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Friday, January 13, 2012

Indian Railway Finance Corporation Limited proposes tax free bonds

Indian Railway Finance Corporation Limited (IRFC) has proposed to issue Tax Free Bonds to raise money from the market to finance the outlay of Indian Railways.

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) of IT Act. Moreover, 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

IRFC is the financing arm of the Indian Railways and a Public Financial Institution under Section 4A of the Companies Act, 1956, which is fully held by Government of India

Click here for complete details on IRFC Tax Free Bonds
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