IDFC has come out with its second tranche of infrastructure bonds. It will be open for subscription from January 17, 2011 till February 4, 2011. The issue size is little below Rs. 3000 crores. This time the options available are reduced to 2 as against the last time when 4 options were available. This issue is similar to Series 1 and Series 2 of IDFC First Tranche Issue offering 8% interest rate for a period of 10 years with a buy back option at the end of 5 years. Upto Rs 20,000 invested in these bonds is eligible for deduction while computing taxable income under section 80CCF of the Income Tax Act. This is over and above Rs. 1,00,000 benefit available under section 80C.
To read more about these bonds, refer to the earlier posts on IDFC Bonds - First Trance Issue (here & here). Please note that option of Series 3 and Series 4 is not available this time.
This is a good time to invest in tax-savings infrastructure bonds for those who have not yet made the investment in earlier issues of IDFC, IL&FS and L&T Infrastructure.
To clear your doubts on the mystery of high tax-adjusted yields advertised by these companies, do read this article on whether such yields are really true?
