IDFC, SREI, REC, L&T Infra, IFCI, PFS infrastructure bonds tax saving u/s 80CCF
Have you heard of Infrastrucure bonds? Tax payers can save tax upto Rs. 6180 by investing in infra bonds worth RS. 20,000 u/s 80CCF deduction. Read further to know what are the companies offer such infra bonds.
Welcome to the investors. This article will help you to take the right decision on your investments front and ensures to save considerable amount of money in the form of tax for the current financial year 2011-12. Looks interesting, Read further for more details. Best infrastructure bonds in market
IDFC, REC, L&T Infra, SREI Infra, IFCI and PTC India Financial are the Non-Banking Financial companies, offering infrastructure bonds to the Indian investors to save their tax. The investment in these infrastructure bonds upto Rs. 20,000 will be considered for tax deduction u/s 80CCF which is in additional to regular Rs. 1,00,000 tax deduction u/s 80C. 
Now, Your next question is, Which is best infrastructure bond Answer is simple, Just Check the interest rate, rating and buyback terms and compare them all, and finally make a decision. There is less chance of higher interest rate offers from any of the companies in this current financial year.How much you can save with infrastructure bonds ?
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Higher the tax bracket, maximum are the savings. Investors can save a maximum of Rs. 2060, Rs. 4120 and Rs. 6180 with tax bracket of 10%, 20% and 30% respectively u/s 80CCF deduction. IDFC (Infrastructure Development Finance Company)
SREI (SREI Infrastructure Finance Ltd)
REC (Rural Electrification Corporation)
L&T Infra (L&T Infrastructure Finance Company)
IFCI (Infrastructure Finance Company)
PFS (PTC India Financial Services)
Taxability on Interest Earned
Interest earned on these infra bonds is considered as other sources of income in the hands of tax payer and is fully taxable.
Last word:
All the companies offers buy back facility after completion of 50% of the actual tenure of the bonds. It's a flexibility to the customers, say, after finishing 5 years tenure, If the interest rates in the market is less, then investor can opt to continue investing in infra bonds till its maturity. If interest rates in the market are more than interest rate on the bonds, you can sell of your bonds and reinvest your returns in any other form for better returns.
Conclusion:
The best opportunity to save tax for a tax payer is investing in infrastructure bonds in addition to regular Rs. 1,00,000 tax deduction. Suggesting not to wait till the last minute