Invest in L & T Infra Bond and Save Tax under 80CCF (Max 20000),excluding 80 C 1 Lac Limit with upto 8.30 % Interest compounded annually issuecloseon7 March 2011-jinendra

Saving tax with L&T Infra Long-term Infrastructure Bonds

Here’s a defined structure of interest rates and tax deduction under these bonds.
You have 4 options you can pick and choose from as per your requirements.

The specific terms of the instrument:

Series	1	2
Frequency of Interest	Annual	Cumulative
Buyback Facility	Yes	Yes
Buyback Date	First Working Day after 7 years from the Date of Allotment	First Working Day after 7 years from the Date of Allotment
Interest Rate	8.20% p.a.	8.30% p.a. compounded annually
Maturity Date	10 years from the Date of Allotment.	10 years from the Date of Allotment.
Maturity Amount (Rs.)	1,000	2,220
Buyback Amount (Rs.)	1000 at the end of 5 yrs./1000 at the end of 7 yrs.	1490 at the end of 5 yrs./1748 at the end of 7 yrs
Buyback Intimation Period	The period commencing from 6 months preceding the corresponding Buyback Date and ending 3 months prior to the corresponding Buyback Date
Yield of the Bond on Maturity*	8.20% p.a.	8.30% p.a. compounded annually

* * As per 80CCF Notification, the Yield of the Bond (to be paid by the Issuer) shall not exceed the yield on government securities of corresponding residual maturity as reported by the Fixed Income Money Market and Derivatives Association of India (FIMMDA), as on the last working day of the month immediately preceding the month of the issue of the bond.

The investment made in these bonds will be eligible for tax benefits under Section 80 CCF of the Income Tax Act, 1961. The Table below provides the yield to the investors on maturity (with tax benefits) and the yield to the investors on buyback (with tax benefits) for the applicable tax rates

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