If it has been an agenda for you to save tax, than one can save an additional tax on Rs 20,000 by investing in infrastructure bonds. However drawbacks are that one gets locked in for a higher period and secondly at the fag end of the year the TDS has been deducted and now one need to claim the tax refund from income tax office which is itself a herculean task. This Rs 20,000 limit is over and above 1 Lakh limit. The above bonds screen shot is from IIFCL and issue closes on 04 Mar 2011.
Weigh the pros and cons as amount invested in stock market for 5 years will yield more return than these bonds held for 10 years. Make your decision post deliberation.
