NOTIFICATION

INCOME-TAX ACT

Section 10(15)(vii ) of the Income-tax Act, 1961 - Exemptions - Interest on bonds issued by local authorities - Notified bonds

NOTIFICATION NO. 52/2010 [F. NO. 164/1/2010-IT(A-I)], DATED 14-7-2010

In exercise of the powers conferred by sub-clause (vii ) of clause (15) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the second tranche bond with the following particulars for the purpose of the said sub-clause, namely :—

(a)
Name of the bond
-
Tax Free Pooled Finance Development Bonds under Pooled Finance Development Fund Scheme of Government of India (Second Tranche)
(b)
Issuing Authority
-
Water and Sanitation Pooled Fund, Tamil Nadu designated as State Pooled Finance Entity for the State of Tamil Nadu.
(c)
Purpose
-
To part fund the projects implemented by seven Urban Local Bodies under Water Supply Scheme and Under Ground Sewerage Scheme of Tamil Nadu.
(d)
Tenure of the bond
-
Ten years with five years principal moratorium.
(e)
Total issue size
-
Eighty three crores nineteen lakhs only.
(f)
Interest
-
Not exceeding eight per cent per annum.

2. The said Bonds are specified subject to :—

        (i)the conditions laid down in the Guidelines for the Pooled Finance Development Scheme notified vide Resolution No. K-14011/40/01-UD.II (Vol. III), dated 25th October, 2006 of the Ministry of Urban Development and the Guidelines for issue of tax-free Pooled Finance Development Bonds circulated vide OM F. No. K-14011/40/01-UD. II (Vol. IV), dated 7-6-2007 of the Ministry of Urban Development, and

        (ii)           the condition that they are issued within a period of twelve months from the date of publication of this notification in the Official Gazette.

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