| IDFC Infra Bonds - Deduction of Rs. 20,000 u/s 80 CCF Download Application Form
requirements for demat mode :
1. cheque in favour of : IDFC Infra Bonds - Tranche 2
2. PAN Card Copy - Self Attested
3. Demat Account Details
requirements for physical mode :
1. cheque in favour of : IDFC Infra Bonds - Tranche 2
2. PAN Card Copy - Self Attested
3. Address Proof - Self Attested
4. Cancelled Cheque Copy - Self Attested
Long Term Infrastructure Bonds by IDFC
IDFC has come up with its first tranche of
Long Term Infrastructure Bonds for financial year 2011 - 12.
These Bonds would be for a period of ten year
with an option to the investor to buyback the same after five years.
These bonds have got the highest credit rating of
(ICRA) AAA by ICRA and Fitch AAA (ind) by Fitch.
Issue opens: 11 January, 2012
Issue closes: 25 February, 2012
Download Application Form
Series | 1 | 2 | Face Value | Rs. 5,000 per Bond | Minimum number of bonds per application | Two bonds and in multiples of one bond thereafter.
For the purpose of fulfilling the requirement of minimum subscription of
two bonds, an applicant may choose to apply for two bonds
of the same or different series. | Interest payment | Annual | Cumulative | | Interest Rate | 9 % p.a. | N.A. | | Maturity Amount per Bond | Rs. 5,000 | Rs. 11,840 | | Maturity | 10 years from the deemed date of allotment | | Yield on Maturity | 9 % | 9 % compounded annually | | Buyback Facility | Yes | | Yield on Buyback | 9 % | 9 % compounded annually | | Buyback Date | Date following 5 years and one day from the deemed date of allotment | | Buyback Amount | Rs. 5,000 per bond | Rs. 7,695 per bond | | Buyback Intimation Period | The period beginning not before nine months prior to the buyback date
and ending not later than six months prior to the buyback date. |
Highlights : - The bonds don"t attract any TDS in case the investments are in demat form - The bonds are available in Demat & Physical form - The bonds will be listed on NSE and BSE and can be traded after the 5 year lock-in period - Investors can mortgage or pledge these bonds to avail loans after the lock-in period. - An investor would need a PAN card to invest in these bonds. - The bonds will be issued only to Resident Indian Individuals and HUF - An applicant may subscribe to the two series of Bonds offered
but the minimum application under each series shall be one bond i.e., Rs. 5,000 - Interest on the Bonds shall be payable on annual or cumulative basis
depending on the series selected by the bond holders - The interest accrued on the bonds will be credited to the respective bank
registered with the demat account through ECS on the due date for interest payment
Issue Structure : The Bonds, with a maturity of ten years, will be issued in two series. Series-1 : Carry a 9.0% coupon, payable annually; with a buyback option ( after expiry of lock in ) Series-2 : Cumulative option, 9.0% coupon, compounded annually; with a
buyback option ( after expiry of lock in )
Tax Adjusted Rate of Return | Tax Rate (%) | Tax Benefit adjusted rate of return on Maturity (with Tax Benefits upto Rs. 20,000 u/s 80CCF of the Income Tax Act, 1961) | | 10.30 | 10.72 | 10.19 | | 20.60 | 12.75 | 11.54 | | 30.90 | 15.19 | 13.10 | | Tax Rate (%) | Tax Benefit adjusted rate of return on Buyback (with Tax Benefits upto Rs. 20,000 u/s 80CCF of the Income Tax Act, 1961) | | 10.30 | 11.83 | 11.39 | | 20.60 | 15.15 | 14.14 | | 30.90 | 19.11 | 17.35 |
What are infrastructure bonds ?
To channelize long term retail flows into the Infrastructure sector,
the Government of India had introduced Section 80CCF
under the Income Tax Act, 1961 (‘the Act’).
This section provides for an income tax deduction
for an individual investor who subscribes in the
Long-Term Infrastructure Bonds (‘Bonds’),
issued by certain financial institutions. Presently, individual investors have various options
to invest upto Rs. 1 lakh into various instruments such as
PPF, Insurance, ELSS etc as allowed
under sections 80C, 80CCC and 80CCD of the Act. An investment in infrastructure bonds
under Section 80CCF is an additional window
to save tax upto Rs. 20,000,
over and above the Rs. 1 lakh limit already available.
Download Application Form
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