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Nabard offers 100% tax exemption
April 01, 2004 07:30 IST
The National Bank for Agriculture and Rural Development, a premier institution for agriculture financing, would be giving 100 per cent tax exemption on capital gains if they were invested in capital gains bond issued by it.
The exemption was available under section 54 EC of Income Tax Act 1961, chief general manager, V Ramakrishna Rao said in a statement in Jaipur on Wednesday.
Nabard, having Rs 20,738 crore (Rs 207.38 billion) of its own funds was a financially strong with 39.05 per cent of capital adequacy ratio and almost negligible non-performing assets at 0.0017 per cent, he said.
The capital gains bonds issue, which has enabled Nabard to mobilise around Rs 6,000 crore (Rs 60 billion) cumulatively so far, would reopen fresh subscriptions from April 1 at 5 per cent per annum, he said.