IDFC Long-term Infrastructure Bonds – Tranche 2, a tax saving bond issue having benefit under Section 80 CCF of Income-Tax Act, 1961 is open for subscription till February 10, 2012
The following are the details of the bonds:
Eligibility: Resident Indian Individuals and HUFs
Application Size:
The lots for application would be 2 Bonds and in multiples of 1 Bond thereafter.
Face Value: Rs.5,000/- per bond
Lock-in period: 5 years
Form: Demat / Physical Form. However, trading will be allowed only in Demat form after lock-in period
Availability: In dematerialized form and in physical form.
Interest Rates and other details:
According to Section 80CCF of the Income Tax Act, 1961, in computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, the whole of the amount, to the extent such amount does not exceed twenty thousand rupees, paid or deposited, during the previous year, as subscription to long-term infrastructure bonds as may, for the purposes of this section, be notified by the Central Government
By investing in these bonds, investors can therefore, avail deduction under Section 80CCF of upto Rs.20,000/-, which will be over and above the prevailing deduction of Rs.100,000/- for investments made under Section 80C of the Income Tax Act, 1961
The following are the details of the bonds:
Eligibility: Resident Indian Individuals and HUFs
Application Size:
The lots for application would be 2 Bonds and in multiples of 1 Bond thereafter.
Face Value: Rs.5,000/- per bond
Lock-in period: 5 years
Form: Demat / Physical Form. However, trading will be allowed only in Demat form after lock-in period
Availability: In dematerialized form and in physical form.
Interest Rates and other details:
| Particulars | Option I | Option II |
| Face Value | Rs.5,000/- | Rs.5,000/- |
| Interest frequency | Annual | Cumulative |
| Duration | 10 years | 10 years |
| Coupon Rate p.a. | 8.90% | 8.90% |
| Payment | Compounded Annually | Payable Annually |
| Buyback Amt. | Rs. 5,000.00 | Rs. 7,590.00 |
| Maturity Amt. | Rs. 5,000.00 | Rs. 11,515.00 |
According to Section 80CCF of the Income Tax Act, 1961, in computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, the whole of the amount, to the extent such amount does not exceed twenty thousand rupees, paid or deposited, during the previous year, as subscription to long-term infrastructure bonds as may, for the purposes of this section, be notified by the Central Government
By investing in these bonds, investors can therefore, avail deduction under Section 80CCF of upto Rs.20,000/-, which will be over and above the prevailing deduction of Rs.100,000/- for investments made under Section 80C of the Income Tax Act, 1961
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