Infrastructure Bonds
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:
- IDFC
- L&T
- SBI
- REC
- IIFCL
Past Offerings:
*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.
{ 8 comments… read them below or add one }
i’m waiting for sbi infrastructure bonds what is the latest and when these bonds will be available. . .
SBI dones’t come up with an infra bond as it is a banking institution and not an infra financing company. Last year SBI came up with it’s bond. If they come up with more bonds this year I will keep you updated on this blog.
thanks chirag these bonds also have 80cc (20000k additional saving) benefit pl clarify . .
No Those bonds don’t provide benefit u/s 80CCF. We have mentioned at the places which provide benefits under that section.
Currently open infra bonds issues which provide additional benefits u/s 80CCF.
REC
SREI
IDFC – Review coming shortly!
idfc review coming shortly that’s mean we can wait for this . . . M i right. . Coz idfc has better credit rating and interest rates too. . .
All the current bond issues are good. Though I feel I need to come up with a comparison story!
very good idea . . . .Pl do soon. . .
does pfc bonds provide 20k additional benifit i think it is best among present offers what is your openion
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