IFCI Infrastructure Bonds

Issue opens on -9th Aug 2010 & Closes on - 31st Aug 2010.

CBDT has notified New Infrastructure Bonds u/s 80CCF. An Individual or HUF can invest in these new infrastructure Bonds up to Rs.20000/- in a financial year.

Features:
1. This bonds will be called “Long Term Infrastructure Bond”
2. New section can be availed by Individual or HUF only.
3. Only Rs.20,000/- can be invested in a Financial year to avail deduction under section 80CCF
4. Rs.20,000/- limit is in addition to 1,00,000/- limit of section 80C, 80CCC, 80CCD
5. Tenure of the Bonds will be 10 Years.
6. The minimum lock in period for an investor shall be five years.
7. After 5 years investor may exit either through the secondary market or through a buyback facility, specified by the issuer in the issue document at the time of issue.
8. Issuer of the Bonds is LIC, IFCI, IDFC and other NBFC classified as Infrastructure Company by RBI.
9. There is a limit of total amount of Bonds which can be issued by these companies. 10. Permanent Account Number is must to apply these bonds.
11. Yield of the bond – The yield of the bond 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.

Section 80CCF of the Income-tax Act, 1961 – Deduction – In respect of subscription to long-term infrastructure bonds – Notified long-term infrastructure bond

For any further queries kindly contact on the below mentioned number:

022 40156699/40156692/40156688

Thanks,

Gaurav Agarwal

Head Dealer

DENIP Consultants Pvt Ltd