Tuesday, 1 March 2011

Power Finance Corporation issues infrastructure Bonds

This is the time to invest in infrastructure bonds. The benefit is that you can get income tax exemption for the additional investment of Rs. 20000 under section CCF of income tax rule. This is apart from the investment of Rs. 100000 under section 80C. If you invest Rs. 20000 in infrastructure bond you can save a tax of Rs. 2000, 4000 and 6000 (excluding education cess) as per your income tax slab. If you have already invested the full allowable amount of Rs. 100000 under section 80 C you can turn for infrastructure bond in this eleventh hour of this financial year.

There are a few infrastructure bonds which are acceptable as per the section 80C is available in the market. Now Power Finance Corporation (PFC) also came with an infrastructure bond (PFC Infrastructure Bond) which is also acceptable as per the section 80CCF with a target of Rs. 5300 crores. The bond is already opened on 24th February, 2011 and the offer closes on 24th March, 2011. This is a long term infrastructure bond for 10 years and 15 years with an interest rate of 8.30 % and 8.5% respectively. There is a lock in period of 5 years for 10 years bond and 7 years for 15 years bond.

Both 10 years and 15 years bonds are available in annually interest payment option and cumulative interest payment option. As stated above both the options have 8.30 % and 8.50% annual interest payment or cumulative interest payment will be given.

Summary of the Issue Details:-

PFC bond issue Period           : 24th February 2011 to 22nd March 2011
Rating                                       : AAA / Stable by CRISIL and LAAA / Stable by ICRA
PFC bond Issue Size               : Rs 5,300 crore
Face Value of Single Unit       : Rs 5,000 per Bond
Minim Subscription (Unit)     : Minimum 5 bonds
Minimum Investment            : Rs. 25000
Lock-in Period                         : 5 years for 10 years bond or 7 years for 15 years bond
Listing Stock Exchanges        : NSE and BSE

REC, IIFCL, IDFC and L&T Infrastructure Bonds are some of the other infrastructure bonds issued this financial year with the benefit of section 80CCF

The main disadvantages of this bond are that you cannot get back the money before the lock in period and the minimum investment is Rs. 25000 is also another disadvantage. This is a good last minute option for getting additional tax saving.

Related Posts


L&T Infrastructure Bond from 07th February to 7th March 2011
After the closing of the second issue of IDFC Infrastructure Bond on 04th February, 2011, the L&T Infrastructure Finance Company also came in to market with their Infrastructure Bond, which is helpful to get additional Income Tax Exemption of Rs. … Continue reading ?



Rural Electrification Corporation Ltd (REC) issues Infrastructure bond under Section 80CCF
You are aware that you can save Rs. 20000 under section 80 CCF for getting additional tax exemption other than Rs. 100000 under section 80 C.  For this exemption you have to take infrastructure bonds from some approved institutions. There … Continue reading ?



IDFC ISSUES SCECOND BATCH OF INFRASTRUCTURE BOND
There is a good chance to save for additional tax exemption under section 80CCF of income tax act. The IDFC (Infrastructure Development & Finance Company) issues the second batch of infrastructure bond. They wish to accumulate around 2930 crore through … Continue reading ?

17 comments :

  1. salil kumar ghosh8 March 2011 at 22:57

    I'm interested to invest in PFC Infrastructure Bond. Where to get the Application Form etc ?

    ReplyDelete
  2. How to apply on line for power finance corporation infrastructure bonds under 80C

    Jayakumar

    ReplyDelete
  3. How to apply on line infrastructure bonds in power finance corporation?

    ReplyDelete
  4. How to get application for infrastructure bonds of Power finance Corporation

    ReplyDelete
  5. Dr Mayank Gupta18 March 2011 at 06:04

    How to apply on line for power finance corporation infrastructure bonds under 80C?

    ReplyDelete
  6. Dr Mayank Gupta18 March 2011 at 06:07

    How to apply for power corporation infrastructure bonds?

    ReplyDelete
  7. if any body required Infrastructure Bonds processing, please call me at 9241545354 (for bangalore only).

    ReplyDelete
  8. I need PFC application form

    ReplyDelete
  9. kulwinder kumar19 March 2011 at 03:33

    I’m interested to invest in PFC Infrastructure Bond. Where to get the Application Form etc ?

    ReplyDelete
  10. KAMLESH MANGTANI23 March 2011 at 02:10

    I am interested to invest in Infrastructure bonds of Power Finance Corporation on line
    please guide me

    ReplyDelete
  11. KAMLESH MANGTANI23 March 2011 at 02:12

    It is a good and long term investment.

    ReplyDelete
  12. Sir, I have invested of Rs. 20000/- at last day of Power Finance Corporation Limited. So I want to check that my Rs. 20000/- is alloted bond or not ?
    which site where i confirm my investment allotment.

    ReplyDelete
  13. DEEPAK KUMAR UPADHYAY13 May 2011 at 06:11

    Sir, I have invested of Rs. 20000/- for infrastructure bond of Power Finance Corporation Limited. I have not recieved the bonds till date.
    which site where i confirm my investment allotment

    ReplyDelete
  14. i am interested to purchase the infrastructural bond for the rebate purpose for the tax calender of 2011-12 is there are any types of bond has come in the mkt or not so i want to know when these bond are coming i am interested to purchase it.

    ReplyDelete
  15. Pankajkumar Patel31 July 2011 at 04:29

    Dear Sir,
    My wife has apply 04 no. infra. bond @ Rs. 5000/=20000/ Ruppes for physicaly bond in power fiance corporation Application form no 1--3170378 Name--Mandakini Ravjibhai patel, What is the status of bond . We have not received till date 31/7/2011. Physical bond dispatch or not ?

    ReplyDelete
  16. sir, I have invested Rs 20000.For infrastructure Bond of power finance corpration ltd.I have not recieved Bond till date.

    ReplyDelete
  17. Nirajkumar Jagdishchandra Antani6 October 2011 at 23:58

    I am interested to invest in recent PFC Infra. Bond kindly provide me application there off, please.
    NJ Antani

    ReplyDelete