Infrastructure Development Finance Company Ltd (IDFC) has informed the share market (BSE/NSE) that the Committee of Directors, at its meeting held on 4th January 2011 have decided to float its second batch of tax-saving infrastructure bonds on 17th January 2011 and these bonds will be available for subscription upto 4th February 2011.
These bonds are long term infrastructure bonds of face value of Rs 5,000 each, in the nature of secured, redeemable, non-convertible debentures, having benefits under Section 80 CCF of the income Tax Act, 1961. The company aims to mop up Rs 2929 crore through these long-term bonds at the peak of the tax-saving season. Earlier IDFC raised Rs 436 crore from the first issue , which closed on 25th October 2010.
According to the Section 80 CCF of the income Tax, individuals can invest up to Rs 20,000 in these bonds in addition to the Rs 1 lakh limit available under Sections 80C, 80CCC and 80CCD such as life insurance premium, provident fund, PPF and National Savings Certificate.
The maximum amount of income not chargeable to tax in case of individuals (other than women assesses and senior citizens) and HUFs is Rs 1,60,000. In the case of women, the limit is Rs 1,90, 000 and in the case of senior citizens, it is Rs 2,40,000 for FY10. Hence those guys whose income exceeds these slabs can go for these bonds.
Tax Benefits :- Under section 80CCF of the Income Tax Act, Rs 20,000 per annum paid or deposited as subscription to long term infrastructure bonds shall be deducted in computing the taxable income. This is over and above Rs 1,00,000 tax benefit available under section 80C, 80CCC and 80CCD.
Benefits as per Tax slabs :-
1. Slab 10.3% : Rs 2,060
2. Slab 20.6% : Rs 4,180
3. Slab 30.9% : Rs 6,180
Pros:- The limit of Rs 20,000 per annum is in addition to Sections 80C, 80CCC and 80CCD. Hence, it is advisable to consider applying in this issue.
Cons:- The bonds are locked in for five years, so there is no exit in case you need the money midway which restricts liquidity.
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{ 20 comments… read them below or add one }
I am planning to invest in infrastructure bonds for tax savings under 80CCF.
Kindly furnish the details for investment
thanks
Sankar
Dear Sir,
I wish to apply for this bond in certificate format. How do I do this? and can we get exemption on the certificate.
Sankar: IDFC infrastructure bonds are available in 2 modes, one with an annual payament option and another with cumulative option. Both options offer an interest rate of 8% and have a minimum lock in period of 5 years. If you require yearly payouts, choose option A, else if you can choose option B. For your conveinience I have elaborated below payout structure under the 2 options for a sum of Rs.10,000:
Option 1
Investment: Rs. 10,000/-
Yearly Payout: Rs. 800/- every year
Value of Bond after 5 years: Rs. 5000/-
Value of Bond after 10 years: Rs. 5000/-
Option 2
Investment: Rs. 10,000/-
Yearly Payout: —nil—
Value of Bond after 5 years: Rs. 14,693/-
Value of Bond after 10 years: Rs. 21589/-
In both cases tax exemption availed will be Rs. 10,000/-.
I hope the above will satisfy most of your queries.
Vikramjit: You can recieve the bonds in physical format by following these instructions:
Do not enter any details in the “Depository Participant” section of the application blank and tick mark the “BONDS IN PHYSICAL FORMAT” box.
After that submit these documents along with the application:
Self attested copies of
PAN card
Address Proof
Cancelled cheque from your account.
In this way you will recieve a bond certificate from IDFC.
For purchase or any other query, feel free to contact:
Inderjeet Bhatnagar
Goldleaf Investments
(022) 28958733
how i can apply online for tax savings under 80CCF bond.
Hi Samir,,
For applying online in 80CCF Bonds, you should have an account with any one of the following online trading firms like ….
ICICIDirect
ShareKhan
Indiabulls
5Paisa
Motilal Oswal
HDFC
Reliance Money
IDBIPaisaBuilder
Religare
Geojit
I want to purchase Rs. 20000 Infrastucture Bond immediately but I am not getting tme.
So, it is possible to purchase this Infrastructure Bond through my wife, moreover I have sent my wife to purchase this Bond
Niranjan: You can send anyone to procure the form and submit it later, however your details such as Name, DP ID and your Account No. must be submitted along with the form signed by YOU. In that case it should’nt pose any problems.
If applying online, it should be from YOUR demat account.
For purchase or any other query, feel free to contact:
Inderjeet Bhatnagar
Goldleaf Investments
(022) 28958733
Thanks Inderjeet for sharing this info over here.
how & where i can have the idfc mf bond physically. please give me the details of the idfc mf purchasing center in H.P.
Hi Rakesh,
You can recieve the bonds in physical format by following these instructions:
Do not enter any details in the “Depository Participant” section of the application blank and tick mark the “BONDS IN PHYSICAL FORMAT” box.
After that submit these documents along with the application:
Self attested copies of
PAN card
Address Proof
Cancelled cheque from your account.
In this way you will recieve a physical bond certificate from IDFC.
Thanks to Inderjeet for sharing this info over here.
Please let me know the rate of interest and locking period etc. alongwith collection centre in East Delhi/Noida
I interested to invest my money (20,000) in a tax -savings bond. Pls give me the details. Which bond is now avilable?
If I like to purchase a bond, what type of documents are required. Is the time already over?
Is it possible that I can purchase the bonds in my wife’s Dmat account in her sole name and claim the tax rebate for myself ? My wife is a housewife with no source of income.
Vishnu Jaiswal
I wanna invest 20K into IIFCL Infrastructure Bonds.
Plz any one geniue agent contact me asap
i AM ALSO SEARCHING THE ANSWER FOR THIS QUESTION. kINDLY LET ME KNOW IF ANYBODY CAN HELP ME IN THIS REGARD
i am planning this year take infrastucture bond
Plz give Contact no of jammu,
Rakesh bhat
09419287149
For Investing in Infrastructure Bonds – Contact – Amit Surpuriya – 9850873688 – Pune
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Mutual Funds | 80CCF Infrastructure Bond | 54EC Capital Gain Bonds | Debentures | Medi-Claim | IPO
Is it possible that I can purchase the bonds in my wife’s Dmat account in her sole name and claim the tax rebate for myself ? My wife is a housewife with no source of income.
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