IDFC Infrastructure bonds & Income Tax Benefit

Issue Details	Issue Period	November 21, 2011 to December 16, 2011
Rating	"LAAA" by ICRA.
Face Value	5000
Subscription Amount	Minimum 10000 or 2 Bonds
Lock-in Period	5 years from the Deemed Date of Allotment
Buyback Option	Date falling five years and one day from the deemed date of allotment
Tax Benefit adjusted rate of returns (pre-tax) to Investors on Maturity
Tax Slab - 30.90%	15.2%	13.1%
Tax Slab - 20.60%	12.8%	11.5%
Tax Slab - 10.30%	10.7%	10.2%
Tax Benefit adjusted rate of returns (pre-tax) to Investors on Buyback
Tax Slab - 30.90%	19.1%	17.4%
Tax Slab - 20.60%	15.2%	14.2%
Tax Slab - 10.30%	11.8%	11.4%

Note: The TARR is calculated assuming a gross investment of 20,000 less the relevant tax benefit under Section 80CCF of the Income Tax Act, 1961 available to the investor (varying according to the tax rate applicable to the relevant investor) resulting in a net invested amount. The aggregate of annual or cumulative interest coupon and the redemption amount receivable by the investor, as applicable, discounted over time divided by such net invested amount leads to the TARR. Note: The TARR figures provided in the table above are representative only and are subject to the assumptions and qualifications made by the company in arriving at the above mentioned figures. The figures contained in the table ! above do not in any manner whatsoever constitute financial or tax advice or any recommendation to invest in the tranche 1 bonds. The figures are given as per the prevailing rates of taxation. The investor is advised to consider in his or her own case the tax implications in respect of subscription to the tranche 1 bonds. Investors must consult their tax and financial advisors before making any investments in the tranche 1 bonds. The company is not liable to the investor in any manner for placing reliance upon the contents for calculating TARR as mentioned in the table above.

Benefit of investment in Infrastructure bonds

You are able to get an income tax rebate of Rs 20000 and this limit is over and above your normal income tax rebates available in India. Moreover one gets 9% rate of interest which is good enough to beat inflation.

You can get more information about idfc infrastructure bonds and you can also understand the meaning of TARR which is stated as above as it is very important to understand the tax implications as saving tax is of primary importance. Do keep visiting the website to get the latest NSE tips which makes money for the day traders every day.