Tax Saving Bonds under Section 80 CCF : IFCI Infra Bonds Series-4

by khalid on 11/12/2011 · 4 comments

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.

Stay tuned to BelltheBull Blog for more on Tax Saving Long Term Infrastructure Bonds !

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{ 3 comments… read them below or add one }

vikas December 19, 2011

Hi , Can some one guide me which is batter to intevest in L&T and IFCI.
LT is private company but having batter rating and IFCI is govt but having less lrating.

thanks

Reply

Vishwnath Rao December 23, 2011

Hi,
For the details you desire, please visit the blog http://www.infrastcructurebond.in where in you can refer all the details in an article written “How to Buy IFCI Infrasctructure Bonds 2011-2012”.
Also in my opinion when one compares, on a one to basis, IFCI & L&T offerings for different Tax slabs, the Effective Rate of Return for IFCI is better than that of L & T, when all the Tax Slabs of 10.3 %, 20.6% & 30.9 % are considered.
The Offering by IFCI closes on 16th Jan 2012.
Regards,
VR

Reply

Amit Surpuriya January 5, 2012

FOR APPLICATION OF ALL INFRASTRUCTURE BONDS – CONTACT – AMIT SURPURIYA – 9850873688 – PUNE

KSHITIJ FINANCIAL SERVICES
MUTUAL FUNDS| BONDS | INFRASTRUCTURE BOND | 54 EC CAPITAL GAIN BONDS | COMPANY FIXED DEPOSITS |DEBENTURES

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