| 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 | Rs 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.) | Rs` 1,000 per Bond |
| Minimum Application | Rs 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. |
The bonds will be listed on the BSE.
IRFC Tax Free Bonds and Bank Fixed Deposits
IRFC bonds score well for those in the highest tax bracket. So if you invest . 1 lakh in IRFC bonds, and are in the highest tax bracket, you will get an interest income of . 8,300 per annum for 15 years which is tax free. As against this, even if you earn a 9% interest on a bank fixed deposit and you are in the highest tax bracket (30.9%) you will earn an interest of Rs 9,000 per annum but will pay a tax of Rs 2,781, so the net interest you earn is only Rs 6,219, which is a yield of 6.22%
IRFC Tax Free Bonds and PPF
Tax-free interest of 8.3% is the highest available after PPF, and there is no upper ceiling on investment. Though PPF offers you an interest of 8.6%, it is subject to revision and the maximum amount you can invest is only Rs 1 lakh per annum.
Caution
Even though the bonds will be listed, one is not sure if there will be an active secondary market for these bonds. Hence, if you need the money in between, you may have no other way out.
How to Apply for IRFC Tax Free Bonds ?
Download IRFC Tax Free Bonds below and fill up, attach all the required documents and submit it to any of the collection centre below:
| 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 |
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.
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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online
Tax Saving Mutual Funds Online
These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs
Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
- HDFC TaxSaver
- ICICI Prudential Tax Plan
- DSP BlackRock Tax Saver Fund
- Birla Sun Life Tax Relief '96
- Reliance Tax Saver (ELSS) Fund
- IDFC Tax Advantage (ELSS) Fund
- SBI Magnum Tax Gain Scheme 1993
- Sundaram Tax Saver
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Application form for Tax Saving Infrastructure Bond and more information
Current open Infra Bond Application form
Submit filled up application Collection canter near you
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How to apply to IRFC Bonds?
Apply for IRFC Tax Free Bonds forms below
Download IRFC Tax Free Bond Application Forms
Submit the filled up form to Collection canter near you
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How to apply to HUDCO Bonds?
Apply for HUDCO Tax Free Bonds forms below
Download HUDCO Tax Free Bond Application Forms
Submit the filled up form to Collection canter near you
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How to apply to REC Bonds?
Apply for REC Tax Free Bonds forms below
Download REC Tax Free Bond Application Forms
Submit the filled up form to Collection canter near you
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