The below links provide you details about current tax saving infrastructure bond open issues.
http://lastbull.com/rec-infrastructure-bonds-fy-2010-%E2%80%93-2011/
http://lastbull.com/idfc-series-ii-infra-bonds/
IFCI (The Industrial Finance Corporation of India) is the first company to come up with infrastructure bonds eligible for tax benefit under section 80CCF of the Income Tax act, 1961 for long term Infrastructure Bonds. As you know for the FY 2010 -2011 there is a tax deduction for an additional maximum amount of Rs 20,000 over and above the 1 Lakh limit available under section 80C.
Before taking a decision to invest in infrastructure bonds, please read the below to understand if you would really get benefit out of it.
Investing in Infrastructure bonds
To get the tax deduction the infrastructure bond should be of a minimum tenure of 10 Years and the minimum lock in period of the investment is 5 years. Buy-back (by the issuer of bonds) would be available only on particular dates after the lock in period i.e. 5 years. Please note that these tax rebate bonds can only be issued by certain government and RBI approved entities like LIC, IFCI, Infrastructure Development Finance Company and NBFCs classified by RBI.
The tax rebate on infrastructure bonds is not introduced for the first time by the government. Earlier it was there for a max limit of Rs 30,000 and was discontinued in later years.
Sathish Emmadi
Sathish Emmadi is a co-founder & editor at Lastbull.com. He is presently working in IT for one of the world’s top mutual fund companies. Handled multiple projects in BFSI (Banking,Financial Services and Insurance) domain. An Engineering Graduate from NITW.
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{ 37 comments… read them below or add one }
I want infrastructure bonds for tax saving. Please give me details.
Thanking you
sir, i want to purchased infrastructure bonds for tax saving pls. suggest me from where i can purchase.
sir, i want to purchased infrastructure bonds for tax saving pls. suggest me from where i can purchase.
sir, i want to purchased infrastructure bonds for tax saving pls. suggest me from where i can purchase.
Hi CK Singh,
No infrastructure bonds are available at present. I will update if there are any in the future.
There is IFCI infrastructure bond series-II is now available till 30th Dec 2010.
IFCI infrastructure bond is closing on december 31 2010. It is a very good opportunity to claim tax exemption on additional Rs 20,000. Infra bond is better option than SIP for 5 years.
I didn’t notice IFCI series II infra bonds. Whenever I read about this, I thought they were earlier Series I infra bonds. Thanks for all of those who pointed this.
Sir,
Pl inform the list of Infrastructure bonds available for investment – as on 01.01.2011.
Thanks,
KRISHNA MOHAN.
9885681366
Pl inform the list of Infrastructure bonds available for investment – as on 01.01.2011
What is the last dates for Infrastructure Bonds with details
Sir,
Kindly inform the infrastructure bonds as a tax saving instrument available in january 2011.
Sir, pls provide the available infrastructure bond in this month ie.January 2011. I am looking out for LIC or L&T. if these two co. is not there then who else providing the same.
Sir
Pl inform me about infrastructure bond for tax saving available in Jan,2011
Kindly inform the infrastructure bonds as a tax saving instrument available at present.
Are there any long term infra bonds available right now in the market. Kindly advise
Hi Himanshu,
There are 2 issues available at the moment.
REC Infra Bonds: http://lastbull.com/rec-infrastructure-bonds-fy-2010-%E2%80%93-2011/
IDFC Infra bonds: http://lastbull.com/idfc-series-ii-infra-bonds/
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.
Sunil Kumar: The amount you invest in these bonds is Tax exempt upto a maximum limit of Rs.20,000 under sction 80CCF. This is over and above the existing limit of 1 lakh available under 80C. However pls do remember that the interest earned from these bonds will be taxable in the appropriate slab.
For purchase or any other query, feel free to contact:
Inderjeet Bhatnagar
Goldleaf Investments
(022) 28958733
Hi, wanted to know if there are any Infra bonds that can be purchase at the moment. Pls mention the closing dates! Thanks
Hi Amisha,
Please visit the below two links for current infra bonds issues.
http://lastbull.com/lt-section-80-ccf-infrastructure-bonds-%E2%80%93-2011-a-series/
http://lastbull.com/rec-infrastructure-bonds-fy-2010-%E2%80%93-2011/
sir,
i have purchased BOND OF L & T infrastructure finance co limited sr-3
7.5 BD O2DC20 FVRS1000 for Rs. 20,000/- the above item shown in Deman account also. But I am not received till today infrastructure bond for tax saving purpose please send the bond for tax purpose as early as possible. ( My client ID 10926248 DP ID IN30061)
DT: 2-3-2011 Yours sincerely
pLEASE SEND AS EARLY AS POSSIBLE
Hi Girija Kumar,
Isn’t your employer accepting the print out of screen shot of the DP? This website just provides information about infrastructure bonds. You may contact L&T http://www.ltinfrabond.com/
Any Infrastructure Bonds available at present?
Hi Avinash,
I think no infra bond is available at present. From an investor’s perspective Infrastructure bonds are basically for tax saving purpose. That you can get even if you invest after 10 months for the year 2011 – 2012. The time for tax savings through infra bonds for FY 2010 – 2011 is over now.
hi Avinash
Is any Infrastructure bond is available in the market ?
Dear Sir
Suppose I bought the Bonds for Locking period of 5 years then for only one year Shall I get exepmtion u/s 80CCF or for upcoming 4 years also. Please inform m consufed
Hi Sandeep,
You will get the exemption only for one year. And you can sell the bonds only after 5 years. To get exemption for other years, you will need to invest money in these bonds every year.Hope this is clear.
Sir,
Iam eager to invest in Infrastructure Bond for the financial year 2011-12. Please let me know when there is an open distribution of the bonds and if possible name & address of agents {for the same} in Kolkata.
Waiting for your positive reply through e-mail.
Thanks,
With regards,
Milind P.Patil.
The infrastucture bonds are good.Really a tax saving.Good luck!.Really if i get a chance to buy a infrastucture bond i definetlly purchace.
thank you
Hi
Plz. tell me for the FY 2011-12, by when infrabonds will be available.
Save Tax Upto 6180/-Extra By Investing Just 20000/-In IFCI INFRA BOND-U/s 80 CCF.Physical OR Demat.Offer Closes 14 Nov,11
Please suggest infra bonds with good rate of interest return option for the year 2011-2012.
Interest received from Infra bond is taxable or not?
Are these Infrastructure Tax Bonds available online and which website
Hi Joseph,
You need to have a demat account to buy these bonds online. If you have a demat, pls contact your broker, he will guide you.