[www.keralites.net] Avail Tax Benefits U/s 80CCF - IDFC Long-Term Infrastructure Bond

 

Avail Tax Benefits U/s 80CCF -  IDFC Long-Term Infrastructure Bond

IDFC Long-term Infrastructure Bonds – Tranche I is now open for subscription upto 16th December, 2011 and offering an annual interest rate of 9% for a period of 10 years with an option to buy back after five years. The tax payers can avail the additional Rs 20,000 deduction from their taxable income under section 80CCF of the Income Tax Act 1961 by way of investing in this long-term infrastructure bond.  This additional Rs. 20,000 deduction from the total income is separate from Rs. 100, 000 deduction available U/s 80C. This bond will be listed in NSC and BSE.  Resident Indian Individuals and HUFs are eligible for investing in this bond but minors and other categories of investors are not eligible.  The main advantages of this bond are, you can block your money for a long period of 10 years at a higher interest rate of 9.00% plus tax benefits.   As per RBI report the inflation is likely to come down by the end of December at least for a short to medium period.  Once the inflation is under control, naturally the interest rates will also come down. 

Options for Subscription	I		II
Frequency of Interest Payment	Annual		Cumulative
Yield on Maturity	9%		9% (Compounded Annually)
Tenor	10 years from the deemed date of allotment		10 years from the deemed date of allotment
Buyback option	Yes		Yes
Buyback Dates	Date falling 5 years and one day from the Deemed Date of Allotment
Lock-in Period	Five years from the Deemed Date of Allotment
Maturity Date	10 years from the Deemed Date of Allotment
Min Investment & Face Value	Rs 5000 per bond
Investment in Multiples of	Rs 5000 per bond
Tax Benefit	Avail the additional Rs 20,000 deduction under section 80CCF of the Income-tax Act (apart from the Rs one lakh deduction under section 80C)
Buyback Amount	Rs. 5,000 per Tranche 1 Bond	Rs. 7,695 per Tranche 1 Bond.
Maturity Amount	Rs. 5,000 per Tranche 1 Bond	Rs. 11,840 per Tranche 1 Bond
Nature of the Bond	Secured
Security Cover	1.0 time the outstanding Tranche I Bonds at any point of time.
Credit Rating	Assigned "(ICRA)AAA" from ICRA and "Fitch AAA(ind)" from Fitch
Issuance & Trading	Bonds shall be issued both in dematerialized form and physical form. However, trading allowed only in dematerialized mode after the expiry of lock-in period of 5 years

For more information about this bond please contact your broker or contact the company representative directly.  Please note that, this is not a buy recommendation

Best Regards

Prakash Nair

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www.keralites.net

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