IDFC Tax Saving Infrastructure Bond – March 2012 Details

IDFC with its infrastructure bond has given you one more option for investment under Section 80CCF in March 2012.

IDFC Infrastructure bond

IDFC Infrastructure Bond Details:

IDFC Tax Saving Infrastructure Bond - Tranche III

IDFC Infrastructure Bond Features:

  • The bonds don’t attract any TDS in case the investments are in demat form
  • The bonds are available in Demat & Physical form
  • The bonds will be listed on NSE and BSE and can be traded after the 5 year lock-in period
  • Investors can mortgage or pledge these bonds to avail loans after the lock-in period
  • An investor would need a PAN card to invest in these bonds
  • The bonds will be issued only to Resident Indian Individuals and HUF
  • An applicant may subscribe to the two series of Bonds offered but the minimum application under each series shall be one bond i.e. Rs. 5,000
  • Interest on the Bonds shall be payable on annual or cumulative basis depending on the series selected by the bond holders
  • The interest accrued on the bonds will be credited to the respective bank registered with the demat account through ECS on the due date for interest payment

Rate of Return (Tax Adjusted):

Tax Rate (%) Tax Benefit adjusted rate of return on Maturity
10.3 10.11% 9.61%
20.6 12.08% 10.95%
30.9 14.45% 12.50%
Tax Rate (%) Tax Benefit adjusted rate of return on Buyback
10.3 11.23% 10.81%
20.6 14.50% 13.54%
30.9 18.39% 16.74%

This might be the last of Infrastructure Bonds – as Infrastructure Bonds (under Sec 80CCF) would no more be eligible for Tax Saving Instrument from FY 2012-13.

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