Tax free bonds by India Infrastructure Finance Company Limited – Notified under Section 10 of IT Act

By Vijay Kumar

As per Section 10 of the Income Tax Act, in computing the total income of a previous year of any person, any income falling within any of the clauses under that section shall not be included;

As per item (h) of sub-clause (iv) of clause (15) of section 10, interest payable by

by any public sector company in respect of such bonds or debentures and subject to such conditions, including the condition that the holder of such bonds or debentures registers his name and the holding with that company, as the Central Government may, by notification in the Official Gazette, specify in this behalf;

is also not included in the income.

Now the Government has notified the issue of tax free bonds by India Infrastructure Finance Company Limited, carrying an interest rate of up to maximum 8 per cent annum, aggregating to an amount of ten thousand Crore rupees only, to be issued by India Infrastructure Finance Company Limited, New Delhi during the financial year 2008-09, for the purpose under the section.

CBDT Notification NO. 9/2009 : Dated January 7, 2009