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ISSUE HIGHLIGHTS – POWER FINANCE CORPORATION TAX FREE BONDS
Issue Opens on 5 Oct 2015, Monday
Issue Closes on
9 Oct 2015, Friday
(Subject to Early Closure)
Credit Rating AAA by CRISIL, ICRA & CARE
Allotment On First come First Serve Basis
Face Value &
Rs. 1000 per Bond
Interest from these Bonds do not form part of total income as per provisions of Section 10 (15) (iv) (h) of Income Tax
Act, 1961 read along with Section 14A (1) of the Income Tax Act.
Since the interest income on the bonds is exempt, no tax deduction at source (“TDS”) is required. However interest on
application money would be liable for TDS as well as would be subject to tax as per present tax laws.
Wealth tax has been abolished w.e.f. financial year 2015-16 i.e. assessment year 2016-17.
Feature Tax Free Bonds FD
Safety Quasi Sovereign. Secured. Low Risk. Moderate (Banks) to High Risk (Pvt Cos)
Interest Tax Free Taxable
Listed in Exchanges, hence Tradable.
Liquidity subject to Volumes
Not Tradable. Pre-Matured withdrawal
with penal interest
Possible, as the bonds prices are linked to the
movements of Interest Rates in the economy