Saturday, November 19, 2011

IDFC 80ccf Tax Saving Infrastructure Bond - Review

IDFC is the latest company to come out with tax saving long term infrastructure bonds after IFCI and PFC. Investors will get tax benefit on Rs 20,000 under Section 80ccf. This is additional tax benefit over Rs 1 Lac under Section 80c.

The issue shall open on 21 November and shall close on 16 December, 2011.

IDFC offers 9% interest rate with two options:

- Annual in which interest will be paid annually
- Cumulative in which interest will be paid along with principal at maturity

Maturity period is 10 years with buyback option after 5 years. Both ICRA and Fitch have rated these bonds as AAA.

We had already mentioned in the previous article that it is better to wait for investing in tax saving infrastructure bond as the interest rate is expected to rise. IDFC is a good company and is offering higher interest rate than IFCI and PFC so we would recommend investors to invest in these tax saving bonds if you have not already invested in PFC or IFCI.


1 comments:

Post a Comment