Jaitly
1
Dear Mr Pankaj Batra,
Thanks for all the guidance given on various issues projected by me earlier.
Now I want to invest in bonds for saving Income Tax. Can you throw some light on what are the bonds available and its advantages so that I can take a decision on the matter.
With best regards,
CM Jaitly Air Cmde
In Feb 2010 budget, long term infrastructure bonds (u/s 80CCF) were announced which have investment period of 10 years with 8-8.5% rate of interest. After that there were 2-3 companies which issued these bonds in period from Oct 2010 till March 2011.
As done last year, companies like IDFC, IFCI etc will offer same this year too.
But keep in mind returns are taxable on these bonds and a separate 20,000 limit is provided above the normal 1 lakh 80-C tax saving investment limit.
If you want to invest within 80-C 1 lakh limit, tax saving fixed deposit for five years is better deal at this point as rate of interest is being offered around 9-9.5% (0.5 % extra for senior citizens).
