The very first Tax Saving Infrastructure Bond was launched by IFCI this financial year 2011-12. It was available for subscription on 21st Sep. 2011 to 14th Nov. 2011. Now the company (IFCI) have come up with next round of its infrastructure bonds. These bonds are named as Tax Saving Infrastructure Bonds Series-4 and will be available for subscription on 30th Nov.2011 with slightly better interest rates than current IDFC and L&T issues or any infrastructure bond floated this year.
Issue Open Date : 30th Nov. 2011.
Issue Close Date :16th Jan. 2012.
For further information, please visit : IFCI Site
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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