A lot of investors tend to get confused between the two types of tax-friendly avenues that are getting popular these days - Tax Free Bonds and Tax Saving Bonds. However, it is critical to note the difference between the two

PTC India Financial Services (PFS) Long Term Infrastructure Bonds, which carry benefit under Section 80CCF of the Income Tax Act, 1961, will be open till February 29, 2012

Following are the salient features of the bonds:

PTC India Financial Services (PFS) Long Term Infrastructure Bonds - Series 2 Details:
Eligibility: Resident Indian Individuals and HUFs
Application Size: The lots for application would be 1 Bond and in multiples of 1 Bond thereafter.
Face Value: Rs.5,000/- per bond
Form: Demat / Physical Form. However, trading will be allowed only in Demat form after lock-in period
Rating:  ‘A+’ by CARE, ‘A+’ by ICRA, ‘AA’ by Brickwork Ratings

L&T Infrastructure Finance Company has issued Tranche 2 bonds through a public issue of Long Term Infrastructure Bonds with a Face Value of Rs 1,000 each in the nature of secured, redeemable, non-convertible debentures having benefits under Section 80CCF of the Income Tax Act, 1961

The Tranche 2 Bond Issue has opened from January 10, 2012, and will close on February 11, 2012, or earlier, as may be decided by the board of the company

Following are the salient features of the bonds:

REC Long Term Infrastructure Bond-Series (2011-12), which carries benefit under Section 80CCF of the Income Tax Act, 1961, has opened from December 19, 2011 and will be open till February 10, 2012

Following are the salient features of the bonds:

REC Long Term Infrastructure Bonds (Series - 2011-12) Details:
Eligibility: Resident Indian Individuals and HUFs
Application Size: The lots for application would be 1 Bond and in multiples of 1 Bond thereafter.
Face Value: Rs.5,000/- per bond
Form: Demat / Physical Form. However, trading will be allowed only in Demat form after lock-in period
Security: Unsecured

Interest Rates and other details:

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:

SREI Infrastructure Long Term Infrastructure Bond - Tranche 1, a bond issue covered by the benefit of Section 80CCF of the Income Tax Act, 1961 has been launched. The Issue will remain open till January 31, 2012

The following are the details of the bonds:

Eligibility: Resident Indian Individuals (Minors not eligible) and HUFs

Application Size:
The lot for application would be 1 Bond and multiples of 1 Bond thereafter.

Face Value: Rs.1,000/- 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.