Thursday, 17 November 2011

New IDFC Infrastructure Bond with 9% interest

IDFC issues new Infrastructure bond suitable for Income Tax Exemption under section 80CCF with 9% annual interest and 10 years maturity period.  The issue of New IDFC (Infrastructure Development finance Company Ltd) infrastructure bond opens in the market on 21st November, 2011 and will be closed on 16th December, 2011. Face value of one unit of the infrastructure bond is Rs. 5000.

Maturity Period and Rate of Interest: There is only one maturity period of ten years for the bond with a buy back option after 5 years of the allotment of IDFC infrastructure bond. The lock in period of the bond is 5 years and after 5 years the investor can redeem the bond by using buy back option. But the bond guarantees 9% interest.

Minimum Investment : Minimum required investment is 2 bonds of Rs. 5000 each.

Investment Option: The IDFC infrastructure bond is available in annual interest payment option and cumulative interest payment option and both the options are available in buy back option after 5 years, even though the maturity period is ten years for both the interest payment options.

How to Invest: You can buy IDFC infrastructure bond online or offline by submitting downloaded application forms in collection centers. The completed application form should include Self attested copy of pan card,  address proof and a cancelled cheque in addition to the payment cheque for non demat holders those who need bonds in physical form. For Demat account holders should provide Depository participant name and Demat account number. Please write Name, Application No & mobile number on the back side of the payment cheque.

Maturity Value: The maturity value of the single unit of IDFC infrastructure bond is Rs. 11840 for cumulative interest option and Rs. 5000 is for annual interest payment option. But the buyback amount of annual interest payment option is Rs. 5000 and cumulative interest option is Rs. 7695 after 5 years of allotment of the bond.

Listing of IDFC infra bond: The IDFC infrastructure bond will be listed in NSE & BSE after 5 years lock in period

Tax Benefit & Tax Liability: The investment up to Rs. 20000 in IDFC infrastructure bond is exempted from Income tax under section 80CCF over Rs. 100000 under section 80C. The interest earned from Infrastructure bond is taxable. In annual interest option the interest will be taxable every year and in compound interest option the margin is taxable under capital gain tax.

Ratings: The ICRA & Fitch rating of the IDFC infrastructure bond is AAA.

The new issue of IDFC infrastructure bond is convenient to invest in and it is more beneficial than other issues of infrastructure bond by providing a slight difference in interest rate of 9%. But now the interest rate of bank deposits also higher than earlier. So the response of investors is not sure right now and can confirm only after closing the issue on 16th December, 2011.

IDFC Infrastructure Bond


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PFC Infrastructure bond
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3 comments :

  1. Priti Ramesh Chonkar22 November 2011 at 22:43

    How can i buy IDFC bonds? What will be the maturity value of bonds purchased for Rs. 20000?

    ReplyDelete
  2. Save Tax & Earn Rs.15180 by investing Rs.20000 in INFRA BONDS u/s 80ccf. for door step service cont.9311099558, 9716300093 & 94.

    ReplyDelete
  3. IDFC LONG TERM INFRA BOND IS MY FAVOURATE TAX SAVING SCHEME.

    ReplyDelete