IRFC Tax Free Bond Application Forms

 

Infrastructure Bonds issued by Indian Railway Finance Corporation (IRFC). The interest income earned on such bonds is tax free (u/s 10 clause 15 of Income Tax Act). The bonds are issued by a Government Owned Undertaking and therefore carry a very high credit rating. The issue has been rated 'AAA/Stable by CRISIL', 'LAAA by ICRA' and 'AAA by CARE'.  The issue has two options – Option I (10 years) & Option II (15 years) – with coupon rates of 8.10% and 8.13 % p.a. respectively. As the interest income is tax free, the pre-tax yield works out to an impressive for Option I & Option II (for individuals in the highest tax bracket).

Infrastructure Bonds issued by Indian Railway Finance Corporation (IRFC) eligible Investors-Resident Indian Individuals, Scheduled Commercial Banks, Co-operative Banks, Financial Institutions, Insurance Companies, Provident Funds, Companies & Bodies Corporate, Trusts & Societies and any other authorized investor.

Company Profile: IRFC is notified as a Public Financial Institution u/s 4A of Companies Act, 1956. It is the financing arm of Indian Railways. 100% shareholding is held by  Government of India. It has been consistently making profits and rated AAA by CRISIL, ICRA and CARE. The company's Capital Adequacy Ratio stood at 160.70% and Profit after Tax was Rs.485.20 Cr as of March 31, 2011.