Invest in IDFC Infra Bond and Save Tax under 80CCF (Max 20000),excluding 80 C 1 Lac Limit with 8%compounded annually issue close on 4th February 2011 –Jinendra Porwal
IDFC Infrastructure Bond
IDFC infrastructure bond is a tax free infrastructure bond under section 80CCF of Income Tax Act, 1961. IDFC is one of the very few NBFC (Non Banking Financial Companies) which are allowed to issue tax free infrastructure bonds.
IDFC launched the first issue of tax free infrastructure bond last year in October and collected about 436 crores and 2.35 lakh applications. IFCI will launch the second phase of the same bond from Monday 17, January 2011.
IDFC Infrastructure Bond is offering investors an interest rate of 8% compounded anually. The bond has investment period of 10 years. Redemption is allowed after 5 years. The investor can select from two payment options – Cumulative and Non Cumulative.
In the non cumulative option the interest is payable yearly. For example for an investment of Rs 10,000 in non cumulative option the investor will get Rs 800 every year as interest payment. This interest will be taxable – interest will be added to the taxable income of the investor.
In the cumulative option the interest will be payed along with principle at the end of investment period. This means interest will earn interest. For example for an investment of Rs 10,000 in cumulative option the investor will receive Rs 21,589 at the end of 10 years. The investor will have to pay interest on the interest amount of Rs 11,589.
An investor should invest in IDFC infrastructure bond only if he/ she has completely exhausted Rs 1,00,000 exemption limit under section 80C of Income Tax Act. This means if your total investment in instruments like insurance premium, provident fund, ELSS mutual fund this financial year is less than Rs one lakh – then first invest in these instruments. After this limit if your still have money for long term investment fill IDFC Infrastructure Bond application form.
Jinendra Kumar Porwal (Advisor)
"Riddhi Siddhi" Estate,
1, Gokul Nagar (Commercial)
Near Bohra Ganesh Ji Temple,
Phone: 0294- 2471358
Mobile : 9351445025, 9829353219,9352047407 & 9460700906
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