What is infrastructure bonds 80C?

Section 80C of the Income Tax Act states that investments to the extent of Rs. 20,000 in infrastructure bonds qualify for income tax deduction, but the limit is over and above the Rs. 1 lacs deduction that individuals can claim under Section 80C as they are long-term secured bonds that mature in 10 to 15 years.

Is it good to invest in infrastructure bonds?

Infrastructure bonds are good for people who need a fixed income. They offer a decent rate of interest and tax benefits. The maturity of these bonds is often between 10 to 15 years with an option to buy-back after a lock-in of 5 years.

What is the interest rate on infrastructure bonds?

Most infrastructure bonds that have been launched have a coupon (interest rate) between 7.5 per cent and 8.25 per cent. The second series of bonds issued by IFCI, which concluded recently, had a coupon of 8 per cent with a buyback option after five years and 8.25 per cent with no buyback option.

How do I redeem IDFC infrastructure bonds?

Alternatively, you can reach out to Bank on Toll Free No.: 1800 266 0404 or send an E-mail at [email protected]. This Redemption of Tranche 2 – LTIBs shall be governed by the Terms & Conditions as set out in the Prospectus.

What is tax free bonds in India?

India Ratings and ICRA have assigned AAA to the tax-free bonds issued by the entity. The interest paid by tax-free bonds are exempt from income tax. Keep in mind that selling tax-free bonds in the secondary market attracts capital gains tax.

Which infrastructure bonds is best in India?

IFCI pays the highest interest amongst all of them. For a 10 year period, IFCI pays 9.09% while REC pays 8.95%, PTC India Financial pays 8.93% and SREI Infra Finance pays 8.9%. For the 15 year tenure, IFCI pays 9.16% while all others pay 9.15%.

Are IFCI bonds safe?

Is the investment safe? IFCI bonds have been rated BWR AA– by Brickwork Ratings India Pvt. Ltd and CARE A+ by CARE Ratings (Credit Analysis and Research Ltd). Rating agency ICRA Ltd has provided LA.

How do I buy infra bonds?

How to apply

  1. You can apply online to invest in an infrastructure bond, if you have a demat account.
  2. You require a demat account and a PAN to trade in infrastructure bonds.
  3. You can apply for these bonds in the physical form.
  4. These bonds have a maturity period of 10 years and a lock in period of 5 years.

What is RBI tax-free bonds?

(i) Income-tax: Interest on the Bonds will be exempt from Income-tax under the Income-tax Act, 1961. (ii) Wealth tax: The Bonds will be exempt from Wealth-tax under the Wealth- tax Act, 1957. (i) The Bonds will be issued at par i.e. at Rs. Subscription to the Bonds will be in the form of Cash/Drafts/ Cheques.

Which government bonds are tax-free?

Most tax-free bonds, which have been issued earlier and are now listed on NSE, BSE exchanges, are from government-backed institutions such as Indian Railway Finance Corporation Ltd (IRFC), Power Finance Corporation Ltd (PFC), National Highways Authority of India (NHAI), Housing and Urban Development Corporation Ltd ( …

How do I surrender my IDFC bond?

A request letter mentioning the bank details i.e. name of the bank, branch and account number duly signed by the Bondholder (in case of Joint holding, duly signed by the all the joint holders or the first Bond Holder) along with a copy of cancelled cheque be sent to the Registrar’s office at the below mentioned address …

How do you redeem physical bonds?

Redemption of Bonds The bonds are redeemed on the date of maturity on surrender of the duly discharged bond certificates (by signing on the reverse of the bonds with Revenue Stamp of Re. 1/-) by Registered bondholders. The record date for redemption is one month prior to the deemed date of encashment / redemption.