VIEW ON IDFC LONG TERM INFRASTRATURE BOND

1. Long term infrastructure bond is a new tax saving instrument which introduced in our budget 2010
2. In our budget 2010 A new tax saving section, Sec 80CCF has been introduced, where an investment up to a maximum of Rs 20,000 in infrastructure bonds would be deductible from your taxable income subject to upper limit of 20000.
3. IDFC a NBFC launch his long term infrastructure bond with face value of 5000 per bond and you can apply minimum 2 bond (minimum amount 10000)
4. investment in IDFC LONG TERM INFRASTRATURE BOND not effect of your limit of 100000 in section 80C of income tax act because The tax saving investments in this new section (Sec 80CCF) is over and above Rs 1,00,000, that is already allowed under Section 80C.
5. IDFC LONG TERM INFRASTRATURE BOND is for 10 year period and minimum lock in period of 5 year.
6. IDFC LONG TERM INFRASTRATURE BOND will be listed on the stock exchange NSE/BSE but no trading will be established during the lock in period of 5 year.
7. IDFC LONG TERM INFRASTRATURE BOND are rated LAAA by Icra. This is the highest possible rating and indicates a stable outlook.
8. Author of this blog is not a registered investment advisor so please consult your investment advisor before investing.
9. last date of issue is 18 oct 2010.