{"id":679,"date":"2011-10-05T13:53:19","date_gmt":"2011-10-05T13:53:19","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=679"},"modified":"2012-02-16T13:29:02","modified_gmt":"2012-02-16T13:29:02","slug":"invest-in-pfc-infrastructure-bond-to-save-tax","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/invest-in-pfc-infrastructure-bond-to-save-tax\/","title":{"rendered":"Invest in PFC Infrastructure Bond to save tax"},"content":{"rendered":"

\"PFC_infrastructure_bond<\/a>There has been a series of Infrastructure launches one after the other. First in 2011\u00a0was IFCI <\/a>and now its Power Finance Corporation (PFC) Infrastructue Bonds. You can invest in the same upto Rs. 20,000 to save tax. Below are the details of the same.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Rating<\/td>\n\u201cAAA\/Stable\u201d from CRISIL and \u201cAAA with stable outlook\u201d from ICRA<\/td>\n<\/tr>\n
Face Value<\/td>\nRs. 5,000\/- per bond<\/td>\n<\/tr>\n
Minimum Application<\/td>\nRs. 5,000\/- (i.e. 1 Bond)<\/td>\n<\/tr>\n
Issue Schedule<\/strong><\/td>\nIssue Open Date : September 29,2011<\/strong><\/p>\n

Issue Close Date : November 04, 2011<\/strong><\/p>\n<\/td>\n<\/tr>\n

Options for Subscription<\/strong><\/td>\n1<\/strong><\/td>\n2<\/strong><\/td>\n3<\/strong><\/td>\n4<\/strong><\/td>\n<\/tr>\n
Frequency of Interest Payment<\/td>\nAnnual<\/td>\nCumulative<\/td>\nAnnual<\/td>\nCumulative<\/td>\n<\/tr>\n
Coupon (% p.a.)<\/strong><\/td>\n8.50 % p.a. (Annual compounding) <\/strong><\/td>\n8.50 % p.a.<\/strong><\/td>\n8.75 % p.a. (Annual compounding)<\/strong><\/td>\n8.75 % p.a.<\/strong><\/td>\n<\/tr>\n
\u00a0Maturity Amount<\/strong><\/td>\nRs. <\/strong>5,000\u00a0<\/strong><\/td>\nRs. <\/strong>11,305\u00a0<\/strong><\/td>\nRs. <\/strong>5,000\u00a0<\/strong><\/td>\nRs. 17,596\u00a0<\/strong><\/td>\n<\/tr>\n
Tenor<\/strong><\/td>\n10 years<\/strong><\/td>\n10 years <\/strong><\/td>\n15 years <\/strong><\/td>\n15 years<\/strong><\/td>\n<\/tr>\n
Maturity Date<\/td>\nDecember 2021 (Tentative) – 10 years from date of allotment<\/td>\nDecember 2026 (Tentative) – 10 years from date of allotment<\/td>\n<\/tr>\n
Buyback option<\/td>\nYes<\/td>\nYes<\/td>\nYes<\/td>\nYes<\/td>\n<\/tr>\n
Lock-in period<\/td>\n5 years from the deemed date of Allotment<\/td>\n<\/tr>\n
Deemed Date of Allotment<\/strong><\/td>\nTo be decided<\/strong><\/td>\n<\/tr>\n
Issuance & Trading<\/td>\nBonds shall be issued both in dematerialised form and physical form. However, trading allowed only in dematerialised mode after the expiry of Lock-in Period of 5 years<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Should you invest in\u00a0PFC Infrastructure bond 2011?<\/span><\/p>\n

Rate of interest for PPF is 8% while in IFCI Bond you can lock-in your investment for 15 years at 8.75% interest. I think its the right time to invest in PFC Infrastructure bonds.<\/p>\n

Your returns would depend on the tax bracket you are. For details on the same Click here<\/a>.<\/p>\n