In this year’s annual budget, Finance Minister had introduced a new tax saving deduction – Sec CCF. It was INR 20,000 for investment made into special infrastructure bonds.
Now, Infrastructure Development Finance Co (IDFC) has launched these bonds. The issue opens for subscription on Thursday, September 30, and closes on Monday, October 18.
I recommend it. I am no Tax Guru. I have 000 Patents in Finance. But here is my reasoning:
1. The tax deduction is over and above your 1 lakh deduction under Sec 80C.
2. The rate of interest is in the range of 7.5 – 8%. But the real return on the bonds is much higher, it you consider the tax deduction.
3. Rating agency ICRA has given the IDFC bonds an LAAA rating, which is the highest rating that an infra bond can get.
Though one can invest more than 20,000 in these bonds, one can claim tax deduction on a maximum of INR 20,000 only. But, Money saved is money earned. Another interesting reason to save !