Indian Railway Finance Corporation – IRFC Tax Free Bonds

IRFC Tax Free BondsISSUE: Indian Railway Finance Corporation Limited Bonds (IRFC Bonds) – Tax Free, Secured, Redeemable and Non-Convertible Bonds.

Issue Opening Date: Friday, January 27, 2012
Issue Closing Date: Friday, February 10, 2012
Interest Rate: 8.10% annually.
Credit Rating: “CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE & “ICRA AAA” by ICRA
Allotment Basis: First-come-First-serve basis.

 

BOND PARTICULARS:

ISSUER IRFCL IRFCL
Issue Structure Secured, NCD, Listed in NSE BSE Secured, NCD, Listed in NSE BSE
Expected Issue Size Rs.6300.Cr Rs.6300.Cr
Credit Rating AAA by CRISIL & ICRA AAA by CRISIL & ICRA
Face Value Rs.1000 per bond Rs.1000 per bond
Minimum Subscription 50 Bonds 50 Bonds
Tenure 10 Years 15 Years
Interest Payment Date 15th October Annually 15th October Annually
Put & Call Option None None
Coupon Rate -for(Application > Rs.5.00 Lacs) 8.00%p.a. 8.10%p.a
Coupon Rate for Retail Category(Application <= Rs.5.00 Lacs) 8.15%p.a.* 8.10% p.a*
Issue Opens 27TH January 2011 27TH January 2011
Issue Closes
Allocation Basis first-come first-serve basis. first-come first-serve basis.

HIGHLIGHTS OF TAX BENEFITS:

  • 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.

REQUIRED DOCUMENTS:

For Indian Citizens:

A. To apply in Demat form:

  1. Cheque OR Demand Draft.
  2. PAN Card copy (self attested)
  3. Cancelled Cheque

B. To apply in Physical form:

  1. Cheque or Demand Draft (DD)
  2. PAN Card copy (self attested)
  3. Cancelled Cheque
  4. Self attested Copy of Address Proof: ration card OR passport copy OR bank statement OR passbook OR telephone bill OR driving license OR home rental/sale agreement OR any government id.

For NRIs (Non-resident Indians):

A. To apply in Demat form:

  1. Cheque from NRE/NRO account
  2. PAN Card Copy – self attested
  3. Cancelled Cheque

B. To apply in Physical form:

  1. NRE or NRO Cheque or DD.
  2. PAN card copy – self attested.
  3. Cancelled cheque – if the check does not display your name and account status- NRE/NRO, then Self Attested Bank Statement copy.
  4. INDIAN address proof copy – self attested like: ration card OR passport OR bank statement OR passbook OR telephone bill OR driving license OR home rental/sale agreement OR any other government id.

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