Indian Railway Finance corporation Ltd. (IRFC) is a dedicated financing arm of the Ministry of Railways. Its sole objective is to raise money from the market to part finance the plan outlay of Indian Railways. The money so made available is used for acquisition of rolling stock assets and for meeting other developmental needs of the Indian Railways.
The borrowing programme of IRFC is guided by the requirements projected by Ministry of Railways. IRFC is notified as a Public Financial Institution under Section 4A of Companies Act, 1956. It is registered as a NBFC-ND-IFC (Infrastructure finance company) with reserve Bank of India.
>>> Highlights of Tax Benefits:
1. The Income by way of Interest from these bonds is fully exempt from income tax and shall not form part of the
total Income as per provisions under section 10(15)(iv)(h) of IT Act.
2. 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.
3. Wealth Tax is not levied on investment in Bonds under section 2(ea) of the Wealth-tax Act, 1957.
>>> DOWNLOAD Application form of Indian Railway Finance corporation Bond – IRFC Bonds: || CLICK HERE ||
>>> Sailent Features of Proposed Tax free Bonds:
1. The Company shall issue Bonds upto an aggregate amount of Rs 6,300 crores in one or more tranche(s), on or
prior to March 31, 2012 pursuant to CBDT’s Notification dated September 23, 2011 which authorised the Company
to raise tax free bonds aggregating up to Rs 10,000 crores in the financial year 2011-12.
2. Credit Ratings of “CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE and “ICRA AAA by ICRA indicating Highest
Degree of Safety in terms of timely servicing of financial obligations.
3. Bonds to be allotted on first-cum-first serve basis up to the limit reserved for each category of investors.
4. Bonds can be held in physical or in dematerialized form, at the option of bondholders.
5. Bonds are proposed to be listed on the BSE and the NSE.
>>> Who can apply for these bonds?
1. Resident/ Non Resident Individual, HUF’s.
2. Partnership Firm/ LLP’s.
3. Companies/ societies registered under applicable laws and Authorize to invest in bonds.
4. Registered trust authorized to invest in bonds.
5. Public financial Institution as defined in section 4A of companies Act.
6. National Investment funds/ Mutual funds/ Foreign Institutional Investors (FII’s).
7. Insurance companies registered with IRDA.
>>> Who cannot apply for these bonds?
1. Foreign Nationals.
2. Minors without a guardian name.
3. Overseas Corporate bodies.
>>> Indian Railway Bond Application form – >> DOWNLOAD HERE <<

