Again IDFC has come out with IDFC bonds.
Tax payers can start investing in savings to avail income tax benefits: The limit for maximum deduction available under Sections 80C, 80CCC and 80CCD (combined together) is Rs. 1,00,000/- (Rs. one lac only). An additional deduction upto a maximum of Rs. 20,000/- will be available from Assessment Year 2011-12 (FY 2010-11) for investment in Infrastructure Bonds under Sec.80 CCF. Now Infrastructure Development Finance Company (IDFC) has opened the sale of infrastructure bonds from 28.02.2011which will be available upto 16.3.2011. Each bond has value of Rs.5000/-.
There will be 2 series of issue. Series no. 1, 2. Minimum number of bonds per application: 2 bonds and multiple of one bond thereafter. Applicant can select different series within 2 bonds. Interest payment: Annual Interest rates; For series 1, 8.25% interest payable annually. Non-cumulative and investment period is 10 full years. No buy back facility. Maturity amount after 10 years will be Rs.5000/- as interest is paid periodically. For series 2, Cumulative and buyback offer after five years. Rate of interest 8.25%.
The investor would need a demat account and pan card to invest in these bonds. The bonds will not attract any TDS. The interest accrued on the bonds will be credited in the respective bank registered with the demat account through ECS on the due date for interest payment. The bonds will be listed on NSE/BSE after 5 year lock in period. Investors can mortgage or pledge these bonds to avail loan after the lock in period. ICRA had given a credit rating of LAAA for the issue. ‘L’ in the rating indicates long term bond and ‘AAA’ indicates highest quality (similar to Central Government bonds).
Power Finance corporation has also come out with such bonds which carry slightly higher interest of 8.30% interest.
C. R. Venkata Ramani