Income Tax : Discover what income is tax-free and save on your taxes. Learn about untaxed earnings before filing your ITR. Stay updated!...
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Income Tax : The Bangalore Metro Corporation (BMRC) will issue a tax free Metro Bond to raise Rs 2,000 crore for the first phase of the project...
Income Tax : The tax-free bonds of Indian Railway Finance Corporation (IRFC) received bids of over Rs 300 crore on the very first day after it ...
Income Tax : The government may soon allow infrastructure special purpose vehicles (SPVs) to raise long-term funds by issuing tax-free bonds to...
Income Tax : The long-standing demand of banks that they be allowed to issue tax-free bonds to fund long-term infrastructure projects may not b...
The Bangalore Metro Corporation (BMRC) will issue a tax free Metro Bond to raise Rs 2,000 crore for the first phase of the project. The bond, pending with the Union Finance Ministry at present for clearance, is expected to hit the market in a few days, the Union Urban Development Secretary Sudhir Krishna said on Friday.
Indian Railway Finance Corporation Ltd – Issue period: 27 January 2012 to 10 February 2012. Issue of Tax Free Secured Redeemable Non Convertible Bonds . Basis of allotment: On a first-come-first-serve basis within each category. The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under section 10 (15) (iv) (h) of IT Act, 1961.
Salient features of the proposed bond issue- 1. The Bonds are issued in the form of tax-free, secured, redeemable, non-convertible Debentures and the interest on the Bonds will not form part of the total income. 2. In case of over-subscription; allotment shall be on first cum first serve basis up to the date falling 1 day prior to the date of oversubscription and on proportionate basis on the date of oversubscription, in the manner specified in the Tranche Prospectus. 3. CARE has assigned a rating of ‘CARE AA+’ to the Bonds. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Fitch has assigned a rating of ‘Fitch AA+ (ind)’ to the Bonds.
TAX BENEFITS ON PROPOSED ISSUE OF TAX FREE BONDS BY INDIAN RAILWAY FINANCE CORPORATION LIMITED The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under section 10 (15) (iv) (h) of IT Act. There will be no deduction of tax at source from the interest, which accrues to the bondholders on these bonds irrespective of the amount of the interest or the status of the investors. Wealth Tax is not levied on investment in Bonds under section 2(ea) of the Wealth-tax Act, 1957.
Interest from Bond do not form part of Total Income – a) In exercise of power conferred by item (h) of sub clause (iv) of clause (15) of Section 10 of the Income Tax Act, 1961 the Central Government vide notification no 52/2011.F.No.178/56/201 1- (ITA-1) dated 23rd September 2011 authorizes our Company to issue during the Financial year 2011-12, tax free, secured, redeemable, non-convertible bonds of rupee 1,000 each in case of public issue for the aggregate amount of Rs. .5,000 crores subject to the other following conditions that –
The tax-free bonds of Indian Railway Finance Corporation (IRFC) received bids of over Rs 300 crore on the very first day after it opened for subscription on Monday, according to distributors of the bonds. IRFC plans to raise Rs 1,000 crore through
The government may soon allow infrastructure special purpose vehicles (SPVs) to raise long-term funds by issuing tax-free bonds to individual households. The scheme is an extension of a plan to allow private infrastructure firms to issue such securities, which was announced by finance minister Prana Mukherjee in March.
The long-standing demand of banks that they be allowed to issue tax-free bonds to fund long-term infrastructure projects may not be accepted by the government and included in the Budget. The government has not found any reason to accept the demand, especially at a time when the state of its finances has gone awry.
Relaxation in the norms relating to infrastructure lending and 70 per cent loan loss coverage ratio are likely to top the agenda when bankers meet Reserve Bank of India on January 14, ahead of the quarterly policy review. “Banks will press their demand to relax the norms on infrastructure lending. They may also ask for some easing in the guidelines announced for banks to augment their loan loss coverage ratio to 70 per cent,” Indian Banks’ Association chief executive, K Ramakrishnan told PTI in Mumbai.
Banks are making a strong pitch to the government for permission to issue tax-free bonds to fund infrastructure projects. Bankers, who are expected to again take up the issue with the finance ministry next week, are arguing that the bonds will help them raise long-term resources and reduce dependence on retail fixed deposits, whose maturity is getting shorter. In recent months, banks have been saddled with deposits in the one-year maturity bucket, while infrastructure loans have a tenure of 15-20 years.
