Indian Advisor

  • Subscribe to our RSS feed.
  • Twitter
  • StumbleUpon
  • Reddit
  • Facebook
  • Digg

Sunday, 11 December 2011

Infrastructure Bonds ARE Back in Action!!

Posted on 07:17 by Unknown
 The additional tax benefit provider (sec 80CCF) in form of Infrastructure bonds…let us see how they fare and which company bond to invest.




A spate of Infra Bonds have hit the markets in the recent weeks and much more are expected.
After IDFC and L&T, IFCI has now come out with a Infrastructure Bond which allows deduction under section 80ccf.

Compared to other two bond issues, IFCI definitely scores better because of its higher interest yield.

IFCI which had already come with 1st Tranche has come out again, albeit with a much higher interest rate now.

Compared to other two bond issues, IFCI definitely scores better because of its higher interest yield.


With this Bonds, you get an additional 20000 Tax Benefit over and above the 1 lakh under Sec80c.

The Bonds will be listed on BSE after the mandatory lock in of 5 years, thus giving you the required liquidity.

And, thankfully, no TDS will be deducted.

These Infra bonds typically have a lock in of 5 years and later on are listed on Stock markets wherein you can sell.

Moreover, all the Bond issuers also give the option of buyback facility.

You can make use of the same depending on the Interest rate scenarios at that time.

I strongly urge to make maximum use of this facility and take advantage of this benefit.

On an investment of Rs.20k, an individual in the Top Tax Bracket of 30% can make a saving of Rs.6000 and also earn an interest of 9% to 9.09% which, however, for the Highest Bracket Tax Payer, the effective yield works out to more than 13%…..

If you have observed last year, interest rate on the bonds kept on increasing for every issue, but this is unlikely to happen this year as the Interest rates are at their peak and the RBI has already indicated that the interest rates could be moderated.

This will ensure that the coming issues will be priced at similar rate of interest rates or in fact, even lower.

Better to lock in the higher interest rates with the IFCI Infastructure Bond.


Those Tax payers who have exhausted their Exemption for Investments of Rs.1 lakhs in Sec 80c, 80ccc, 80ccd can look at these Infra Bonds.




With interest rates at the peak, this is the right time to invest in these bonds rather than waiting for further issues wherein the interest could be lesser.

Invest now. The earlier the better.

Regards,
Srikanth Matrubai

P.S.
For form downloads, visit the following link and put my code as 82593
http://www.rrfinance.com/Bond_Pdf/Infrastructureissues1.aspx

 

Also visit
http://equityadvise.blogspot.com

Read More
Posted in Tax Planning | No comments
Newer Posts Older Posts Home
Subscribe to: Posts (Atom)

Popular Posts

  • HDFC Young Star Plus
    HDFC Young Star Plus The Young Star Plus (YSP) plan from HDFC Standard Life is another unit linked child plan, the earlier being Young Star...
  • INCOME FUNDS' NAV TOO COULD FALL.....
    INCOME FUNDS' NAV TOO COULD FALL..... A Guest asked, "Can you pl enlighten me on what`s happening to the Income Funds ? It was...
  • SBI PSU FUND - ANALYSIS
    SBI Mutual Fund has launched a new scheme, SBI PSU Fund. It is an equity diversified fund that mainly invests in stocks of domestic pu...
  • Fidelity Equity Fund - HOLD
    Fidelity Equity Fund - HOLD Dear all, Fidelity Equity Fund is "go anywhere" fund. The scheme endeavours to invest across the marke...
  • DO NOT BUY GOLD THIS AKSHAYA TRITIYA!
        If Akshaya Tritiya is an auspicious day to buy GOLD, then, when, is an inauspicious day to Sell Gold? These "experts"(?) alw...
  • FT DYNAMIC FOF - AUTO TIMING THE MARKETS
    Want a Fund which automatically books profits when the markets are overvalued and enter the markets when they are cheap??? Then, the Frankl...
  • FIDELITY INDIA VALUE FUND - AVOID
    Fidelity has launched a New Fund Offer with a attractive name, Fidelity India Value Fund. The fund will invest in Indian and international e...
  • I need your advise
    Mr.Sunder requested for advise : Hello Mr Srikanth, I am planning to invest Rs 10000/- per month in Mutual Funds and was researching t...
  • The "TRAP" of going Direct
      SEBI has allowed Mutual Funds to have a Separate NAV for investors investing Directly. This Separate NAV will have a lower expense ratio a...
  • L&T takes over Fidelity....what should you do???
    You have Fidelity Funds....then read on...  L&T has taken over Fidelity Funds. The fund management team of fidelity will be there only ...

Categories

  • Awards
  • Best Fund to Invest
  • ELSS
  • FEES
  • Financial Planning
  • Fund Call
  • Gold ETFs
  • Gold/Silver
  • Insurance
  • Investment Advise
  • Learning
  • MF Lessons
  • Mutual Fund Advise
  • NFO
  • Opinion
  • Others
  • Seminar
  • SIP
  • Star performers
  • Tax Planning

Blog Archive

  • ►  2013 (14)
    • ►  December (1)
    • ►  November (1)
    • ►  October (1)
    • ►  September (1)
    • ►  July (2)
    • ►  June (1)
    • ►  May (1)
    • ►  April (2)
    • ►  March (1)
    • ►  February (1)
    • ►  January (2)
  • ►  2012 (13)
    • ►  December (1)
    • ►  November (1)
    • ►  August (1)
    • ►  June (4)
    • ►  May (1)
    • ►  April (1)
    • ►  March (2)
    • ►  January (2)
  • ▼  2011 (20)
    • ▼  December (1)
      • Infrastructure Bonds ARE Back in Action!!
    • ►  October (3)
    • ►  September (1)
    • ►  August (3)
    • ►  June (1)
    • ►  May (2)
    • ►  April (2)
    • ►  March (1)
    • ►  February (3)
    • ►  January (3)
  • ►  2010 (30)
    • ►  November (1)
    • ►  September (1)
    • ►  August (1)
    • ►  July (1)
    • ►  June (6)
    • ►  May (5)
    • ►  April (3)
    • ►  March (7)
    • ►  February (2)
    • ►  January (3)
  • ►  2009 (142)
    • ►  December (9)
    • ►  November (3)
    • ►  October (4)
    • ►  September (4)
    • ►  August (9)
    • ►  July (5)
    • ►  June (7)
    • ►  May (4)
    • ►  April (6)
    • ►  March (54)
    • ►  January (37)
Powered by Blogger.

About Me

Unknown
View my complete profile