{"id":2964,"date":"2012-12-23T11:02:53","date_gmt":"2012-12-23T05:32:53","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=2964"},"modified":"2014-06-20T09:26:17","modified_gmt":"2014-06-20T03:56:17","slug":"iifcl-tax-free-bonds-dec-2012-review","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/iifcl-tax-free-bonds-dec-2012-review\/","title":{"rendered":"IIFCL Tax Free Bonds &#8211; Dec 2012 &#8211; Review"},"content":{"rendered":"<p style=\"text-align: justify;\">After Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) Tax Free bonds, India Infrastructure Finance Company (IIFCL), another Government-controlled company, is issuing tax-free bonds between December 26 and January 11.<\/p>\n<h3 style=\"text-align: justify;\">IIFCL Tax Free Bonds &#8211; Significant Points:<\/h3>\n<ul style=\"text-align: justify;\">\n<li><strong>Offer Period:<\/strong> December 26, 2012 \u2013 January 11, 2013 (the offer can be pre-closed on full subscription)<\/li>\n<li><strong>Annual Interest Rates for Retail Investors:<\/strong>\n<ul>\n<li>7.69% for 10 Years<\/li>\n<li>7.86% for 15 Years<\/li>\n<li>7.90% for 20 Years<\/li>\n<li>The interest rates are 0.5% less for HNIs, QIBs and corporate subscribers.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Price of each bond:<\/strong> Rs 1000<\/li>\n<li><strong>Minimum Investment:<\/strong> 5 Bonds (Rs 5000)<\/li>\n<li><strong>Max Investment Limit for Retail Investor:<\/strong> Rs 10 Lakhs<\/li>\n<li><strong>Reservation:<\/strong> 40% reserved for retail investors<\/li>\n<li>Allotment: First Come First Serve<\/li>\n<li>Listing: Bonds would be listed on BSE and will entail capital gains tax on exit through secondary market<\/li>\n<li><strong>Step Down Clause:<\/strong> The bonds will come with a step-down clause, according to which only the original allottee, who has subscribed under the retail category will receive the coupon of 7.69% &#8211; 7.90% depending on tenure. On sale or transfer, the benefit is lost and rates reduce to that applicable for other investors (7.19 per cent for 10-year bonds, 7.36 per cent for 15-year bonds and 7.4 per cent for 20-year bonds).<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\">Why you should invest?<\/h3>\n<ol style=\"text-align: justify;\">\n<li>IIFCL is offering bonds with tenure of 20 Years with 7.9% interest rate. This is the highest so far<\/li>\n<li>The bonds are secured to the full extent and have the highest credit rating (AAA)<\/li>\n<li>The interest rates on future tax free bonds might be lower as RBI might moderate its policy rates from January 2013<\/li>\n<\/ol>\n<h3 style=\"text-align: justify;\">Why you should not invest?<\/h3>\n<ol style=\"text-align: justify;\">\n<li>The interest rate offered by PPF is 8.8% tax free. You should exhaust your maximum PPF limit of Rs. 1 Lakh before you look for tax free bonds<\/li>\n<li>If you are not in higher tax slab of 20% or more<\/li>\n<\/ol>\n<h3 style=\"text-align: justify;\">Who should apply?<\/h3>\n<p style=\"text-align: justify;\">As for most tax free bonds, <strong>these are good for investors in high income tax bracket of 20% and 30%.<\/strong> Today the maximum rate offered by bank fixed deposit is 9.5%. This translates into a post tax return of 7.82% for 20% tax slab and 6.8% for 30% tax slab. This is lower than IIFCL\u2019s 15-year and 20-year bonds.<\/p>\n<p style=\"text-align: justify;\">Along with the above, it suits investors who want regular income from interest payment and have low risk profile.<\/p>\n<figure id=\"attachment_2965\" aria-describedby=\"caption-attachment-2965\" style=\"width: 501px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-2965 \" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/12\/IIFCL-Tax-Free-Bonds.png\" alt=\"IIFCL Tax Free Bonds\" width=\"501\" height=\"825\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/12\/IIFCL-Tax-Free-Bonds.png 501w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/12\/IIFCL-Tax-Free-Bonds-182x300.png 182w\" sizes=\"(max-width: 501px) 100vw, 501px\" \/><figcaption id=\"caption-attachment-2965\" class=\"wp-caption-text\"><strong>IIFCL Tax Free Bonds &#8211; Dec 2012<\/strong><\/figcaption><\/figure>\n<h3 style=\"text-align: justify;\"><strong>About IIFCL:<\/strong><\/h3>\n<p style=\"text-align: justify;\">IIFCL is among the major financiers to various infrastructure projects in the country. As on March 2012, it had disbursed loans of Rs 22,543 crore.<\/p>\n<p style=\"text-align: justify;\">The company has been consistently profitable since its establishment in 2006, and its consolidated profit in FY-12 doubled over the previous year to Rs 678 crore. It did not have any non-performing advances in FY-12.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) Tax Free bonds, India Infrastructure Finance Company (IIFCL), another Government-controlled company, is issuing tax-free bonds between December 26 and January 11. IIFCL Tax Free Bonds &#8211; Significant Points: Offer Period: December 26, 2012 \u2013 January 11, 2013 (the offer can be pre-closed on full subscription) [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4923,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[31,30,340],"tags":[1594,1595,1593,181,1597,1592,26,261,1596,341,1591],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/12\/IIFCL-Tax-Free-Bonds-Dec-2012-Review.png",574,340,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/12\/IIFCL-Tax-Free-Bonds-Dec-2012-Review-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/12\/IIFCL-Tax-Free-Bonds-Dec-2012-Review-300x177.png",300,177,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/12\/IIFCL-Tax-Free-Bonds-Dec-2012-Review.png",574,340,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/12\/IIFCL-Tax-Free-Bonds-Dec-2012-Review.png",574,340,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/12\/IIFCL-Tax-Free-Bonds-Dec-2012-Review.png",574,340,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/12\/IIFCL-Tax-Free-Bonds-Dec-2012-Review.png",574,340,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2012\/12\/IIFCL-Tax-Free-Bonds-Dec-2012-Review.png",120,71,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"After Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) Tax Free bonds, India Infrastructure Finance Company (IIFCL), another Government-controlled company, is issuing tax-free bonds between December 26 and January 11. IIFCL Tax Free Bonds &#8211; Significant Points: Offer Period: December 26, 2012 \u2013 January 11, 2013 (the offer can be pre-closed on full subscription)&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/2964"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=2964"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/2964\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/4923"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=2964"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=2964"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=2964"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}