REC (Rural Electrification Corporation Limited) is a leading public Infrastructure Finance Company in India’s power sector. The company finances and promotes rural electrification projects across India.
REC is the latest one to bring the tax savings infra bonds (80 CCF). REC is offering Tax Savings bonds u/s 80 CCF.
Issue opens: 19th December 2011 & Closes on 10th February 2012.
Details:
| Option 1 | Option 2 | Option 3 | Option 4 | |
| Face Value | Rs. 5000/- | Rs. 5000/- | Rs. 5000/- | Rs. 5000/- |
| Maturity | 10 Years | 10 Years | 15 Years | 15 Years |
| Buy Back Option | At the end of 5th year | At the end of 5th year | At the end of 7th year | At the end of 7th year |
| Interest Rate | 8.95% | 8.95% | 9.15% | 9.15% |
| Interest Payment | Cumulative | Annual | Cumulative | Annual |
Registrars: Beetal Financial & Computer Services Ltd.
Eligible Investors: Resident Indian Individuals (Major) and HUF through Karta of the HUF.
Investologic Review:
- Interest paid on REC is slightly lower than that was paid on IDFC & L&T.
- There are quite a few more tax savings bonds to come in the next couple of months. This issue is open till 10th Feb, one can wait for an issue which would pay a higher interest rate than currently offered by REC.
- Compounded interest payment option is better than annual as capital gain taxes are lower than tax on tax on interest payment.
- Compounded options help in savings as well
Also do check out our review on NHAI Tax Free bond.
You can get in tough with Harish for REC Forms. Email id – harish@investologic.com
{ 2 comments… read them below or add one }
pl clarify what is trench-I and trench-II
pl send the link to download application formREC 80 CCF infrastructure bonds 2011-12
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