The Reserve Bank of India vide its Circular No A.P. (DIR Series) Circular No. 82 dtd 21/02/2012 has liberalised the payment of foreign exchange upto 5000 USD on account of Imports.
The relevant circular is reproduced below :-
PDF
Very often we come across advertisements which offer lower rate of interest rate on loans. Many times, the lending institutions resort to advertising rate of interest with a asterisk mark and the asterisk mark will say that the rate of interest is a Flat rate. Some lenders advertise their loan products at Diminishing rate of interest. As a wise investor/borrower understanding both these types of Interest calculations will help you make correct decisions.
Flat rate method
Flat rate of interest is a simple rate of interest calculated on the full loan amount without giving effect to the amount of loan repaid.
Diminishing/Reducing Balance Method
On the other hand, diminishing/reducing rate of interest gives effect to the amount of loan repaid.
We will take the following calculation :-
Loan Amount Rs 100000/-
Tenure 5 Years
Rate of Interest 10% p.a.
Flat rate Method
Interest Amount = Rs. 50000/-
(100000 x 10% x 5)
EMI Amount = Rs. 2500/- per month for 5 years
(Rs. 150000 / 60 months)
Diminishing/Reducing method
EMI Amount = Rs. 2125/-
Total Amount paid = Rs. 127500/-
Interest Amount = Rs. 27500/-
The difference in Interest amount under both the methods is on account of the fact that under reducing/diminishing balance method, the principal repaid every month is taken into account for Interest/EMI calculation and as a result, the total interest amount under reducing balance is lesser than that of the interest as per Flat method.
We provide herewith the following tools for various calculations :-
1) Tool to Find out rate of Interest from EMI
2) Flat rate to Diminishing rate covertor
3) Diminishing rate to Flat rate convertor
Hope these tools will serve as an aid to make your decisions.
Click here to send your enquiry/feedback
Worksheet to find out Rate of Interest from EMI
Flat rate to Diminishing Rate Convertor
Diminishing Rate to Flat rate Convertor
Feb 212012
The Income-tax department, vide its NOTIFICATION NO. 9/2012 [F. NO.225/283/2011-ITA(II)], DATED 17-2-2012 has exempted the persons (salaried assessees) with income less than 5 lakhs from furnishing their return of Income.
For whom this benefit is available ?
1) The assessee should be an Individual; and
2) The Total Income does not exceed Rs. 500000/- . Here Total income means, income after claiming exemptions, deduction u/s. 80C,etc.,.; and
3) Such total income shall be ONLY from the following heads:-
i) “Salaries”
ii) “Income from other Sources” , by way of Interest from a Savings account in a bank, not exceeding Rs. 10,000/-.
Conditions for availing this benefit :-
1) The salaried employee has to report correct PAN to his employer.
2) The salaried employee has to correctly declare his income from Savings Bank Interest to the employer and the employer has to deduct the tax there on.
3) The salaried employee has to obtain Form 16 from his employer with the details of PAN, Income , Tax Deducted at Source thereon and the Tax Deposit details.
4) The salaried employee shall ensure that the tax due on the above income has been fully discharged through tax deduction at source and the same has been deposited by the employer into the Central Government account.
5) The net result of Tax computation shall not be refund.
6) The salaried employer has received salary from only one employer during the year.
7) The Income-tax department should not have issued any notice to the assessee requiring him to file his return of Income.
Only if ALL the above conditions are satisfied, the assessee can avail the benefit of non filing of his return of Income. If any ONE of the above conditions is not satisfied, the assessee has to necessarily file his/her return of income.
Myths & Facts :-
|
Sl. No. |
Myth |
Fact |
|
1 |
The basic exemption limit has been enhanced to Rs. 5 Lakhs | The basic exemption limit has not been enhanced. The relief is in respect of return filing requirements only. |
|
2 |
All assessees with Rs. 5 Lakhs of Income need not file their return of Income. | Only assesees having Income from Salary & Interest on Savings Account having total income less than 5 Lakhs can make use of this provision. All other assessees shall file their return of income even if the Income is less than Rs. 5 Lakhs. |
|
3 |
Assessees with income upto Rs. 5 Lakhs need not pay tax. | Tax due has to be necessarily discharged/paid by way of Tax deduction at Source by the employers. |
|
4 |
There is no obligation on the part of the assessee with income less than 5 Lakhs | It is necessary that the assessee declares his Interest income upto Rs. 10000/- to his employer and the tax due on the same has been deducted at source. |
|
5 |
Salaried employees need not declare their income other than Salaries & Interest on SB account. | If the assessee has other sources of income (viz.,) Capital Gains, Rent, FD Interest,Business , etc., he has to necessarily file his return of income and pay tax irrespective of the fact that the income is below or above 5 Lakhs. |
|
6 |
Only TDS certificate (Form 16) from the employer is sufficient. | Not only the TDS Certificate, the remittance of TDS deducted on account of salaries to Central Government account shall also be ensured by the employee. |
|
7 |
Salary income means income after considering the Interest on Self Occupied Housing Loan. | Salary Income does not include the loss arising on account of Interest on Housing loan in respect of Self Occupied/Let out Property. Hence , if an assessee has any Interest on Housing loan to be claimed, he has to file the return of Income compulsorily. |
Other Points :-
- Even if there is a small amount of tax payable/refund , this benefit cannot be availed. Hence , as per Form 16, the Final tax payable should be “NIL”.
- If the assessee has been employed with more than one employer during the year, this benefit cannot be availed.
- If the assessee has Salary and Interest income below 5 Lakhs but has not furnished the Interest Income details to his employer for inclusion in the Form 16, this benefit cannot be availed.
- Many banks and financial institutions require the copies of the Income-tax returns to consider the loan applications. In the absence of filing, the applicants may face hardship in obtaining a loan.
- Assuming a salaried assessee is maintaining a minimum balance of Rs. 10,000/- in a savings account, his Savings Bank Interest for a year will be RS.800/-. (Assuming the rate of Interest @ 8%) . On account of this provision, the assessee’s tax liability will be more by Rs. 80/- (Rs. 800/- x 10%). Till last year, many of the salaried employees would not have declared this income and paid tax on the same.
Click here to send your enquiry/comments.
The relevant notification is reproduced below :-
Is the IT Department really watching you?
In recent times, lot of news coverage is being given to the proceedings by the Income-tax department in respect of their action against tax evaders. Very often we see Newspaper advertisements and TV commercials warning the tax evaders to comply with Income-tax filing and payment requirements. These advertisements/commercials will also have a caption saying “The Income-tax Department is watching” , “The Income-tax Department is having information of transactions” etc…, Given the lower Direct/Indirect collections, the Central Government turns to the Income-tax department with new targets to cover the shortage of its revenue from Direct taxes. Sometimes, due to ignorance of law, many Lower Income / Middle Income group assessees get into trouble by not declaring their correct income and the transactions. It is imperative that the small/medium income group assessees shall be aware of the sources of the information from where the Income-tax department gains access to these data. This will help them in planning their taxes and also to make necessary/correct declarations in their return of income , so that they are out of the mental agony/ pressure of attending the Income-tax office hearings. This article is aimed at providing details of various transactions, which are primarily accessed by Income-tax Department to get hold of the tax evaders.
Transactions watched by Income-tax Department
1) Cash Deposits in Savings Bank Account
The primary source of information to the Income-tax Department is Savings bank accounts maintained by the account holders in the banks. All the banking companies to which the Banking Regulation Act, 1949 applies are compulsorily required to provide information to the income-tax department in respect of :-
“CASH DEPOSITS AGGREGATING TO TEN LAKHS OR MORE IN A YEAR IN ANY SAVINGS ACCOUNT OF A PERSON MAINTAINED IN THAT BANK”
It has to be noted that Deposit of Cash in Savings bank account are only covered under this. Due to the advent of Net Banking/Core Banking facilities , many of the assessees tend to use the savings account to transact for their personal / business purposes.
How to play safe :-
- Avoid frequent cash deposits into the Savings Bank account.
- Where it is necessary to deposit cash more frequently, open a Current Account. Many banks offer the facility to open a current account in personal names also.
- Always use the Cheque/Net Banking facility to transfer funds instead of cash deposits.
- Never encourage to use your Debit Cards by third parties to with draw cash from your account on account of the payments due to them.
- When the cash deposit is absolutely unavoidable,
- ensure that the cash deposits during the year does not exceed 10 Lakhs in a year. (Apr-March)
- make cash deposit in more than one Savings Bank account so that the threshold limit is split to two accounts and within the limits specified.
- When the transaction is already done, don’t forget to declare the same in your Income-tax returns to have a minimum damage.
2) Credit Card Payments
The other primary information is obtained from the Credit Card companies. Due to convenience the plastic money offers, more and more people are turning towards obtaining and using Credit cards to a greater extent. Nowadays , obtaining credit cards has become relatively easy. Same way the usage of the same is also increasing day by day. All the banking companies issuing credit cards are compulsorily required to provide information to the income-tax department in respect of :-
“PAYMENTS MADE BY ANY PERSON AGAINST BILLS RAISED IN RESPECT OF A CREDIT CARD ISSUED TO THAT PERSON , AGGREGATING TO TWO LAKH RUPEES OR MORE IN THE YEAR”
How to play safe :-
- Limit your transactions in the Credit card to less than Rs. 2 Lakhs in a year.
- Where it is unavoidable, obtain additional card and try to split the transactions to more than one credit card from a different credit card company.
- Never make any purchases for others using your card , as this is likely to get recorded in the books as your transaction.
- When the transaction is already done, don’t forget to declare the same in your Income-tax returns to have a minimum damage.
3) Purchase of Units in Mutual funds
Many assessees , particularly persons who are not interested in trading in securities on their own, prefer to invest in Mutual funds. This offers them the comfort of utlising the expertise of the Fund Managers and good returns at the same time. This is evident from the growth of the mutual fund sector in the last decade. This also serves as a source of information for the Income-tax department. A trustee of a mutual fund or such other person managing the affairs of the Mutual fund is required to provide information to the income-tax department in respect of :-
“RECEIPT FROM ANY PERSON OF AN AMOUNT OF TWO LAKH RUPEES OR MORE FOR ACQUIRING UNITS OF THAT FUND.”
How to play safe :-
- Split the investments between your family members so that the overall limit is not exceeded.
- Plan your investments in more than one scheme of the mutual fund schemes to escape from this limitation.
- When investments are made during year end, split the investment between March & April so that you can take both the benefits of investment more than 2 lakhs and investment in the same name.
- When the transaction is already done, don’t forget to declare the same in your Income-tax returns to have a minimum damage.
4) Purchase of Bonds/Debentures issued by Companies
Due to the raise in the rate of interests and availability of large amount of funds, more and more companies are turning towards issue of Bonds/Debentures for mobilizing funds for their businesses. This is also evident from the increase in number of bond/debenture issues by many companies inIndiatoday. This is another source of information for the Income-tax department for gathering information regarding investments by assesses/ non-assessees. A Company (or) an institution issuing bonds or debentures is required to provide information to the income-tax department in respect of :-
“RECEIPT FROM ANY PERSON OF AN AMOUNT OF FIVE LAKH RUPEES OR MORE FOR ACQUIRING BONDS OR DEBENTURES ISSUED BY THE COMPANY OR INSTITUTION.”
How to play safe :-
- Split the investments between your family members so that the overall limit is not exceeded.
- Plan your investments in more than one scheme of the Bond/Debenture schemes to escape from this limitation.
- When the transaction is already done, don’t forget to declare the same in your Income-tax returns to have a minimum damage.
5) Purchase of shares in Public/Rights Issue
Many investors turn to the equity markets for their investments in order to diversify their investments and also to gain more from the equity markets. This has resulted in more and more companies coming out with Public/Rights issue of their shares. This serves as another source of information for the Income-tax department. Every company issuing shares through a public or rights issue shall provide provide information to the income-tax department in respect of :-
“RECEIPT FROM ANY PERSON OF AN AMOUNT OF ONE LAKH RUPEES OR MORE FOR ACQUIRING SHARES ISSUED BY THE COMPANY.”
How to play safe :-
- Split the investments between your family members so that the overall limit is not exceeded.
- Plan your investments in more than one scheme of the Bond/Debenture schemes to escape from this limitation.
- Please note that in case of investments through ASBA mode , where the amount was actually blocked and post allotment , shares are allotted, it will be considered as receipt for the shares even though the allotted shares are of less than Rs. 1 Lakh value. Hence it is important to note that application for shares through ASBA mode shall also be for less than Rs. 1 Lakh.
- Another point to be noted is that allotment of shares to the extent of 1 lakh is not necessary to get covered under this provision. Even an application for shares for Rs. 1 Lakh or more will cover this provision.
- When the transaction is already done, don’t forget to declare the same in your Income-tax returns to have a minimum damage.
6) Purchase or Sale of Immovable Property
Real estate Investments are considered as one of the best investment avenue to tame the effect of inflation. The return on investment in the real estate investments have also proved this. This sector offers vide range of investment opportunities for investors. The main and lucrative source of information is obtained from this sector by the Income-tax department. The source for this information is none other than the Government department itself. Every Registrar or Sub-registrar appointed under Section 6 of the Registration Act , 1908 shall provide information to the Income-tax department in respect of :-
“PURCHASE OR SALE BY ANY PERSON OF IMMOVABLE PROPERTY VALUED AT THIRTY LAKH RUPEES OR MORE.”
How to play Safe :-
- Always register properties with the value not less than the Guideline value as notified to avoid disputes at later stage.
- Never enter into undisclosed Real estate transactions which may result in trouble.
- Ensure that the transactions entered by you in real estate are declared in your books of accounts with proper sourcing for funding these transactions.
- Never transact real estate transactions through power of attorney. Remember that ,as per records, the Power of attorney holder is transacting on your behalf and the money received / paid by him is considered as your transaction. In such a case, declare the transaction in your books of accounts.
- Maintain complete records in respect of all real estate transactions. (Copies of Purchase Deeds, Sale Deeds , Construction agreements, Power of Attorneys, etc..,)
- Pay the relevant Capital Gains tax if applicable. Avoidance of this is a temporary relief. But the penalty levied for non-disclosure is more than the Capital gains.
- Try to plan your Capital Gains Tax. But do not try to evade the tax. There are many ways you can avoid capital gains tax. Use them wisely.
- Also note that purchase of agricultural land, industrial land, plots, flats, Residential properties and all other types of real estate transactions are covered under this provision.
7) Purchase of Bonds issued by RBI
Another source of information for the Income-tax department is the Bond market. Reserve Bank ofIndiaissues many bonds from time to time. Every officer of the Reserve Bank ofIndia, who is authorized by the RBI shall provide information to the Income-tax Department in respect of :-
“RECEIPT FROM ANY PERSON OF AN AMOUNT OR AMOUNTS AGGREGATING TO FIVE LAKH RUPEES OR MORE IN A YEAR FOR BONDS ISSUED BY THE RESERVE BANK OF INDIA.”
How to play safe :-
- Split the investments between your family members so that the overall limit is not exceeded.
- Plan your investments in more than one scheme of the Bond schemes to escape from this limitation.
- When investments are made during year end, split the investment between March & April so that you can take both the benefits of investment more than 5 lakhs and investment in the same name.
- When the transaction is already done, don’t forget to declare the same in your Income-tax returns to have a minimum damage.
8) Other Sources of Information
Apart from the above, the following are the other sources from which the Income-tax Department is tracing high value transactions :-
a) Street Surveys by the Income-tax Department
b) Form 15G/15H submitted to banks/financial Institutions for Non Deduction of tax at source.
c) Payment of huge capitation fees to Educational institutions for securing a seat for Higher Professional Education.
d) Huge TDS in a particular name not corresponding to the declared income.
e) Purchase of Jewellery in Cash for higher values.
f) Receiving data from builders, Investment consultants & others regarding high value transactions.
g) Frequent Purchase of Demand Drafts for higher values.
Conclusion :-
Due to the vide source of information available to the Income-tax Department, it is very much true that the Income-tax Department is watching all the high value transactions. Hence it is better to be aware of these transactions and plan your tax filings accordingly. A proper planning along with suitable declarations will make you feel safe and make you avoid sleepless nights.
Feb 012012
The due date for submission of ITR-V for A.Y. 2011-12 has been extended upto 31.03.2012 or 120 days from the date of upload whichever is later.
If you have e filed your Income-tax return and have failed to send the signed ITR-V to CPC-Bangalore, here is an opportunity for you to submit the ITR-V now. Those who have sent the ITR-V and yet to get the acknowledgement for the same can also make use of this opportunity. For the A.Y.2011-12 (F.Y.2010-11) , you can send the ITR-V till 31/03/2012 or 120 days from the date of upload whichever is later.
Source :- www.incometaxindiaefiling.gov.in
CIBIL (Credit Information Bureau India Ltd) Report is a very important report used by almost all the Financial Institutions who intend to know about the Credit worthiness of their prospective Borrowers.
This CIBIL report is now available for Companies also. This is available for Proprietorship,Partnership,Private Limited Company & Public Limited Company.
You can use this report to evaluate the potential business associates (For example, a new associate in other part of India whom you plan to establish a Business relationship)
The CIBIL report provides the information about the Company, their behaviour with the lending institutions, their debt position, pay back pattern, guarantees provided by them etc., which are vital for any business entity intending to enter into business relationship with others.
As privacy laws in India prevent the CIBIL from providing CIBIL reports directly to the third party, you can ask your potential business associate to obtain the same from CIBIL and submit the same to you for your appraisal.
For more info, you can visit www.cibil.com
Indian Railway Finance Corporation Ltd
Brief Introduction of the company:
Ø Financing arm of the Indian Railways, notified as a Public Financial Institution under Section 4A of the Companies Act, 1956.
Ø Registered as a NBFC-ND-IFC (Infrastructure Finance Company) with Reserve Bank ofIndia. 100% shareholding held by Government of India. Consistently profit making Public Sector Undertaking. Consistently rated ‘AAA’ by CRISIL, ICRA and CARE
Ø Impeccable track record of funding rolling stock asset creation worth Rs. 60,163 crore (5,060 locomotives, 32,115 passenger coaches and 1,39,659 freight cars) for Indian Railways so far, besides providing funding support of Rs. 2,294 crore to other Railway entities such as Rail Vikas Nigam Ltd., Rail Tel Corporation of India Ltd. Etc
Ø Networth as on September 30, 2011 is Rs 4487.49 crores. Net Profit after Tax as on September 30, 2011 is 201.52 crores and it stood at Rs.485.20 crores for year ended March 31, 2011 compared to Rs 442.69 crore in March 31, 2010.
Strengths
Assured net interest margin: The Company’s cost plus based lease agreement with the MoR (Ministry of Railways) ensures a net interest margin.
The Company enjoys a strategically important position in the Indian railway sector: The Company is wholly owned by the Government of India. The Company is a public financial institution and a non-banking financial company providing fund based support for the development of the Indian Railways.
Consistent track record of not having any non performing assets: As of September 30, 2011, IRFC do not have any non performing assets. All its loans and receivables accrue from the MoR and other related entities like RVNL, Pipavav Railway and RailTel.
Consistent financial performance: The Company has demonstrated consistent growth in its profitability. In addition, the Company has low establishment, overhead and administrative expenses and the Company’s operational efficiency is high, which results in increased profitability.
Low cost of borrowings: The Company’s costs of incremental borrowings were 7.62%, 7.70% and 8.98% in FY 2011, FY 2010 and FY 2009 respectively, which are relatively low with its peer group.
| Issue details: Issuer | Indian Railway Finance Corporation Limited |
| Issue of Bonds | Secured, Redeemable, Non-Convertible bonds in the nature of debentures, having benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961 |
| Issue Size | ` 3,000 crores with an option to retain oversubscription up to ` 6,300 crores (Shelf-limit) |
| Issue Open Date | 27th January, 2012 |
| Issue Closing Date | 10th February, 2012 |
| Face Value (Rs.) | ` 1,000 per Bond |
| Minimum Application | ` 10000 (10 Bonds) & in multiples of ` 5000 (5 Bonds) |
| Tenor/Redemption Date | 10 Years and 15 Years from the deemed date of allotment |
| Ratings | “CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE & “ICRA AAA” by ICRA |
| Security | Charge on the movable assets comprising of rolling stock such as wagons, locomotives and coaches by way of first/ pari passu charge, present and future, as may be agreed between IRFC and the Trustee, pursuant to the terms of the Debenture Trust Deed |
| Trading | Compulsorily in dematerialized form |
| Issuance | In dematerialized form as well as physical form, at the option of Applicants. |
| Lead Managers | A. K. Capital Services Ltd., SBI Capital Markets Ltd. & ICICI Securities Ltd. |
| Depository | National Securities Depository Ltd. and Central Depository Services (India) Ltd |
| Trustee | Indian Bank |
| Allocation | Category I (QIB+ Corporate)- up to 45%
Category II (Individual above 5 Lakhs)- up to 25% Category III (Individual below 5 Lakhs)- up to 30% |
| Listing | Proposed to be listed on BSE & NSE |
| Interest on Application Money used towards allotment of bonds | @ 8.00% p.a. on the amount for which Bonds are allotted to the Applicants subject to deduction of income tax under the provisions of the Income Tax Act, 1961, as amended, from the date of realization of the cheque(s)/ demand draft(s) or 3 (three) days from the date of banking of the application (being the date of submission of each application as duly acknowledged by the Bankers to the Issue) whichever is later, upto one day prior to the Deemed Date of Allotment |
| Interest on Application Money which is liable to be refunded | @ 4.00% p.a. on application money that is liable to be refunded to the Applicants in accordance with the provisions of the SEBI Debt Regulations, or other applicable statutory and/or regulatory requirements, subject to deduction of income tax under the provisions of the Income Tax Act, 1961, as amended, from the date of realization of the cheque(s)/ demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of presentation of each application as acknowledged by the Bankers to the Issue) whichever is later, upto one day prior to the Deemed Date of Allotment. Provided that IRFC shall not be liable to pay any interest on monies liable to be refunded in case of (a) invalid applications or applications liable to be rejected, and/or (b) applications which are withdrawn by the applicant. |
Highlights of Tax Benefits
Ø 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.
Ø 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.
Ø Wealth Tax is not levied on investment in Bonds under section 2(ea) of the Wealth-tax Act, 1957.
| The issue Options | I | II |
| Tenor | 10 Years | 15 Years |
| Face Value(Rs./Bond) | `1,000.00 | `1,000.00 |
| Minimum Application Size | ` 10000 or 10 Bonds | ` 10000 or 10 Bonds |
| In Multiples of | ` 5000 or 5 Bonds | ` 5000 or 5 Bonds |
| Coupon Rate (%)p.a. | ||
| Retail (Category III) | 8.15%* | 8.30%* |
| Others (Category I & II) | 8.00% | 8.10% |
| Interest Payment | Annually | Annually |
| Interest Payment Date | October 15, every year | October 15, every year |
| Redemption Date | 10 Years from the Deemed Date of Allotment | 15 Years from the Deemed Date of Allotment |
| Maturity Amount | Face Value + Interest Accrued at the Redemption Date | Face Value + Interest Accrued at the Redemption Date |
*The coupon rates of 8.15% p.a. and 8.30% p.a. shall be payable only to the original allottees under Category III for the Tranche 1 and Series I Bonds and Tranche 1 and Series II Bonds respectively and shall not be payable to the transferees in case the Bonds are transferred or sold by the original allottee. In such case, the transferees shall be entitled to receive coupon rates of 8.00% p.a. and 8.10% p.a. for the Tranche 1 and Series I Bonds and Tranche 1 and Series II Bonds respectively. However, in case of any transfer by a permanently disabled allottee to their legal heir(s), the transferee shall continue to be entitled to receive interest at the coupon rate of 8.15% p.a. and 8.30% p.a., for the Tranche 1 and Series I Bonds and Tranche 1 and Series II Bonds respectively. Where the Bonds are held in joint names and subsequently there is a change in the sequence of the names of the joint holders, the joint holders subsequent to such change in sequence of names, will be entitled to receive the interest at the coupon rate of 8.00% p.a. and 8.10% p.a., for the Tranche 1 and Series I Bonds and Tranche 1 and Series II Bonds respectively. However, in case of change in name of any of the joint holders, such joint holders shall continue to be entitled to receive interest at the coupon rate of 8.15% p.a. and 8.30% p.a., for the Tranche 1 and Series I Bonds and Tranche 1 and Series II Bonds respectively. In case of transmission of the Bond(s) in accordance with the Articles of Association of the Company, to the nominee in the event of demise of the Bondholder (single or joint holders) who was originally allotted Bonds under Category III, the new Bondholder (single or joint holders) shall continue to be entitled to receive interest at the coupon rate of 8.15% p.a. and 8.30% p.a., for the Tranche 1 and Series I Bonds and Tranche 1 and Series II Bonds respectively. For the purpose of classifying the investors into various categories, the applications will be consolidated on the basis of PAN. Consequent to such consolidation of applications, if an Applicant falls in any category other than Category III, such Applicant will not be entitled to receive the coupon rate of 8.15% p.a. and 8.30% p.a. for Tranche 1 Series I Bonds and Tranche 1 Series II Bonds respectively.
^ The Company shall allocate and allot Bond Series bearing longest maturity to all valid applications, wherein the Applicants have not indicated their choice of the relevant Bond Series in their Application Form.
Who Can Apply?
Ø Category I: QIB and Corporates
Ø Category II: Resident Indian individuals; Hindu Undivided Families through the Karta
Ø Non Resident Indians on repatriation as well as non-repatriation basis (Above Rs.5 Lakhs)
Ø Category III: Resident Indian individuals; Hindu Undivided Families through the Karta
Ø Non Resident Indians on repatriation as well as non-repatriation basis (Up to Rs.5 Lakhs)
Cheque/DD’s to be Crossed A/C payee & drawn in favour of:
For Non NRI’s “IRFC Tax Free Bonds – Escrow Account – Tranche I”
For NRI’s “IRFC Tax Free Bonds – NRI Escrow Account – Tranche I”
For FII’s “IRFC Tax Free Bonds – FII Escrow Account – Tranche I”
IMPORTANT: Please read the Prospectus of this issue carefully before investing in the same.
Disclaimer
The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither we nor any person connected with any our company accepts any liability arising from the use of this information and views mentioned in this document.
Jan 192012
In view of the Shortfall in the Revenue, and increase in fiscal deficit, the Central Government has directed the Income-tax Department to launch two month Special Initiative to trail and verify high value transactions by persons not assessed to tax or those who have not furnished their PAN during such deals.
This special Drive will be carried out from 20th January 2012 to 20th March 2012. This will drive will cover the following transactions :-
1) High Value Investments
2) High Value Deposits (Bank & Post Office)
3) High Value Expenditure
4) Purchase of Property/Vehicles/Shares and Bonds
from persons who have not assessed to tax (or) persons who have not furnised their PAN at the time of these transactions.
Persons who are covered as above will be issued notices for furnishing their PAN and if PAN is already submitted , they will be required to explain whether these investments were properly accounted and declared in their return of Income. The response for the same shall be sent by Speed/Registered Post.
In special cases, the Income-tax officers may also visit the premises of high value investors/assessees/depositors/Spendors.
Assessees/ Non-Assessees who have not accounted these transactions properly will be required to pay the due taxes and file the Income-tax returns on or before 31.03.2012. Penalty upto 300% of the tax unpaid shall be leviable along with prosecution is special cases.
Jan 172012
Infrastructure Development Finance Company Limited (IDFC) has come out with issue of Tax Savings Bonds, the Investment in which will qualify for additional deduction of Rs. 20000/- u/s. 80 CCF of the Income-tax Act,1961. The salient features of this issue are reproduced below :-
Click here to send your enquiry
Jan 172012
L & T Infrastructure Finance Company Limited has come out with issue of Tax Savings Bonds, the Investment in which will qualify for additional deduction of Rs. 20000/- u/s. 80 CCF of the Income-tax Act,1961. The salient features of this issue are reproduced below :-
Click here to send your enquiries
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