Section 10(15)(vii) of the Income-tax Act, 1961 - Exemptions - Interest on bonds issued by local authorities - Notified bonds
NOTIFICATION NO. 6/2008, DATED 14-1-2008
In exercise of the powers conferred by sub-clause (vii) of clause (15) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the bond with the following particulars for the purpose of the said sub-clause, namely :—
|
(a) |
Name of the bond |
— |
Tax-free Pooled Finance Development Bonds under Pooled Finance Development Fund Scheme of Government of India. |
|
(b) |
Issuing authority |
— |
Water and Sanitation Pooled Fund, Tamil Nadu designated as State Pooled Finance Entity for the State of Tamil Nadu. |
|
(c) |
Purpose |
— |
To part fund the projects implemented by seven Urban Local Bodies under Water Supply Scheme and Under Ground Sewerage Scheme of Tamil Nadu. |
|
(d) |
Tenure of the Bond |
— |
Ten years with five years principal moratorium. |
|
(e) |
Total issue size |
— |
Forty-five crore rupees. |
|
(f) |
Interest |
— |
Not exceeding 8 per cent per annum. |
2. The said Bonds are specified subject to :—
(i) the conditions laid down in the Guidelines for the Pooled Finance Development Scheme notified vide Resolution No. K-14011/40/01-UD II (Vol. III) dated 25th October, 2006 of the Ministry of Urban Development and the Guidelines for issue of tax-free Pooled Finance Development Bonds circulated vide OM F. No. K-14011/40/01-UD II (Vol. IV) dated 7th June, 2007 of the Ministry of Urban Development; and
(ii) the condition that they are issued within a period of twelve months from the date of publication of this notification in the Official Gazette.
CAclubindia
Ravikumar.G
Published in Income Tax