Interest on bonds issued by local authorities - purpose of Section 10(15)(vii) of the Income-tax Act, 1961 - 52/2010 - Income Tax

Interest on bonds issued by local authorities - purpose of Section 10(15)(vii) of the Income-tax Act, 1961 Notification No. 52/2010 Dated 14-7-2010 In exercise of the power 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. [F.No.164/1/2010-ITA-I]