DFI bond subscribers to get tax reimbursement from Centre's Rs 5K cr grant

The Cabinet on Tue­s­day approved the Bill to create the government-promoted DFI

Topics
Development finance institutions | tax-free bonds

Nikunj Ohri & Shrimi Choudhary  |  New Delhi 

The government-owned development finance institution (DFI) will not issue tax-free bonds, but subscribers will get reimbursement for the taxes paid from a Rs 5,000-crore grant from the Centre. "Instead of allowing the DFI to raise money through tax-saving instruments, the Bill provides that the tax element will get neutralised through this corpus," said a senior finance ministry official.

The Cabinet on Tuesday approved the Bill to create the government-promoted DFI. Explaining the contours, another official said the DFI would compensate for the tax outgo of ...

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First Published: Fri, March 19 2021. 06:10 IST
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