Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: list of goods taxed at 4% :: VAT RATES :: TDS :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: form 3cd :: VAT Audit :: due date for vat payment
« General »
 India’s GST among most complex in world, and it is 0% tax rate that is hurting the idea
 Can’t overrule courts with retrospective amendments, says Supreme Court
 Why tax planning should be an all-year round activity
 8 financial tasks you should do in the next 30 days
 Income Tax department may defend CPC in returns fraud case
  Income tax department sends notices to investors over tax treaty gains
 Seven months after GST rollout: Time for handholding over, Centre to intensify efforts to curb tax evasion
 Individual angels may get tax relief too
 The differences between tax and cess
 Startups that raised funds from angel investors face tax scrutiny
 Tax collection assumptions in India's budget ambitious

Govt cuts tax-free bonds size
November, 09th 2012

The Government has slashed the size of tax-free bonds to be issued by its companies this year by Rs 7,500 crore. It has allowed 10 state-run companies to raise Rs 53,500 crore through issuance of tax-free bonds by March 2013. This is lower than Rs 60,000 crore announced in Budget 2012-13, but significantly higher than Rs 30,000 crore allowed in 2011-12.

As the notification has come barely four months before the end of the financial year, investors will see a spate of tax-free bonds in the next few months. India Infrastructure Finance Company Ltd (IIFCL) will be the first government institution to hit the markets with the first tranche of its Rs 10,000-crore bond issue on November 12.

"We have just got approval from the government for raising Rs 10,000 crore from tax-free bonds. We will be issuing first tranche Rs 500 crore on Monday, IIFCL Chairman & Managing Director SK Goel.

Tax-free bonds (figures in Rs crore)
Company  Budget  Notification
NHAI  10,000  10,000
IRFC  10,000  10,000
IFFCL  10,000  10,000
Hudco  5,000  5,000
NHB  5,000  5,000
Sidbi  5,000  --
Ports  5,000  3,500
Power  10,000  10,000
Total  60,000  53,000

Others companies which have been allowed to issue bonds include Indian Railway Finance Corporation Limited and National Highways Authority of India (Rs 10,000 crore each), Housing and Urban Development Corporation Limited, National Housing Bank, Power Finance Corporation and Rural Electrical Corporation (Rs 5,000 crore each), Jawaharlal Nehru Port Trust (Rs 2,000 crore), Ennore Port Limited (Rs 1,000 crore), and Dredging Corporation of India Limited (Rs 500 crore).

In the Budget, Small Industries Development Bank of India was also allowed to issue tax-free bonds of Rs 5,000 crore, but in the notification issued on Tuesday, the finance ministry did not name Sidbi. It also cut the amount for tax-free bonds issuance by the port sector from Rs 5,000 crore to Rs 3,500 crore. The port companies were allowed to issue bonds of Rs 5,000 crore in 2011-12 too, but they did not raise any funds. Last year IRFC was allowed to raise Rs 10,000 crore, NHAI Rs 10,000 crore, and Hudco Rs 5,000 crore.

Companies will have to raise at least 75% of the amount of bonds issued through public issue and 40% of this would be earmarked for retail investors. The rest can be through private placement.

IIFCL would first do a private placement to institutional investors to the tune of Rs 2,500 crore, while the retail portion of Rs 7,500 crore will be done in 20 tranches of Rs 500 crore each by March 2013. The coupon rate will be between 7.35 per and 7.40%.

The finance ministry said retail individual investors, qualified institutional buyers, corporate and high net worth individuals will be eligible to subscribe to the bonds which will have tenure of 10 or 15 years. In case of IIFCL the tenure will be 10, 15 or 20 years.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions