« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  No perks for India Inc, fringe benefit tax to stay... Food processers want tax in cold storage... » Core sector bonds may be tax-free February, 07th 2007 In a move that will have major implications for infrastructure financing in India, the finance ministry and the Reserve Bank of India are discussing the possibility of allowing tax-exempt status to long-term infrastructure bonds raised by commercial banks.    Sources said Finance Minister P Chidambaram might make an announcement in this connection in Budget 2007-08, as part of his overall strategy for raising long-term finance for infrastructure.    The tax exemption on such bonds, which cover tenors of 10 to 20 years, is considered the key to mopping up savings from the general public. Though banks are eligible to issue infrastructure bonds under RBI guidelines, none have done so for lack of appetite from retail buyers.    Making infrastructure bonds eligible for tax exemptions will put them on a par with other tax-saving instruments, said a public sector bank chief. Major banks like ICICI Bank and IDBI said they would raise around Rs 4,000 crore each through infrastructure bond issues if the government provided tax benefits for investors in these longer-term instruments.    Many commercial banks have a large exposure to the infrastructure sector, but face an asset-liability mismatch because they mobilise short-term deposits, whereas infrastructure lending is typically long term.    Infrastructure funding, which the government is focussing on to sustain 9 per cent economic growth, is likely to figure prominently in the Budget. Chidambaram has said the infrastructure sector needs nearly $320 billion over the next five years.    In December last year, he appointed a committee headed by HDFC Chairman Deepak Parekh to suggest new instruments and measures to finance infrastructure development. The group is yet to submit its report.