Income Tax-Notification No. 16/2012 Dated 30.04.12 regarding Infrastructure Debt Fund

INCOME-TAX (FIFTH AMENDMENT) RULES, 2012 - INSERTION OF RULE 2F

NOTIFICATION NO. 16/2012 [F. NO. 149/72/2011-SO (TPL)], DATED 30-4-2012

In exercise of the powers conferred by clause (47) of section 10 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (5th Amendment) Rules, 2012.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, after rule 2E, the following rule shall be inserted, namely:-

"Guidelines for setting up an Infrastructure Debt Fund for the purpose of exemption under clause (47) of section 10.

2F. (1) The Infrastructure Debt Fund shall be set up as a Non-Banking Financial Company conforming to and satisfying the conditions provided by the Reserve Bank of India in the Infrastructure-Development Fund - Non-Banking Financial Companies (Reserve Bank) Directions, 2011, vide notification No. DNBS.233/CGM (US)-2011, dated 21st November, 2011.

(2) The funds of Infrastructure Debt Fund shall be invested only in the Public Private Partnership Infrastructure Projects and Post - Commencement Operation Date Infrastructure Projects which have completed at least one year of satisfactory commercial operation and such Infrastructure Debt Fund is a party to tripartite agreement with the concessionaire and the project authority for ensuring compulsory buy out and termination payment.

(3) The Infrastructure Debt Fund shall issue rupee denominated bonds or foreign currency bonds in accordance with the directions of Reserve Bank of India (RBI) and the relevant regulations under the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000, as amended from time to time.

(4) The terms and conditions of any bond issued by the Infrastructure Debt Fund shall be in accordance with the said directions of the Reserve Bank of India and the regulations referred to in sub-rule (3).

(5) In case of an investor in the aforesaid bond being a non-resident the original or initial maturity of bond, at time of first investment by such non-resident investor, shall not be less than a period of five years.

Provided that the investment made by a non-resident investor in such bonds shall be subject to a lock-in period of not less than three years, but the non-resident investor may transfer the bond to another non-resident investor within such lock-in period.

(6) The investment made by the Infrastructure Debt Fund in an individual project or project belonging to a group at any time, shall not exceed twenty per cent, of the corpus of the fund.

(7) No investment shall be made by the Infrastructure Debt Fund in any project where its sponsor or the associate enterprise or the group of such sponsor has a substantial interest.

(8) The Infrastructure Debt Fund shall file its return of income as required by sub-section (4C) of section 139 on or before the due date.

(9) In case the Infrastructure Debt Fund does not fulfil any of the conditions provided in this rule or directions of the Reserve Bank of India, all provisions of the Act shall apply as if it is not an Infrastructure Debt Fund referred to in clause (47) of section 10 of the Act.

Explanation. - For the purpose of this rule,-

 (i)  "associate enterprise" shall have the same meaning as assigned to it in section 92A of the Act;

 (ii)  "concern" shall have the same meaning as in clause (a) of Explanation 3 of sub-section (22) of section 2 of the Act;

(iii)  "concessionaire", "tripartite agreement" and "project authority" respectively shall have the same meaning as assigned to them in the Infrastructure Debt Fund-Non-Banking Financial Company (Reserve Bank) Directions, 2011;

(iv)  "corpus" means the total funds of the Infrastructure Debt Fund raised for the purpose of investment;

(v)  "group" means a group as defined in clause (mm) of section 2 of Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

(vi)  a person shall be deemed to have substantial interest in -

(a)  a company if he is the beneficial owner (including beneficial ownership held by one or more of his relatives, in case the person is an individual) of shares (not being the shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) holding not less than 10 per cent of the voting power; or

(b)  a concern other than a company if he is, at any time during the previous year, beneficially entitled to not less than 20 per cent of the income of such concern.

(vii)  "relative", in relation to an individual, means—

(a)  spouse of the individual;

(b)  brother or sister of the individual;

(c)  brother or sister of the spouse of the individual;

(d)  brother or sister of either of the parents of the individual;

(e)  any lineal ascendant or descendant of the individual;

(f)  any lineal ascendant or descendant of the spouse of the individual;

(g)  spouse of the persons referred to in sub-clauses (b) to (f); or

(h)  any lineal descendant of a brother or sister of either the individual or of the spouse of the individual.

(viii)  "sponsor" means a non-banking financial company, or a bank which is allowed to act as sponsor of Infrastructure Debt Fund in accordance with the directions of Reserve Bank of India."

L&T Infra -Tax Saving Bonds

Now, L&T has issued infrastructural bond for those who want to save more than Rs 1,00,000.  With the help of such type of bonds, income tax assessee can save extra benefit of saving of Rs. 20,000.00 under section 80CCF. Credit rating of L&T is CARE AA [ICRA] AA+.

 Opening Date of issue is 10th January, 2012

 Closing   Date of issue is 11th, February, 2012

The following KYC Documents are required for submission of L&T Infra Bonds 2012A series. 

1. Proof of identification for individuals, the following documents are accepted as proof for individuals:
   * Passport
   * Voter's ID
   * Driving Licence
   * Government ID Card
   * Defence ID Card
   * Photo PAN Card
   * Photo Ration Card
   
2. Proof of residential address; the following following documents are accepted as proof of residential address:
   * Passport
   * Voter's ID
   * Driving License
   * Ration Card
   * Society Outgoing Bill
   * Life Insurance Policy
   * Electricity Bill
   * Telephone (Land/Mobile) Bill.
   
3.  Copy of the PAN card. 

Download Form (click here)

Latest IFCI Infrastructure Bonds Series-4 -Close Date is 16th Jan. 2012 (80-CCF)

IFCI has issued Tax Saving Infrastructure Bonds -Series-4 for investment of Rs. 20,000/- under section 80-CCF.  Last date for submission of application is 16th Jan. 2012.  There are two options having interest 9.09% and 9.16%.   To download the application form some information is required like Name, Email Address, Contact Number, City and PAN Number.  Issue open date is November 30,2011 and Close Date is January 16, 2012. Complete features are available in below given Memorandum of this IFCI Tax Saving Infrastructure Bonds Series-IV and main features are given as under :-

IFCI TAX SAVING LONG TERM INFRASTRUCTURE BONDS-SERIES-IV

• To download Application Form, click here .
  
• To download Information Memorandum, click here .
  
• For Collecting Bank Branches list viz: HDFC Bank- click here

                             

L&T Infrastructure Finance Company Limited,Long Term Infrastructure Bonds 2011B Series (Tranche 1)

Friends,  L&T Long Term Infrastructure Bonds are available to invest money for Tax Saver Assessee's.  An Assessee can claim extra deduction of Rs. 20,000 under section 80CCF.

Last Date or Issue Close date of Investment in L&T infrastructure Bond is 24th December,2011

Download Application Form of Tax Saving Bonds, KYC Requirements, Prospectus & Shelf Prospectus.

Instructions :- Don't use Photocopies of the form.  System generates unique Application No. for each form.  I mean to say, Application No. of the downloaded form is different for every downloaded form.   It is good idea of L&T to serve their forms.  Investor can collect form from internet. 

To download Multiple Forms or With Code or Without Code (Click Here)

80CCF (IFCI Infrastructure Bond) Tax Saving Bonds

Investors are requested to draw your attention on IFCI Infrastructure Bond. IFCI has once again authorised by Government of  India to issue Long Term Infrastructure Bonds carrying tax benefits under Section 80CCF of Income Tax 1961 upto an investment of Rs. 20,000/- during the Financial Year 2011-12. IFCI has also scheduled to close Infrastructure Bond on 14th November, 2011.  This Series III issue of Tax Saving Infrastructure Bond having four options for investment which are detailed given below:-

1. 10 Years
   -Cumulative
   -8.50% P.A.
   -Buyback option at 5th and 7th year end.
2. 10 Years
   -Annual
   -8.50% P.A.
   -Buyback option at 5th and 7th year end.
3. 15 Years
   -Cumulative
   -8.75% P.A.
   -Buyback option at 7th,10tth, and 12th year end.
4. 15 Years
   -Annual
   -8.75% P.A.
   -Buyback option at 7th,10tth, and 12th year end.

Notes :-

• Bonds can be applied for in physical or dematerialised form.
• The face value and issue price per bond is Rs. 5000/-
• Bond shall be listed on Bombay Stock Exchange (BSE)
• There is lock-in period of 5 years after which they can be traded/transferred.

To know more regarding this issue (click here)

Claim of Deduction for Infrastructure Bond (80CCF) in NSDL Software

Friends,  There are two columns (Serial No 337 and 338)  in NSDL RPU software for entering of Deduction of Chapter VIA which are detailed given below :-

• Column Number 337 denotes  that  "Aggregate Amount of Deductions Under Sections 80C, 80CCC and 80CCD (Total to be limited to amount specified in section 80CCE)"
• Column Number 338 denotes that  "Amount Deductible Under any other Provision(s) of  Chapter VI-A.

Picture view for the same is also given as under :-

On reading above it is very much clear that deduction amount under section 80CCF can not be entered in column number 337.  It will be shown in column Number 338. Before taking any final solution, some detailed deductions relating to this topic is given as under :-

80C as per Income Tax Act  (Click Here to know more)

80CCC as per Income Tax Act

⁵[Deduction in respect of contribution to certain pension funds.

80CCC. (1) Where an assessee being an individual has in the previous year paid or deposited any amount out of his income chargeable to tax to effect or keep in force a contract for any annuity plan of Life Insurance Corporation of India ⁶[or any other insurer] for receiving pension from the fund referred to in clause (23AAB) of section 10, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount paid or deposited (excluding interest or bonus accrued or credited to the assessee’s account, if any) as does not exceed the amount of ⁷[one lakh] rupees in the previous year.

(2) Where any amount standing to the credit of the assessee in a fund, referred to in sub-section (1) in respect of which a deduction has been allowed under sub-section (1), together with the interest or bonus accrued or credited to the assessee’s account, if any, is received by the assessee or his nominee—

          (a)  on account of the surrender of the annuity plan whether in whole or in part, in any previous year, or

          (b)  as pension received from the annuity plan,

an amount equal to the whole of the amount referred to in clause (a) or clause (b) shall be deemed to be the income of the assessee or his nominee, as the case may be, in that previous year in which such withdrawal is made or, as the case may be, pension is received, and shall accordingly be chargeable to tax as income of that previous year.

⁸[(3) Where any amount paid or deposited by the assessee has been taken into account for the purposes of this section,—

          (a)  a rebate with reference to such amount shall not be allowed under section 88 for any assessment year ending before the 1st day of April, 2006;

          (b)  a deduction with reference to such amount shall not be allowed under section 80C for any assessment year beginning on or after the 1st day of April, 2006.]]

80CCD as per Income Tax Act

⁹[Deduction in respect of contribution to pension scheme of Central Govern-ment.¹⁰

80CCD. (1) Where an assessee, being an individual employed by the Central Government ¹¹[or any other employer] on or after the 1st day of January, 2004, ¹²[or any other assessee, being an individual] has in the previous year paid or deposited any amount in his account under a pension scheme notified or as may be notified by the Central Government, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount so paid or deposited ¹³[as does not exceed,—

          (a)  in the case of an employee, ten per cent of his salary in the previous year; and

          (b)  in any other case, ten per cent of his gross total income in the previous year.]

(2) Where, in the case of an assessee referred to in sub-section (1), the Central Government ¹⁴[or any other employer] makes any contribution to his account referred to in that sub-section, the assessee shall be allowed a deduction in the computation of his total income, of the whole of the amount contributed by the Central Government ¹⁴[or any other employer] as does not exceed ten per cent of his salary in the previous year.

(3) Where any amount standing to the credit of the assessee in his account referred to in sub-section (1), in respect of which a deduction has been allowed under that sub-section or sub-section (2), together with the amount accrued thereon, if any, is received by the assessee or his nominee, in whole or in part, in any previous year,—

          (a)  on account of closure or his opting out of the pension scheme referred to in sub-section (1); or

          (b)  as pension received from the annuity plan purchased or taken on such closure or opting out,

the whole of the amount referred to in clause (a) or clause (b) shall be deemed to be the income of the assessee or his nominee, as the case may be, in the previous year in which such amount is received, and shall accordingly be charged to tax as income of that previous year.

¹⁵[(4) Where any amount paid or deposited by the assessee has been allowed as a deduction under sub-section (1),—

          (a)  no rebate with reference to such amount shall be allowed under section 88 for any assessment year ending before the 1st day of April, 2006;

          (b)  no deduction with reference to such amount shall be allowed under section 80C for any assessment year beginning on or after the 1st day of April, 2006.]

¹⁶[(5) For the purposes of this section, the assessee shall be deemed not to have received any amount in the previous year if such amount is used for purchasing an annuity plan in the same previous year.]

Explanation.—For the purposes of this section, “salary” includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.]

80CCE as per Income Tax Act

¹⁷[Limit on deductions under sections 80C, 80CCC and 80CCD.

80CCE. The aggregate amount of deductions under section 80C, section 80CCC and ^17a[section 80CCD] shall not, in any case, exceed one lakh rupees.]

80CCF as per Income Tax Act

¹⁸[Deduction in respect of subscription to long-term infrastructure bonds.

80CCF. In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, the whole of the amount, to the extent such amount does not exceed twenty thousand rupees, paid or deposited, during the previous year relevant to the assessment year beginning on the 1st day of April, 2011 ^18a[or to the assessment year beginning on the 1st day of April, 2012], as subscription to long-term infrastructure bonds as may, for the purposes of this section, be notified^18b by the Central Government.]

Infrastructure Bonds 2011

Friends,  L&T has issued Long-term Infrastructure Bonds named L&T Infra Bonds.  Two options are available in it.  Some detail regarding investment in L&T Infrastructure Finance Company Limited- Long Term Infrastructure Bonds 2011A Series are given as under :-

Invest more than Rs. 1,00,000 (one Lac) and Save Your Income Tax according to your Tax Slab

  

INVESTMENT DETAILS
Series	1	2
Frequency of Interest	Annual, i.e. yearly payment of interest	Cumulative i.e. cumulative interest payment at the end of maturity or buyback as applicable
Face Value and Issue Price (Rs./bond )(A)	1000	1000
Minimum Application	Five (5) Bonds. For the purpose of fulfilling the requirement of minimum subscription of five (5) Bonds, at Applicant may choose to apply for five (5) Bonds of the same series or five (5) Bonds across different series
Buyback Facility	Yes	Yes
Buyback Date	First Working Day after 5 years from the Date of Allotment and first working day after 7 years from the date of Allotment	First Working Day after 5 years from the Date of Allotment and first working day after 7 years from the date of Allotment
Interest Rate	8.20% p.a.	8.30% p.a. compounded annually
Maturity Date	10 years from the Date of Allotment	10 years from the  Date of Allotment
Maturity Amount (Rs./Bond)	1000	2220
Buyback Amount(Rs./Bond)	1000 at the end of 5 years/ 1000 at the and of 7 years	1490 at the end of 5 years/ 1748 at the and of 7 years
Buyback Intimation Period	The period commencing from 6 months preceding the corresponding Buyback Date and ending 3 months prior to the corresponding Buyback Date
Yield of the Bond on Maturity	8.20% p.a.	8.30% p.a. compounded annually
Yield of the Bond on Buyback	8.20% p.a.	8.30% p.a. compounded annually

Issue Opens On : Monday, February 7, 2011
Issue Closes On : Monday, March 7, 2011

Requirement of Documents: -

1. Photocopy of PAN Card, self attested.
2. Proof of Address, self attested.
3. Multicity Cheqeue for Investment.
4. One cancelled cheque in case if option to hold the Bonds in Physical Form. 

Toll Free Number  :- 1800 102 2131 or +91 22 4060 5444
Email at : -savetax@ltinfra.com
Website : www.ltinfrabond.com

Download Application Form (Click Here)

Save Income Tax up to 10%,20% or 30%

Friends,  If you have taxable income after saving 1,00,000.00 in 80C and you want to save further money for saving of Income Tax, IDFC has released infrastructure Bond.  Last date for investment in IDFC Bond is 4th Feb, 2011.  There are two type of investment i.e. cumulative or non-cumulative.  Minimum investment is Rs. 5000/- for a bond.   Income Tax benefit is available for  investment in IDFC Infrastructure Bond under section 80CCF.  Maximum investment in IDFC Bond for taking deduction u/s 80CCF  worth  Rs. 20000/- can be done.  

Saving of Income Tax depends upon your Income Tax Slab:-

1. If you are paying 10% income tax slab, then 10% of Rs. 20,000/- = 2,000.00 can be saved.
2. If you are paying 20% income tax slab, then 20% of Rs. 20,000/- = 4,000.00 can be saved.
3. If you are paying 30% income tax slab, then 30% of Rs. 20,000/- = 6,000.00 can be saved.

To download form or complete enquiry  regarding IDFC Infrastructure Bond (click here.)