 Who are the eligible investors?
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Only Resident individuals and HUF can invest in these bonds.
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What is the Tax benefit of investing in IFCI Infrastructure Bonds?
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The Tax exemption benefit on a sum of Rs. 20,000/- u/s 80CCF is over and above Rs. 100,000/- benefit under section 80C, 80CCC and 80CCD
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What is the Tax Treatment on Interest of these Bonds?
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The interest received on these bonds shall be treated as income from any other source and shall form part of the total income of the assessee in that financial year in which they are received.
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What is the maximum amount for which the benefit u/s 80CCF be availed?
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Maximum benefit to an investor shall be Rs. 20,000/- under section 80CCF of the Income Tax Act, 1942.
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What would happen if the client applies for more than Rs. 20,000/-?
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The allotment shall be made for the sum applied. However, the benefit under section 80CCF may be availed for a maximum sum of Rs. 20,000/- only.
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Can a Minor apply for subscription to these bonds?
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A minor is not eligible to apply for subscription to these bonds.
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Can a client apply in joint names?
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Yes application can be made in joint names but the tax benefit may only be availed by the first applicant.
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Who would get the Tax Benefit & interest in case of the joint application?
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In case of joint application the Tax Benefit & Interest shall belong to the first applicant only.
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Can a client invest in more than one option?
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Yes an applicant may subscribe to all the four options but the minimum application under each option shall be Rs.5000/-
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What is the tenure & lock-in period of these Tax Free Infrastructure Bonds?
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The maximum maturity period of these bonds shall be 10 years. However, there shall be a buy back option at the end of 5th year onwards. After the end of 5th year, the issuer shall have the option to buy back the bonds. The Investor has to opt for the desired option at the time of applying for the Bonds.
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