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Case law › Notifications › 2010 › Notification No. 7
Notification 3 February 2010

Notification No. 7

Section 10(15)(iv)(h) of the Income-tax Act, 1961 – Exemption – Interest on bonds/debentures – Notified bonds or debentures of public sector companies

What this is

Notification No. 7 was published on 3 February 2010. Its subject is Section 10(15)(iv)(h) of the Income-tax Act, 1961 – Exemption – Interest on bonds/debentures – Notified bonds or debentures of public sector companies.

This grants an exemption or a relief under a provision that allows one. Read the conditions attached: an exemption notification is construed strictly, and a condition missed is the exemption lost.

What it does

In exercise of the powers under item (h) of sub-clause (iv) of clause (15) of section 10 of the Income-tax Act, 1961, the Central Government authorises the Indian Railway Finance Corporation to issue, during financial year 2009-10, tax free secured, redeemable, non-convertible Railway Bonds. The denomination is Rs. 1,000 each in the case of a public issue and Rs. 1,00,000 each in other cases, and the issue may aggregate to five thousand crore rupees, carrying interest in the range of 6.50 per cent to 7.25 per cent per annum depending on the size and tenor of the tranche. A proviso makes the benefit admissible only if the holder of the bonds registers his or her name and holding with the Corporation.

Who it reaches

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.
Under the 1961 ActNow
s.10s.11, s.19

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

Section 10(15)(iv)(h) of the Income-tax Act, 1961 – Exemption – Interest on bonds/debentures – Notified bonds or debentures of public sector companies

Notification No. 07/2010 [F.No.178/126/2009-ITA.I], dated 3-2-2010

In exercise of the powers conferred by item (h) of sub-clause (iv) of clause (15) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby authorizes Indian Railway Finance Corporation(IRFC) to issue, during Financial Year 2009-10, tax free secured, redeemable, non-convertible Railway Bonds of Rs. 1,000 each in case of public issue and Rs. 1,00,000 each in other cases, aggregating to an amount of five thousand crore rupees only, carrying an interest rate in the range of 6.50% to 7.25% per annum, depending upon the size and tenor of a tranche:

Provided that the benefit under the said item shall be admissible only if the holder of such bonds registers his or her name and the holding with the said Corporation.

From when

issues during financial year 2009-10.

What to watch

Where you meet it

In a return of income where interest on these bonds is claimed exempt under section 10(15)(iv)(h), and in the Corporation's register of bondholders relied on to support the claim.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

← Notification No. 8  ·  Notification No. 6 →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.