IDFC offers tranche 3 of tax-saving long term infrastructure bonds

The issue of tranche 3 bonds opened for subscription on 19 March 2012, and will close on 30 March 2012.

Infrastructure Development Finance Company (IDFC) has launched the public issue of the third tranche of long term infrastructure bonds of face value of Rs5,000 for an aggregate amount not exceeding Rs3,700 crore.

This is the issue of the third tranche of long term infrastructure bonds having benefits under section 80CCF of the Income Tax Act, 1961, by the company within the overall aggregate limit of Rs5,000 crore for the financial year 2011-12. The issue of tranche 3 bonds opened for subscription on 19 March 2012, and will close on 30 March 2012, or earlier, as may be decided by the board of the company. The tranche 3 bonds have been rated as (ICRA)AAA by ICRA and Fitch AAA(Ind) by Fitch.

While the ICRA rating indicates stable outlook and the highest degree of safety for timely servicing of financial obligations, the Fitch rating indicates a long term stable outlook.

The tranche 3 bonds will be issued in two series – Series 1 tranche 3 bonds and series 2 tranche 3 bonds and will carry an interest rate of 8.43% per annum. The tranche 3 bonds will carry a minimum lock-in period of five years from the deemed date of allotment and can be redeemed after ten years from the deemed date of allotment. The tranche 3 bonds also have a buy back option at the end of five years. The minimum subscription will be two tranche 3 bonds and in multiples of one tranche 3 bond thereafter.

For the purpose of fulfilling the requirement of minimum subscription of two tranche 3 bonds, an applicant may choose to apply for two tranche 3 bonds of the same series or two tranche 3 bonds across different series.

In accordance with section 80CCF, an amount, not exceeding Rs20,000 per annum in the year of investment, paid or deposited as subscription to long term infrastructure bonds during the previous year relevant to the assessment year beginning 01 April  2012, shall be deducted in computing the taxable income of a resident individual or hindu undivided family.

The company has raised approximately Rs1,200 crore in the first two tranches of infra bonds.

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Banking hours to be extended on 30th and 31st March: RBI

Branches of all banks conducting government business will suitably extend the banking hours on 30th and 31st March 2012 to facilitate receipt of government revenue from members of public even at late hours

With a view to facilitating accounting of all government transactions of the current financial year (2011-12) by 31 March 2012 and meeting the probable rush of tax-payers towards the end of the year, it has been decided that all regional offices of Reserve Bank of India (RBI) and branches of agency banks conducting government business will suitably extend the banking hours to conduct government business by keeping their counters open for the purpose on 30th and 31st March 2012 to facilitate receipt of government revenue from members of public even at late hours.

As regards conduct of special clearing on 31 March 2012 (with return clearing on the same day), the decision is to be taken by the department of payment and settlement systems, central office, Mumbai.

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Govt eyes Rs1,500 crore revenue from FM radio auction

The Phase I and Phase II auctions led to total revenue accrual of about Rs1,733 crore up to 31 May 2011 by way of one time entry fee, migration fee and annual fee among others.

The government said it expects to garner Rs1,500 crore in revenue from the auction of FM Radio Phase III license, for providing services in 227 cities, in addition to 86 cities covered currently.

“Total revenue expectation from three phases of [Phase III] FM radio auction is Rs1,500 crore. They [Finance Ministry] have given estimates for first phase, which is Rs500 crore,” information and broadcasting secretary Uday Kumar Verma told reporters on the sidelines of the CASBAA India Forum 2012.

"The auction will be conducted in phases. We will complete first phase by the end of this year," Verma said.

The Phase I and Phase II auctions led to total revenue accrual of about Rs1,733 crore up to 31 May 2011 by way of one time entry fee, migration fee and annual fee among others.

The Phase-III license would extend FM radio services to about 227 new cities, in addition to the present 86 cities, and would result in coverage of all cities with a population of one lakh and above through private FM channels.

In its budget proposals for FY13, the government said last week that it had estimated to raise non-tax revenue of Rs1,600 crore from auction of FM phase III license, but this auction have not materialised so far in this financial year, ending 31 March 2012.

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