Tuesday, January 10, 2012

L&T 80ccf Tax Saving Infrastructure Bonds (Tranche 2) 2011-2012

L&T has come out with the second tranche of tax saving infrastructure bonds issue which can help investors save tax up to Rs 20,000 under section 80ccf. This is an additional tax saving option that was introduced by government over and above Rs 1 lakh limit under section 80c.

L&T Infrastructure tax saving bonds 2012A issue opens from 10 January, 2012 and shall close on 11 February, 2012.

The investors will get an interest rate of 8.7% per annum. There are 2 options avaialable:
- Non-Cumulative: The interest rate will be paid annually
- Cumulative: The interest will be reinvested and paid at the time of maturity giving better return

The minimum application is 5 bonds and each bond costs Rs 1000 each. The bonds mature in 10 years but can be sold after 5 years lock-in on BSE where they will be listed.

CARE and ICRA has assigned AA+ ratings to these bonds.

These Infrastructure Bonds 2012A Series is the second in the series for this financial year from L&T after they came out with the first one in November, 2011. Both IDFC and L&T are offering lower interest rate on their second tranche issue. So, it is better to invest in REC which is offering higher interest rate.


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