IFCI is offering Long Term Infrastructure Bonds – Series 1.
This issue is open till 31st August 2010.
Investments upto a maximum of Rs.20,000 in this is eligible for deduction u/s 80CCF for the Financial Year 2010-11. An Individual or HUF can avail of this benefit in addition to the limit of Rs.1 Lakh u/s 80C.
The details are as follows:
· The tax benefit would be limited to a maximum of Rs.20,000 although the investor can invest any amount
· The tenure of the bonds is 10 years. However, the lock-in period is 5 years if the investor chooses the buy-back option.In case the investor does not opt for buyback, the principal amount would be refunded back after 10 years, i.e. September 15, 2020
· The bonds will be listed on BSE. It can be sold after a minimum holding period of 5 years.
| Options | I | |
| | Buyback/Non-Cumulative | |
| Minimum Amount/FV (Rs) | 5,000 | |
| In Multiples of (Rs) | 5,000 | |
| Buy-back Option | Yes | |
| Interest Payment | Yearly | |
| Coupon | 7.85% p.a. | |
| Yield on redemption | 7.85% | |
| Coupon Payment Date | Sep.15 every year | |
| Redemption Date | Sep.15,2020 | |
| Buy-back period | Every year between Aug.16 to Aug.31,starting from the year 2015 till 2019 | |
| II | III | |
| Buyback/Cumulative | Non-buyback/Non-Cumulative | |
| 5,000 | 5,000 | |
| 5,000 | 5,000 | |
| Yes | No | |
| NA | Yearly | |
| 7.85% comp. annually | 7.95% p.a. | |
| 7.85% | 7.95% p.a. | |
| NA | Sep.15 every year | |
| Sep.15,2020 | Sep.15,2020 | |
| Every year between Aug.16 to Aug.31,starting from the year 2015 till 2019 | NA | |
| IV | |
| Non-buyback/Cumulative | |
| 5,000 | |
| 5,000 | |
| No | |
| NA | |
| 7.95% comp. annually | |
| 7.95% p.a. | |
| NA | |
| Sep.15,2020 | |
| NA | |
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