Tax free bond specification: REC bond exemption conditioned on holder registration with the issuer. The Central Government specifies 10.5 per cent tax free REC Bonds-2001 (XXVIth series) as exempt under item (h) of sub clause (iv) of clause (15) of section 10 of the Income tax Act, identifying distinctive bond ranges, face values and aggregate amount issued by Rural Electrification Corporation Limited, and conditions the admissibility of the exemption on the holder registering his name and holding with the issuing corporation.