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.