated 03.03.2012 of PNB, Station road, Arrah (Bhojpur), Bihar- 802301 branch for Rs. 20,000/-
I have not received the bond . I have not received redemption on completion of duration.
RAVINDRA KUMAR
C/O- Sheo Bachan Ram
P. No. 134, Vikas Colony,
AG Colony main road,
Patna- 800023
I have applied for 4 PFC Infra Bonds Trenche – 2011 wide Appl No. 800080 dated 04.01.2012 vide cheque no. 019198 dated 04.01.2012 of PNB, MI Road jaipur branch for Rs. 20,000/-
I have not received the bond . I have not received redemption on completion of duration.
Brijendra Singh
257, Devi Nagar,
New Sanganer Road, Jaipur-302019
I have not rec’d original bond.
I have not received bond.
Ptb0137134 folio
Isin ine
I have not received bond.
How to encash ptc infrastructure bond series 2 now.
Procedure please
I am having four bonds.I want to enquire the date of maturity and total amount to be received at the time of maturity.
I have applied for 4 PFC Infra Bonds Trenche – 2011 wide Appl No. 52413267 dated 03.12.2011 (Ref No. 705418). Disp. Date: 21.11.2011.
I have not received the bond . I have not received redemption on completion of duration.
Saurabh Sharma
Dear Sir I have purchased 4 bonds for 10 years @Rs.5000 each,pls tell me how many amount I will get with interest
I HAVE DEPOSITED RS 20000 IN FEBRUARY 2012 FOR INVESTMENT IN PFS INFRA BOND BUT I HAVE NOTHING RECEIVED FROM THE COMPANY. PLEASE PROVIDE ADDRESS AND OTHER DETAIL
I have purchased 4(0000006296 to 0000006299)no of pfs long term infrastructure bond series 2option IV please tell me the status of these bond how can I redeem the same 9414214471
I purchased PFS LONG TERM INFRASTRUCTURE BOND SERIES 2 ,option IV 160498 ISIN INE560K07110 REGISTERED FOLIO PTB0301599 Certificate 301599 No of bond are 4 0000006296 to 0000006299 i wants to sell these bond kindly tell me process 09414214471
Sir,
I have purchased 4(0000083481-0000083484) no. of PFS long term infrastructure bonds -series 2 ,option ii 134805 ,issue date 20.06.2012.pl let me know the present status of the bond and how can i redeem the same .
I have invested in PFS long term infrastructure to get benefit under 80ccf for F.Y. 2011 -12 . I have not received the bond certificate till date. Rs 20,000/- has been debited to my saving bank account -Standard Chartered Bank on 16th of March, 2012 . Please arrange to send me a duplicate certificate.Please guide me what i can do to get the bond certificate.
Thanking You,
Sanjay Chowdhury
Email: [email protected]
Mobile:9717040799
I have invested in PFS long term infrastructure to get benefit under 80ccf for F.Y. 2011 -12 . I have not received the bond certificate to till date. Rs 20,000/- has been debited to my saving bank account -Standard Chartered Bank on 16th of March, 2012 . Please arrange to send me a duplicate certificate.Please guide me what i can do to get the bond certificate.
Thanking You,
Sanjay Chowdhury
[email protected]
9717040799
I have. Bond of 20000 &I like to buy back my bond. PL. Guide. How to do?My folio no.PTB0301692. & I have purchase on 7/5/2012.
My name is Jaykumar H Shasane. I have deposited Rs.20000/_ in tax saving infrastructure bonds for March 2011.So far I have not received Bond certificate.Redemption period is over still I have not received maturity amount.My PAN no .is ANVPS1799Q.
Dear Sir,
have bought the PFC long term bond, till date I have not received the bod in physical form as well as the redemption of the bond is also due. kindly advise me the process . Also I want to change my address in the bond kindly advise.
Rgds,
SS Chauhan.
I have purcahes the PTC I Finance bond on 07/05/2012/
Reg Folio no PTB0112164
Certificate no -112164
ISIN INE 560K07094
Requested to suggest to buy back producer
I have invested in PTC taxsaving bond in 2012, Now I need to withdraw/redeem, Request your guidance to proceed for redemption
I have invested in PFS long term infrastructure bond series 2 to get benefit under 80ccf for F.Y. 2011 -12 on 29th feb. 2012. I have not received the bond certificate to till date, I have xerox copy of application form and xerox of cheque. .Please guide me what i can do for the same. Thanking You.
app. no.4640034,
chq no.242651
I have invested in PTC taxsaving bond in 2012, Now I need to withdraw/redeem, Request your guidance to proceed for redemption
Pl send the form for buy back
Please send the Buy Back form
plz send a infra bond buy back form
I have invested Rs. 20000 inPTC Infra Bonds in 2012. I have not received the bonds.
Please send duplicate bond application details. [email protected]
Sir, I have invested Rs 20000 in PFC infra Bonds for the financial year 2011-12. Four years have since elapsed I have not received the bond certificate. Please advise me the fate.I do have the acknowledgement slip. Thanks and regards, Adhar Kumar, PAN AFSPK 2881C
An early response will be appreciated.
I have invested in PFS long term infrastructure bond series 2 to get benefit under 80ccf for F.Y. 2011 -12 on 20th March 2012. I have not received the bond certificate to till date, I have acknowledgment slip of payment.Please guide me what i can do for the same. Thanking You.
regards
Mahesh Kumar
M:9414377865
Hi, I have invested in PFS long term infrastructure bond to get benefit under the section in this FY 2012 -13. Now the problem is that i have not received the bond certificate to produce to take the required benefit. However I have the payment acknowledgment slip. Can you please suggest / help in this regard. Thanks, Regards, Shailesh Ranjan mob 9810939759
For Infra Bonds processing, please call or contact or phone me at 9241545354 (for bangalore only).