|
|||||
|
|
|||||
|
|||||
|
30-3-2006
Notification No. 93/2006
In
exercise of the powers conferred by section 295 read with
clause (48) of section 2 and clause (iiia) of
sub-section (1) of
section 36 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 (3rd
Amendment) Rules, 2006.
2.
In the Income-tax
Rules, 1962,-
(a) after rule 8A, the following rules
shall be inserted, namely:-
'Guidelines for notification of zero coupon bond.
8B
(1)
An application by an
infrastructure capital company or infrastructure capital
fund or a public sector company for notification under
clause (48) of section 2 of any
zero coupon bond
proposed to be issued by it shall be made in Form No. 5B at
least three months before the date of issue of such bond:
Provided that an application shall
not be made for notification of a bond to be
issued after two
financial years following the financial year in which the
application is
made.
(2) Every application, under sub-rule (1),
shall be accompanied by the following
documents, namely:-
(i)
where the application is made by any infrastructural capital
company or a public sector company, being a government
company as defined in
section 617 of the Companies Act, 1956 (1 of 1956), a copy of
certificate of
incorporation under the Companies Act, 1956 (1 of 1956);
(ii)
where the application is made by any infrastructure capital
fund, a copy of
the trust deed registered under the provisions of the
Registration Act,
1908 (16 of 1908);
(iii) where the application is made by a
public sector company, being any corporation, established by
or under any Central or State or Provincial
Act, a copy of the
relevant Act;
(3)
The Central Government, while specifying a zero coupon bond by
notification in the
Official Gazette shall satisfy itself that the following
conditions are fulfilled,
namely:-
(i)
the period of life of the bond is not less than ten years and
not more than
twenty years;
(ii)
the infrastructure capital company or infrastructure capital
fund or public
sector company proposing to issue a zero coupon bond has an
investment grade rating from at least two credit rating
agencies registered under sub-section (1A) of section
12 of the Securities and
Exchange Board of India Act, 1992 (15 of 1992);
(iii)
necessary arrangement has been made by the infrastructure
capital company or
infrastructure capital fund or public sector company for
listing the zero
coupon bond in a recognised stock exchange in India;
(iv) where the application is made by the
infrastructural capital company or
infrastructure capital
fund, such company or fund shall furnish along with
the application an
undertaking that the money realised on issue of the
zero coupon bond shall be
invested by it in the following manner,
namely:-
(i)
twenty-five per cent, or more of such realisation before the
end of the financial year immediately following the
financial year in which
the bond is issued;
(ii) the balance of such realization within
a period of four financial years immediately following the
financial year in which the bond is issued;
(v)
where the application is made by a pubic sector company, such
company shall
furnish along with the application an undertaking that the
money realised on issue of the zero coupon bond shall
be invested or utilised
by it in the following manner, namely:-
(i)
fifteen per cent, or more of such realisation before the end
of the financial year immediately following the
financial year in which
the bond is issued;
(ii)
the balance of such realisation within a period of six
financial years
immediately following the financial year in
which the bond is
issued;
(4)
The Central
Government, after having satisfied itself about fulfilling of
the conditions
referred to in sub-rule (1), sub-rule (2), and sub-rule (3)
shall specify the
bond, by notification in the Official Gazette, giving therein,
inter-alia, the following
particulars, namely:-
(a)
name of the bond;
(b)
period of life of the bond;
(c)
the time schedule of the issue of the bond;
(d)
the amount to be paid on maturity or redemption of the bond;
(e)
the discount;
(f)
the number of bonds to be issued;
(5) The
Central Government may, if the applicant fails to fulfil the
conditions referred
to in sub-rule (1)
or sub-rule (2) or sub-rule (3), reject the application for
notification after giving an opportunity of being heard to the
infrastructure capital
company or
infrastructure capital fund or public sector company, as the
case may be.
(6)
Every infrastructure capital company or infrastructure capital
fund or public
sector company shall submit within two months from the end of
each financial year
referred to in sub-clause
(i) or sub-clause (ii) of clause (iv) of sub-rule (3), or as
the case may be,
in sub-clause (i) or sub-clause (ii) of clause (v) of sub-rule
(3), a certificate
from an accountant as defined in the Explanation to
sub-section (2) of
section 288, specifying
the amount invested in each year.
(7) The Central Government shall have the
power to withdraw the notification if the applicant fails to
fulfil any of the conditions referred to in sub-rule (3) or
sub-rule (6).
Explanation. -
For the purpose of this rule, the expressions "discount" and
"period of life
of the bond" shall have the same meanings respectively
assigned to them in clause (i) and clause (ii) of the
Explanation to clause (iiia) of sub-section
(1)
of section 36.
Computation of pro-rata amount of discount on a zero coupon
bond for the purpose of
clause (iiia) of
sub-section (1) of section 36.
8C.
For the purposes of clause (iiia) of sub-section
(1)
of section 36, the pro-rata
amount of discount on a
zero coupon bond shall be computed in the following
manner, namely:-
(a)
the period of life of the bond shall be converted into number
of calendar months
and, for this purpose, where the calendar month in which the
bond is issued or
the bond matures or is redeemed contains a part of a
calendar month then, if
such part is fifteen days or more than fifteen
days, it shall be
increased to one calendar month and if such part is less than
fifteen days it shall be ignored;
(b)
the amount of discount shall be divided by the number of
calendar months
determined in accordance with clause (a);
(c)
where one or more than one calendar month out of calendar
months determined
in accordance with clause (a) is or are included
in a previous year, the
amount determined in accordance with
clause (b) shall be
multiplied by the number of calendar months so included and
the amount so arrived at shall be taken to be the pro-rata
amount of discount for that previous year.'
(b)
In Appendix-ll, after Form No. 5A, the following Form shall be
inserted, namely:
'FORM NO. 5B
[See rule 8B]
Application for notification of a zero coupon bond under
clause (48) of section 2 of
the
Income-tax Act, 1961
1. Name
of the applicant
2. Category (Please tick one):
Infrastructure capital company/
Infrastructure capital
fund/ Public sector
company
3.
Address of the applicant
4.
Permanent
Account Number of the applicant
5.
Assessing Officer under whose jurisdiction the
6.
Date of
incorporation/ registration (Please
7.
Objects of
the applicant (Please enclose copy
(a)
main
objects
(b)
ancillary
objects
8.
The total
number of bonds proposed to be
9.
Amount for
which the bond is proposed to be
10.
Amount
payable on maturity/ redemption of the
11.
Discount
[(10)-(9)]
12.
Period of
life of the bond
13.
The period
during which the bonds are to be
14.
The
objects of issue of the bonds
15.
In case of
infrastructure capital company or
(a)
the name of
enterprise or enterprises
(b)
nature of
business carried on by the
enterprise or enterprises
or undertaking or
undertakings referred to
in (a);
(c)
whether the
enterprise or enterprisesor
undertaking or undertakings referredto
in (a) is, for the time being,
approved under clause
(23G) ofsection 10, if yes, please attach copy
(d)
whether
approval referred to in (c) isfor
any particular amount of
investment/ cost of
project, if yes,
16.
In case of public sector
company-
(a)
the nature
of business;
(b)in
case investment is proposed to be
made in the business of
the company,
please furnish details thereof;
(c)
in case
investment is proposed to bemade with another public sector
company or public
sector companies or enterprise or enterprises or
undertaking or
undertakings, please
furnish the details
thereof;
(d)
nature of
business carried on by the
public sector company or
public sector companies or the enterprise or
enterprises or
undertaking or
undertakings referred to in (c);
(e)
whether
the enterprise or enterprises
or undertaking or
undertakings referred to in (c) is, for the time being,
approved under
clause (23G) of section 10, if
yes, please attach copy
of the approval;
(f)
whether
approval referred to in (e) is
for any particular amount
of investment/ cost
of project, if yes,
furnish the details
thereof.
17.
Location of
project/projects in which
investment is proposed to
be made
18.
Approximate
year wise investment required to
be made
19.
Sources of
investment (other than the bonds),
if any.
20.
Schedule of
development of project/ projects
(a)
planned
date of commencement.
(b)
planned
date of commencement of
operations of the
project
21.
Details of" management
responsible for
execution of project:
(a)
name of directors, trustees, etc., with/their'.experience,
qualifications and
. performance.
(b) name of other key
personnel with their
qualification and experience.
| (c) organisational
structure, (d)
particulars of Asset Management
Company in case of a
fund.
22.
Copy of the project
report, if any.
(Write "not applicable' against the column or columns which
are not relevant to the applicant) -
I certify that the information furnished
above is true to the best of my knowledge and belief. I
undertake on behalf of____________________(write
the name of the
applicant) that the
[F.NO.142/2672005-TPL]
|
|||||
|
Read our
disclaimer and
privacy policy |
|||||
