Income tax exemption - Interest on bonds/debentures - Notified bonds or debentures of public sector companies

By Vijay Kumar

BY Notification No. 07/2010 [F.No.178/126/2009-ITA.I], dated 3-2-2010, the government had authorised the Indian Railway Finance Corporation(IRFC) to issue, during Financial Year 2009-10, tax free secured, redeemable, non-convertible Railway Bonds of Rs. 1,000 each in case of public issue and Rs. 1,00,000 each in other cases, aggregating to an amount of five thousand crore rupees only, carrying an interest rate in the range of 6.50% to 7.25% per annum, depending upon the size and tenor of a tranche, under item (h) of sub-clause (iv) of clause (15) of section 10 of the Income-tax Act, 1961.

Now the lower interest rate of 6.50% is changed to 6%.

CORRIGENDUM Notification No. 16/2010 -INCOME TAX Dated: March 22, 2010