Tax Saving Bonds under Section 80 CCF : PFC Infrastructure Bonds

by khalid on 13/02/2011 · 23 comments

Power Finance Corporation plans to raise Rs 6000 crores through tax-free infrastructure bonds in the current financial year. The bonds have a face value of Rs 5,000 with 10 years maturity. There is a lock-in period of 5 years from the date of allotment. Earlier, IFCI raised about Rs 100 crore, including a greenshoe option of Rs 50 crore. Power Finance Corporation has filed a draft prospectus with the SEBI to float long term infrastructure bonds.

Issue Details :-
Issue Period : February 2011 to March 2011
Rating : “unrated” by CRISIL
Issue Size : Rs 6000 crore .
Face Value : Rs 5000 per Bond
Subscription Amount : Minimum 1 bonds
Lock-in Period : 5 years
Listing : NSE/BSE

Book Running Lead Managers for this issue are ICICI securities Ltd and SBI Capital Markets Ltd.

Registrar for this issue is Karvy Computershare

The funds raised through this issue will be utilised towards “infrastructure lending” as defined by the RBI in the regulations issued by it from time to time, after meeting the expenditures of, and related to the issue.

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.

PFC officials have said they will float the bonds in 2 tranches. The first tranche of about Rs 2,000 crore in February 2011 and the balance in March 2011 through these longterm bonds.

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{ 21 comments… read them below or add one }

venkat February 26, 2011

if any body required Infrastructure Bonds processing, please call me at 9241545354 (for
bangalore only).

Reply

Shiv February 26, 2011

PFC Infra Bonds & L&T Infra Bonds are offering the highest interest rates (@8.3%) till date by any “Infrastructure Finance Status” company. I think a person in the 30.9% or 20.6% tax bracket should go for these bonds as they are going to save Rs. 6,180/- & Rs. 4,120/- tax on the income. The additional tax deduction of Rs. 20,000/- u/s. 80CCF is over & above Rs. 1,00,000/- deduction u/s. 80C.

To invest in PFC Infrastructure Bonds, L&T Infrastructure Bonds, IDFC Infrastructure Bonds or for any info on Tax Savings u/s. 80C / 80CCF Call/SMS 9811797407 (Delhi, Gurgaon & Noida).

Reply

T.BALA VISWANADHAM March 1, 2011

sir/madam, if any person willing to invest in infra bonds to avail tax rebate u/s 80ccf, pl call me VISWANADHAM-9247713737,VIJAYAWADA.

Reply

Sandeep Sharma March 5, 2011

Dear Sir,

I want to bring PFC Long infra structure bonds. Please suggest me about availabilty of form or any contact number.

Thanks
Sandeep Sharma

Reply

shiv March 9, 2011

Superfine bonds
please take this for tax saving

Reply

shiv shankar March 11, 2011

Sir,
Please send me Bihar collection centre /bank for purching PFC bonds.

Reply

khalid March 11, 2011

Hi shiv shankar,

You may get the application form from ICICI securities Ltd, SBI Capital Markets Ltd. or Karvy Computershare offices in your city.

Thanks for dropping by.

Reply

Aashish March 18, 2011

From where we can get PFC Infrastructure bond in Delhi r these available in at banks or with share brokers? please advice.

Thanks

Reply

Srinithya November 22, 2011

For investing in infrastructure bonds (CHENNAI) location you can contact @ 98402 88233

Reply

venkat March 19, 2011

if any body required Infrastructure Bonds processing, please call me at 9241545354 (for bangalore only).

Reply

venkatesha March 23, 2011

I need to buy infrastructure bond, please provide me your contact no or address to have application and get it done immediately.

thanks and regards

Venkatsha.

Reply

PUSHPENDER GUPTA March 28, 2011

sir, iwant to buy 80ccf bonds for my tax saving purpose,
kindly help

Reply

Shankargouda Mattimani May 4, 2011

I applied for 2 bonds @ 5000 each vide application No
3958790 dated 21.03.2011.But regret to inform you that
still I have not received bond certificate.Pls request you
to send as early as possible.

Reply

khalid May 4, 2011

Hi Shankargouda,

I understand your problem but this not the proper place for complaining, you have to lodge your complain with the Registrar for this issue which is Karvy Computershare.

Hope you got the point.

Thanks for your visit to this blog, keep coming for similar informations.

khalid

Reply

Fine Shine India October 21, 2011

Now you can save Rs. 7,880/- in this year by investing Rs.20,000/- in the Infrastructure Bond under section 80CCF, for free consultation and door step services for the same you can feel free contact at Mob. 9716300093, 9311099558. E.mail. : fine_shine_india@yahoo.in aksingh3867@gmail.com

Reply

krishna kumar November 6, 2011

sir
How can i get the best infra bonds, so that i can get well return on it as well as tax rebates.
plz suggest me.

Reply

venkat November 22, 2011

For Infrastructure Bonds processing, please call me at 9241545354 (for bangalore only)

Reply

Shiv Kukreja November 22, 2011

To invest in IDFC Infrastructure Bonds or L&T Infrastructure Bonds or for more info on any 80CCF Infra Bond issues, Call/SMS 9811797407 (Gurgaon, Delhi or Noida).

Reply

venkat January 5, 2012

please call me at 9241545354 (for bangalore only) for Infrastructure Bonds processing,

Reply

Amit Surpuriya January 6, 2012

For Investing & Application forms of Infrastructure Bonds – Contact – Amit Surpuriya – 9850873688 – Pune

KSHITIJ FINANCIAL SERVICES
Mutual Fund | Tax Planning | Infrastructure Bond | 54EC Capital Gain Bond | Medi-Claim | Company Fixed Deposit

Reply

venkat January 13, 2012

For Infra Bonds processing, please call or contact or phone me at 9241545354 (for bangalore only).

Reply

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