IDFC Infrastructure Bond Opening On January 17th 2011

IDFC Long Term Infrastructure Bond – Opening on January 17th 2011

There is a good chance to save for additional tax exemption under section 80CCF of income tax act. The IDFC (Infrastructure Development & Finance Company) issues the second batch of infrastructure bond. They wish to accumulate around 2930 crore through this bond. They know that the salary tax payers are more interesting to buy infrastructure bond right now so that they can claim an additional Tax Exemption of Rs. 20000 under section 80CCF more than that of Rs. 100000 under section 80C.
The bonds will be opened at the market from 17^th January, 2011 to 04^th February, 2011 and they allow an 8% return to investors in addition to the tax exemption under section 80CCF.
Recently banks are increased the interest rates and a Fixed deposit with 200 days or more can easily fetch an interest rate of 8% or more, even though the investors may be attracted with the section 80 CCF and may buy these bonds at least for the minimum requirement of Rs. 20000 to save tax of Rs. 2060, Rs. 4120 and Rs. 6180 respectively for the tax brackets of 10%, 20% and 30%. And this may be the last chance of saving tax under section 80CCF for the financial year 2010-2011.
There is an expectation in the market that the interest rate may increase more near about the end of January, 2010 and LIC is also planning to issue infrastructure bond with some attractive terms.
Whatever may be the reaction this is a good chance to tax payers, especially salaried tax payers, to get more tax exemption by investing Rs. 20000 in this IDFC infrastructure bond at this 11^th hour of tax finalization.

IDFC Infrastructure Bond