HIGHLIGHTS OF TAX BENEFITS

• 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 authorizes HUDCO to issue during the FY 2013-14, Tax Free, Secured, Redeemable, Nonconvertible Bonds.
•  The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961.
• There will be no deduction of tax at source from the interest, which accrues to the bondholders in these bonds irrespective of the amount of the interest or the status of the investors.
• Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957