IFCI Long Term Infrastructure Bonds Series II Review

 

IFCI Long Term Infrastructure Bonds Series II Review

Here are the key features of these Bonds.

- Issue period: 16th November 2010 to 31st December 2010

- Rating: BWR-AA by Brickworks Ratings India Pvt. Ltd

- Offering: 2,00,000 unsecured, redeemable, non-convertible bonds of Rs.5000 each aggregating to Rs.100 crore with a green shoe option to retain oversubscription for issuance of additional infrastructure bonds.

- Type: Private Placement Basis

Tax Benefit

Under Section 80CCF of the Income Tax Act, Rs.20,000 per annum paid or deposited as subscription to long-term infrastructure bonds shall be deducted in computing the taxable income. This is over and above Rs.1 Lakh tax benefit available under section 80C, 80CCC & 80CCD.

My Opinion:

In my opinion, one can invest in such type of infrastructure bonds to save 20k more tax above the limit of Section 80C. So go for it if you have not already invested in the infrastructure bonds yet.