The concept of Infrastructure Bonds was coined last fiscal by RBI through a circular on February 12, 2010 through which they decided to introduce a category of NBFC as “Infrastructure Finance Companies” (IFC).
Investment in Infrastructure Bonds issued by IFC are exempt from tax up to Rs 20,000 under section 80CCF of income tax act. This exemption is in addition to Rs 1,00,000 exemption under section 80C.
Benefits: By investing in these bonds, you can get a deduction of Rs 20,000 over and above the Rs 1 lakh that is generally allowed. (u/s 80 CCF)
Returns: Most of these bonds provide with 9% annual interest. Offered in both cumulative and non-cumulative mode.
Companies which offer these bonds:
*We will keep you updated with more bonds which come in this fiscal.
If you need any help with infra bonds or if you have any query related to these bonds just drop a comment below and we will help you out.