Central Government specifies Tax-free Pooled Finance Development Bonds under Pooled Finance Development Fund Scheme of Government of India. - 006/2008 - Income Tax

Central Government specifies Tax-free Pooled Finance Development Bonds under Pooled Finance Development Fund Scheme of Government of India. NOTIFICATION NO. 6/2008 DATED 14-1-2008 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 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. ( 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 — Forty-five crore rupees. ( f ) Interest — Not exceeding 8 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 25 th 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 th June, 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.