Contribute towards India’s growth by investing in Infrastructure Bonds.
The Government as well as the government authorised infrastructure projects borrow funds for operation of infrastructure projects and its development. Such bonds are known as Infrastructure bonds. Infrastructure funds offer a modest rate of interest and tax benefits. The government announces a list of infrastructure bonds from time to time. Section 80 CCF of the Income Tax Act offers tax deduction when you invest in these infrastructure bonds.
Most of the infrastructure development projects are operated under the guidance of the government. But, there are many instances wherein certain worthwhile infrastructure projects haven’t been undertaken due to the scarcity of funds. This is when the Indian government issues bonds for mobilising funds for these projects.
• You should be an Indian national or a HUF • You should be above 18 years of age to invest in Infrastructure bonds. • Each individual is permitted to submit just one application since multiple applications could be combined based on the PAN • Allows tax benefits on investments up to Rs.20,000. You can however, hold the bonds in a dematerialized or a physical form. • The minimum amount of Rs.5,000 can be invested in infrastructure bonds. • You are eligible to trade with these infrastructure bonds only post completion of the lock-in period of 5 years.
• If you belong to a fixed income category, the best investment avenue would be tax saving infra bonds . • These infrastructure bonds are long-term secure bonds that usually matures in 10-15 years. • You automatically enhance the growth of India’s infrastructure by investing in such bonds • With a usual lock-in period of 3 years, you can receive decent returns by contributing towards India’s infrastructural growth. • There are certain firms that offer you free insurance as an additional benefit if you purchase infrastructure bonds from them
You can also trade on such bonds on stock exchanges
No, the interest that you receive by investing in an infrastructure bonds aren’t tax free and you will be liable for paying tax on the interest that you receive. The interest amount is added to the income and taxed according to the tax bracket of the investor.
The lock-in period for investing in an infrastructure bond is 5 years and the maturity is 10 years.
No, you cannot pledge these bonds in the first 5 years, post which you can avail a loan facility by pledging your infrastructure bonds.
Contribute towards India’s infrastructural growth by investing in Infrastructure Bonds.
An Infrastructure bond is typically funded by governments, companies financing infrastructure projects, etc. for raising funds to be utilized for the development of infrastructure of a country.
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