Infrastructure Bonds

Long Term Infrastructure Bonds are issued by Infrastructure Finance Companies.

Government of India is offering Tax Benefit to Investors to facilitate growth in that sector.

Investors can avail Tax Benefit up to Rs 20,000/ u/s 80CCF of the Income tax Act,1961.

This is besides the 1,00,000/- u/s 80C of IT Act 1961 and these Infra Bonds are the only product eligible under this section.

You save Rs  6180/ on Tax if you are in the highest tax bracket on an investment of Rs 20,000/.

Normally the Interest rate is around 8.25% to 9% . The term is 7 years to 15 years with option to withdraw after 5years.

Bonds will be traded in the exchanges after the initial lock in period of 5 years.

You have options to hold in  Demat or Physical form.

The interest is taxable and is to be included under Other Sources of Income as Interest Income.

Expected Issues:

IDFC / IFCI / LIC / L&T / PFC / IIFL / REC

IFCI is open Now.

HAPPY INVESTING