Infrastructure Development finance Company(IDFC) Ltd has come with infrastructure bond-tranche-1 issue for financial year 2011-12.This issue carries tax benefit u/s 80ccf maximum upto Rs.20,000/-.Summay and key points of this issue are as follows:
1.Issue Open Date: 21st Nov.2011.
2.Issue Close Date: 16th Dec.2011
3.Face Value: Rs.5000/- per bond.
4.Mode of hoding: Demat or Physical.
Interest Rates:
| Series | 1 | 2 |
| Interest | Payable annually | Cumulative |
| Interest Rates | 9% p.a. | 9% CAGR |
- Credit Rating: “AAA” From ICRA and FITCH.
- Registrar of Issue: Karvy Computershare Pvt. Ltd.
- Lock in period is five years from date of allotment.
- Buy Back facility is available.
- Buy Back Intimation period:The period begining not before nine months prior to buyback date and ending not late than 6 months prior to buy back date.
- Maturity value per bond on maturity for cumulative mode after 10 yrs: Rs.11840
Interest rate is only the changing factor from previous PFC and IFCI issues.Otherwise issue is identical.IDFC is offering 0.5% extra than previous issues and it will offer nearly Rs.700 more maturity value over period of 5 year per Rs.20000 investment.
How to Apply for IDFC Infrastructure Bonds:
1.Find a local dealer and submit application to him.
2.If you do not find anyone in your city,Send request of application form to me at email:ppdeshpande123@gmail.com .I can send you application form to your e-mail address.You can submit form in your city,if collection centre is available in your city.List of collection centres is available in application form.
3.I can provide the support in future if there is any problems related to the bonds.
Following documents are required to attach alongwith application form:
Physical mode:
1.Self attested address proof and self attested pan card.
2.Copy of cancelled cheque.Take a blank cheque and scratch it and write CANCELLED over it.It is required for verification of bank account no,MICR code and IFSC code by the registrar.
3.A/C payee cheque.
Demat Mode:
1.Self attested pan card.
2.AC payee cheque.
3.Properly fill DP ID/Client ID details.
For collection centres across Mumbai,Chennai And Banglore CLICK HERE
How would i get money at maturity as it is not yet credited to my account , i havent got any intomation on buyback as well, please help as nothing is clear as of now and could not trace any info to get money back
Can i applyfor idfc bond? Pl reply asap
No..It is closed on 5th march 2012.
Dear Sir,
I am interested in IDFC Bond & L&T Bonds but can i apply those bonds after closing date? pls reply urgently.
Hello Umesh,
Next series of L&T and IDFC will start from 11th and 10th Jan respectively.You can invest in it.
Sir,
I have applied for these bonds. My application number is 61013143. How to check the allotment status? I need to provide the tax receipt for submission to my company. Please help
Ashish
Hi,
I am planing to go with IDFC infra bonds by tomorrow(12/15/2011) through any one of the broker in Bangalore.Please let me know the HR letter from a MNC is considered for the current address proof or online HDFC bank statements is considered as current address proof?
If there is any change in current address , then how can we update it in that band? is there is there any risk to give temporary address(at least i will be in this address next half year)?
Your quick reply may help me a lot……
Thanks,
Harikrishna V
Hello,You can provide your bank account statement updated within last 3 months.
There will not be any harm if anyone give temporary address.Just do not forget to attch cancelled copy of cheque.so that maturity amount can be credited directly to your bank account through ECS.Also if there is any change in address,you can communicate to registrar with new address proof,,for detailed procedure take help of your broker.
Assuming I am buying 4 bonds of worth 20,000(cumulative option) – What will be the money i will be getting in hand after taxation etc?
Hello,
How can I purchase IDFC bond and what is the last date of issue?
Thanks in advance
You can contact local dealer.Last date is 16th Dec.
Hi,
I am not getting buyback option beginning and ending period and how nse and bse is involved here?
Your answer will be appreciable
Thanks in advance
Hi ,
Great effort indeed . Really thanks for the information .
Need few points to be cleared ASAP:
1. What would be the risk involved in buying the bonds.Looking at the portfolio how much loss we will have to sustain just in case we drop off the interest rate ?
2. As you have mentioned , is the money invested only in infra projects or even in market .Does the current sensex /nav going to affect the returns .
3. max 20, 000 per annum for min of 5 yrs . so that would make 1Laks as actual principal invested amount .Considering say 9 % compound interest rate how much amount would be gained ?
4. Plus any specific recommendations for infra bonds other IDFC or is the best ?
Sorry fairly new to the investment world and need to invest so your quick answer would be really appreciated .
Dear sir,thanks for your comments.
1.First of all,interest rate is fixed at 9%,interet rate risk is for them who trades these bonds on nse or bse.Bonds are apparently secured and carries highest AAA rating from rating agencies.
2.Capital raised through these issues are used for infrastructure finance only,,not invested in stock market.So no share market risk.
3. Its only one time investment of Rs.20,000/-.You can decide for next year depending upon taxation rules.Its not like that you need to pay for 5 yrs.
4.One can invest in this issue,,no problem even if invested in other issues like PFC,REC,L&T etc.
Hi,
The Tax for interest earned will be deducted at Source for this Infra Bonds?
If yes what will be the percentage.
Hi,No tax will be deducted at source for investment of Rs.20,000/-.
is there any proposal by LIC to issue infra bonds in this year 2011-12. can you confirm so that if no issue i can invest in present bonds
Govt have permitted LIC to launch infra bonds.But still there is no news about it.
I think that one can think of LIC for insurance purpose only,not as infrastructure finance company.
HI,
Thank you very much for your effort. Very informative for beginners.
Would request you to please clarify the following:
1. If four bonds (each Rs. 5000/-) is bought then the total amount of Rs. 20,000/- can be exempted from tax (Over and above 1lac of 80c). Please confirm.
2. In case of investment for tax benefit, which is the best option – Interest paid annually of cumulative? Whether such interest is taxable?
3. Is the amount on maturity taxable?
Appreciate your early response.
Thanks Much!
Sir,Thanks for appreciation.
1.Tax benefit is for Rs.20000/- ,,above Rs. 1 Lakh.
2.I would prefer cumulative option as capital invested is not big enough.and I will not able to do anything enough from interest earned annually.
3.Interest earned is taxable.Then also it is beneficial in comparison with other debt products like fixed deposits.Currently SBI offers 9.25% rate of interest.After tax ,,returns comes to be 6.25% for 30% tax bracket.
While for infra bonds,even if we cancel out tax saved for tax paid,we are getting 9%.as a tax free.returns.
When will the application form be made available for download online? (As done by IFCI). Are there any links? Or forms are available only hard copy format from dealers.
I also need to check it.
hi, So in comparison to IFCI and PFC, IDFC has a better Credit rating. Will you recommend IDFC in comparison to IFCI and PFC ? Its another 5 days for a new IDFC issue…
In my opinion,tax saving is a sole purpose of investing in theses bonds.Half percent higher or lower interest rates do not create much difference for Rs.20,000/-.So whether its IDFC,PFC,IFCI or LIC it will not have a much difference.