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Friday, February 11, 2011

L & T Infra's Long Term Infrastructure Bond : 2011A Series, Interest Rate, Procedure to Apply, Features & Benefits, Tax Exemption Under Section 80 CCF



L&T Infrastructure Finance Company Limited (LTIFCL) has came up with its second series of Long Term Infrastructure Bond . The said scheme is eligible for tax deduction under section 80 CCF of the Income Tax act, 1961 .

Last year in the budget the Government approved issuance of long term tax-free bonds under Sec 80CCF of the Income Tax Act for tax-saving investments for additional Rs. 20,000, over and above the Rs. 100,000 limit earlier to boost up the Infrastructure activities in wake of fund shortage in Infra sector.

L&T Infrastructure Finance Company or LTIFCL is offering two option for investment :-

  1. Series 1: 8.20% annual coupon paying 10 year Bond with a Buyback option at the 5 years and at the end of 7 years.
  2. Series 2: 8.30% cumulative coupon paying 10 year Bond with a Buyback option at the 5 years and at the end of 7 years.

Both the scheme has buyback option which makes it attractive over the other current ongoing offers.

Offering : The issue will open on Monday, 7th February 2011 and closes on Monday, 7th March 2011 .

LISTING and Trading : There is a proposal to list L&T Infra Bond – 2011A Series on NSE , however trading will only allowed after 5 year of completion and will be only for DEMAT mode applicant only.

TAX Saving : On a investment of Rs. 20,000/- a person with higher tax liability can saves tax upto Rs. 6,180/- with an interest as a bonus of Rs. 1640/ per year (8.2% on Series I, as in this option Interest will be dispatched each year) .

Scheme Benefit : The Infra Bond scheme is beneficial for them who already availed the tax benefit of Rs. 1,00,000/- (One lakh) under the various tax-saving instruments Under Section 80C, 80CCC, 80CCD.

Frequency of Interest :

Series 1 : Annually i.e. the amount of interest will be paid on yearly basis.

Series 2 : Cumulative i.e. the amount of interest will be paid at the time of maturity (10 years) or Buyback (5/7 Years) , as applicable.

Buy Back Amount :

Series 1 : Rs. 1,000/- at the end of 5 Year & Rs. 1,000/- at the end of 7 Year.

Series 2 : Rs. 1,490/- at the end of 5 Year & Rs. 1,748/- at the end of 7 year.

Maturity Amount :

Series 1 : Rs. 1,000/- at the end of 10 Years.

Series 2 : Rs. 2,220/- at the end of 10 Years.

11 comments:

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Neera said...

How can I check my interest on 2011A series bonds

Unknown said...

How can check current status & what is payment processing please reply me on my email id

Unknown said...

How can submit kyc

Unknown said...

Please send address for submit kyc

Unknown said...

Please send address for submit kyc

Mahendra Dhimate said...

How can I check my bond status of 2011 Series1

Unknown said...

Where to send physical bond on maturity
For payment receipt

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