Save Tax through Infrastructure Bonds

Sec 80CCF Infrastructure Bonds:

Since last Financial year these have emerged as an addtional tax saving opportunity for the investors. With a secured format of debentures and a guaranteed interest rate these can be very useful tool for tax saving for the persons in tax slab of 10% or more.

Tax Benefit: The benefit under section 80 CCF is limited to Rs.20000 in a year & this is over and above the 80C limit of Rs.1 lac.

Following are the details of currently available Infrastrure Bond issues.

1. IFCI Limited – Infra Bonds.

Nature: Unsecured, Redeemable, Non Convertible

Tenure: 10 years / 15 years.

Options: Cumulative, Annual

Coupon rate: 8.50% / 8.75%

Buy Back facility after: 5/7/10/12 years.

Face Value: Rs. 5000 per Bond.

Mode of Holding: Physical / Demat.

Issue closes: November 14, 2011

2. Power Finance Corporation Limited. (A Govt. of India Undertaking)

Nature: Secured, Redeemable, Non Convertible Debentures

Tenure: 10 years / 15 years.

Options: Cumulative, Annual

Coupon rate: 8.50% / 8.75%

Buy Back facility after: 5/7 years.

Face Value: Rs. 5000 per Bond.

Rating: AAA/Stable from CRISIL and “AAA with Stable outlook” from ICRA

Mode of Holding: Physical / Demat.

Payment in favour of: “PFC – Public Bond Issue A/c”

Issue closes: November 4, 2011


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