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    HomeNewsBusinessPersonal FinanceTax-free infra bonds kick in: should you invest?

    Tax-free infra bonds kick in: should you invest?

    Currently, Infrastructure Development Finance Company (IDFC) and L&T Infrastructure Finance, both engaged into infra lending business, are running two retail issues offering 9% rate of interest per annum. Should you invest?

    December 09, 2011 / 14:52 IST
       
       
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      Saikat Das
      Moneycontrol.com


      With the year coming to an end, it is time to invest for saving your income tax. And companies leave no stone unturned to seize this opportunity to raise funds through tax-saving long term infrastructure bonds. Currently, Infrastructure Development Finance Company (IDFC) and L&T Infrastructure Finance, both engaged into infra lending business, are running two retail issues offering 9% rate of interest per annum.

      Bond issues at a glance:

      Company

      		Ratings

      		Interest rate

      IDFC

      		AAA

      		9%

      L&T Infra

      		AA+

      		9%

      PFC

      		AAA

      		8.50-8.75%*

      IFCI

      		AA- & A

      		8.50-8.75%*


       


       


       


       

      *Issues already closed

       

      What are long term infrastructure bonds?

      These are debt instruments wherein an investment upto Rs 20,000 is eligible for individual income tax benefits under section 80CCF. This is over and above the normal limit of Rs 1 lakh investments. 

      Should you invest?


      Experts across the board recommend it as a prudent investment. However, you should keep in mind certain key factors while investing.

      first published: Nov 26, 2011 02:36 pm

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