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Make Investment Under Tax Free Infra Bonds, Avail Tax Benefit Even After DTC

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For most of us, financial year ending is the time to plan for saving income tax. People must have started investing under tax free investment schemes to avail tax deduction of Rs 100,000 as per section 80 C of income tax act. And to save more tax, people are also considering investing under tax free infra bonds to avail additional tax deduction of Rs 20,000.

80CCF Infrastructure bonds

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As we all know DTC is expected to come into effect by April 2012, so before investing under long tem infrastructure bonds it is good for every tax payer to understand ‘Is Deduction over infra bond will continue even after DTC?’ So here is the answer-

As per revised DTC draft, investment made under any scheme which enjoys EEE (exempt, exempt, exempt) method of taxation under income tax act would continue enjoy the same for the full duration of the financial instrument. In simple words, if one invest under infra bonds before DTC come into effect, his investment will enjoy the benefit of EEE taxation method till the time of maturity.

Benefits Of Investing Under Tax Free Long Term Infra Bonds
  • Additional income tax benefit of Rs 20,000 available under section 80CCF of the Income Tax Act, 1961.
Companies Offering Infrastructure Bonds

Currently few companies are offering there infrastructure bonds such as –

Company

Issue Open Date

Issue Close Date

Tenure

Buyback Option

Interest

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Srei Infra Finance 31.12.2011 31.01.2012 10 Years Yes (5 Years) 8.90%
Srei Infra Finance 31.12.2011 31.01.2012 10 Years Yes (5 Years) 8.90% compounded (paid at maturity)
Srei Infra Finance 31.12.2011 31.01.2012 15 Years Yes (5 Years) 9.15%
Srei Infra Finance 31.12.2011 31.01.2012 15 Years Yes (5 Years) 9.15% compounded (paid at maturity)
REC 19.12.2011 10.02.2012 10 Years Yes (5 Years) 8.95% compounded
(paid at maturity)
REC 19.12.2011 10.02.2012 10 Years Yes (5 Years) 8.95%
REC 19.12.2011 10.02.2012 15 Years Yes (7 Years) 9.15% compounded  (paid at maturity)
REC 19.12.2011 10.02.2012 15 Years Yes (7 Years) 9.15%
IFCI Infra Series IV 30.11.2011 16.01.2012 10 Years Yes (5 Years) 9.09% (paid at maturity)
IFCI Infra Series IV 30.11.2011 16.01.2012 10 Years Yes (5 Years) 9.09%
IFCI Infra Series IV 30.11.2011 16.01.2012 15 Years Yes (5 Years) 9.16% (paid at maturity)
IFCI Infra Series IV 30.11.2011 16.01.2012 15 Years Yes (5 Years) 9.16%

2 comments

  1. hi
    2000 rs IFCI Infra Series IV 30.11.2011,after 10 Years(2022) final amount deatils . 9.09% (paid at maturity
    Regards
    NARAYANA REDDY

  2. hi
    20000 rs IFCI Infra Series IV 30.11.2011,after 10 Years(2022) final amount deatils . 9.09% (paid at maturity
    Regards
    NARAYANA REDDY

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