IDFC has come out with the third tranche of tax saving long term infrastructure bonds. IDFC came out with the first tranche in November, 2011 and second tranche in January, 2012. The face value of the each bond is Rs 5000.
Tax Benefit:Investors will get tax benefit on Rs 20,000 under Section 80ccf of the Income Tax Act, 1961. This is additional tax benefit over Rs 1 Lac under Section 80c.
Opening and Closing Date:The issue shall open on 19 March, 2012 and shall close on 30 March, 2012.
Yield:IDFC offers 8.43% 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