IRFC Tax Free Bond Feb 2014

Indian Railway Finance Corporation Limited (IRFC) Tax Free Bond Feb 2014 Interest Rate up to 8.88% pre tax rate up to 13.43%

 IRFC Tax Free Bond Feb 2014

Company Profile

 The primary objective of IRFC (Indian Railway Finance Corporation Ltd.) is to act as a financing arm for the Indian Railways.The development of the Company’s business is dependent on the MoR’s (Ministry of Railways) strategy concerning the growth of the Indian Railways. The MoR is responsible for the acquisition of rolling stock and for the improvement, expansion and maintenance of the railway infrastructure. The Company is responsible only for raising the finance necessary for the acquisition of rolling stock ordered by the MoR. The Company’s principal business therefore is borrowing funds from the commercial markets to finance the acquisition of new rolling stock which is then leased to the Indian Railways. Lease rentals represent the Company’s capital recovery plus the cost plus a net interest margin. A part of the funds so raised are also utilised for funding bankable projects (i.e. such projects or proposals that have sufficient collateral, future cash flows and high probability of success) approved by the MoR and which are executed by Rail Vikas Nigam Limited (“RVNL”).

IRFC Ltd Tax Free Bond Details Feb 2014

Particulars
Indian Railway Finance Corporation Limited
Type of InstrumentTax-Free, Secured, Redeemable, Non-Convertible Debentures
Issue Opening DateFebruary 28, 2014
Issue Closing DateMarch 07, 2014
Rating“CRISIL AAA/Stable” by CRISIL, “[ICRA] AAA” by ICRA & “CARE AAA" by CARE
Minimum ApplicationRs. 5000 in multiples of one bond
Face Value of BondRs. 1,000 per Bond
Interest on successful application Respective coupon rates
ListingProposed to be listed on NSE & BSE
Interest payment Payable Annually Only
IssuanceBoth in dematerialised form as well as in physical form as specified by the Applicant (except for Eligible QFIs) in the Application Form
TradingOnly in Dematerialised form

IRFC Ltd Tax Free Bond Series Details Feb 2014

Tenure
10 years
15 years
Series of BondsTranche – II Series IATranche – II Series IIA
Interest Rate (%) per annum Category I, II and III8.19%8.63%
Annualized Yield (%) per annum8.19%8.63%
Series of BondsTranche – II Series IBTranche – II Series IIB
Coupon Rate (%) per annum Category IV**8.44%8.88%
Annualized Yield (%) per annum8.44%8.88%

Who can apply / invest ?

1] Individual, 2] HUF, 3] Charitable Institute, 4] Company, 5] Firms, 6] Co-operative, 7] NRI, 8] Financial Institute

Benefits to the Investor:

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 I.T. Act, 1961.
There will be no deduction of tax at source from the interest, which accrues to the bondholders in these bonds irrespective of the amount of the interest or the status of the investors.
Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

Application Process and Form Submission/Collection Centers

Please take print of the Application Form A4 paper size. Click here to download Application form of IRFC Tax free Bond 2014
Attach following document along with the application form : –
1] PAN Card and Address Proof Photo Copy attested by applicant.
2] One Cancelled Cheque copy.
3] Bidding is mandatory.
4] Cheque / DD should be drawn in favour of “IRFC Tax Free Bonds 2013 – Escrow Account – R”.
5] On First come First Serve Basis
6] Keep photocopy of application form for your record.
7] Submit / deposit your NCD application form in Listed/ Design Bank Branches. (search below for your city)
8] To record and track the status/allotment of your application form, send us the soft copy Application Form/ Acknowledgement Slip.
9] The actual bond will reflect in your demat account within 8-12 weeks time form date of allotment.
10] Free Home Service available *

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