IDFC Long Term Infrastructure Bond with 9% interest - Nov 2011

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 21^st November, 2011 and will be closed on 16^th 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.

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 and also can submit the filled up downloaded forms in collection centers.

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 16^th December, 2011.

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IDFC Long Term Infrastructure Bond Tranche 1 Application Form

Download IDFC Long Term Infrastructure Bond Tranche 1 Application Form http://tinyurl.com/88ky74g

Download application forms for Infrastructure Bonds for year 2011 – 2012.

 

These Bonds are Tax Saving Infrastructure Bonds. By making investment of Rs 20,000 in Infrastructure Bonds, you can avail tax exception under Section 80CCF.

 

Section 80CCF is in addition to Investment of Rs 1, 00, 000 that you can make under Section 80C and Rs 20,000 under Section 80D and Section 80E for Education loans of the Income Tax Act.

 

You can Download Infrastructure Bonds application forms for:

 

1)      Infrastructure Development Finance Company (IDFC)

2)      Larsen & Toubro Infrastructure Finance Company Limited (L&T)

3)      IFCI

4)      Rural Electrification (REC)

5)      Power Finance Corporation (PFC)

6)      Life Insurance Corporation (LIC)

 

Documents Required:

 

1)      Filled Up Application

2)      Copy of the PAN card (Self-attested)

3)      A Cheque in favour of the

4)      KYC Documents: Self-attested copies of the following documents are required to be submitted by the Applicants as KYC Documents:

a.       Proof of identification for individuals: Any of the following documents are accepted as proof for individuals:

Ø      Passport

Ø      Voter's ID

Ø      Driving Licence

Ø      Government ID Card

Ø      Defence ID Card

Ø      Photo PAN Card

Ø      Photo Ration Card.

 

b.      Proof of residential address: Any of the following documents are accepted as proof of residential address:

Ø      Passport

Ø      Voter's ID

Ø      Driving Licence

Ø      Ration Card

Ø      Society Outgoing Bill

Ø      Life Insurance Policy

Ø      Electricity Bill

Ø      Telephone Bill (Land/Mobile).

 

Procedure:

 

1)      Print the application form, print and Fill it up

2)      Attach the required Documents

3)      Submit the form in a collection canter near you

 

Find a collection canter:

 

Collection canter near you

 

What is Tax Saving Infrastructure Bond?

These bonds are options given to infrastructure finance companies (IFCs) to support their lending to avoid dependence on banks. IFCs are not supposed to take deposits from retail customers.

The bonds would be issued in the dematerialised format and investors can even buy it in physical format if they don't have a PAN card or demat account.

The bonds will be listed on the Bombay Stock Exchange (BSE) and investors can exit the bonds in the secondary market after the completion of the lock-in period.

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Buy Mutual Funds Online by selecting the Mutual Fund Schemes.

 

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L&T Long Term Infrastructure Bond Tranche 1 Application Form

Download L&TLong Term Infrastructure Bond Tranche 1 Application Form

 

http://www.docstoc.com/docs/105109827/L_T-Long-Term-Infrastructure-Bond-Tranche-1-Application-Form

 

Download application forms for Infrastructure Bonds for year 2011 – 2012.

 

These Bonds are Tax Saving Infrastructure Bonds. By making investment of Rs 20,000 in Infrastructure Bonds, you can avail tax exception under Section 80CCF.

 

Section 80CCF is in addition to Investment of Rs 1, 00, 000 that you can make under Section 80C and Rs 20,000 under Section 80D and Section 80E for Education loans of the Income Tax Act.

 

You can Download Infrastructure Bonds application forms for:

 

1)      Infrastructure Development Finance Company (IDFC)

2)      Larsen & Toubro Infrastructure Finance Company Limited (L&T)

3)      IFCI

4)      Rural Electrification (REC)

5)      Power Finance Corporation (PFC)

6)      Life Insurance Corporation (LIC)

 

Documents Required:

 

1)      Filled Up Application

2)      Copy of the PAN card (Self-attested)

3)      A Cheque in favour of the

4)      KYC Documents: Self-attested copies of the following documents are required to be submitted by the Applicants as KYC Documents:

a.       Proof of identification for individuals: Any of the following documents are accepted as proof for individuals:

Ø      Passport

Ø      Voter's ID

Ø      Driving Licence

Ø      Government ID Card

Ø      Defence ID Card

Ø      Photo PAN Card

Ø      Photo Ration Card.

 

b.      Proof of residential address: Any of the following documents are accepted as proof of residential address:

Ø      Passport

Ø      Voter's ID

Ø      Driving Licence

Ø      Ration Card

Ø      Society Outgoing Bill

Ø      Life Insurance Policy

Ø      Electricity Bill

Ø      Telephone Bill (Land/Mobile).

 

Procedure:

 

1)      Print the application form, print and Fill it up

2)      Attach the required Documents

3)      Submit the form in a collection canter near you

 

Find a collection canter:

 

Collection canter near you

 

What is Tax Saving Infrastructure Bond?

These bonds are options given to infrastructure finance companies (IFCs) to support their lending to avoid dependence on banks. IFCs are not supposed to take deposits from retail customers.

The bonds would be issued in the dematerialised format and investors can even buy it in physical format if they don't have a PAN card or demat account.

The bonds will be listed on the Bombay Stock Exchange (BSE) and investors can exit the bonds in the secondary market after the completion of the lock-in period.