Government has allowed National Highways Authority of India (NHAI) to issue Tax Free Infrastructure Bonds aggregating to Rs 24000 crore and Capital Gain Tax Exemption Bonds aggregating to Rs 4000 crore in the financial year 2015-16.
Ministry of Finance, Department of Economic Affairs has conveyed their in-principle approval for issue of Tax Free Infrastructure Bonds on April 17.
However, no such concurrence is required for issue of Capital Gain Tax Exemption Bonds.
Tax Free Infrastructure Bonds to be issued by NHAI is likely to be having tax benefits under section 10(15) (iv) (h) of Income Tax Act 1961.
This information was given by Minister of State for Ministry of Road Transport & Highways, Shri Pon Radhakrishnan in a written reply in the Lok Sabha today.