IFCI Infrastructure bond last date extended till 12th January 2011

January 3rd, 2011  |  Published in Investment  |  1 Comment

The IFCI(Industrial Financial Corporation of India Ltd.) bonds are issued with section 80CCF benefits which means that they will get you a tax benefit of reducing your taxable income over and above the Rs. 100,000 under Section 80C with a cap of Rs.20, 000. So, lot of people are looking forward to investing in the same.

The issue has been rated “BWR AA” by “BRICKWORK RATINGS INDIA PVT LIMITED” which means that they are rated as instruments with high credit quality.

I opted for IFCI Infrastructure bond – 31st December, 2010 was the first deadline for this, I managed to submit all my documents and apply this in the nick of time. But for other who seemed to have missed out – there’s another chance, last date for IFCI Infrastructure bonds is extended till 12th January, 2011.

Things I looked before saving:

If you fall under 30% income tax slab – then if you invest 20,000 – you save directly 6,000 as income tax – For other slabs calculate accordingly

10% – 2,000

20% – 4,000

30% – 6,000

Add to this cumulative interest this fund is providing – With the Buy back option after 5 years – they are providing 8.25% as the interest rate.

So, Sum total will be 29,728 after 5 years.

So, total benefit will be (6,000(income tax) + 9,728(Interest)) ~ 15,728

Refer link for complete details: http://www.ifciltd.com/IFCIBonds/InfrastructureBonds/CurrentIssue/tabid/218/Default.aspx


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