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FinTip – Top 3 Reasons To Buy IDFC Bonds

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 !

4 Responses

  1. LAAA rating sounds good. I learned that it has 10 years maturity and 5 years locking period. Is it one time investment or we can invest multiple times (in an year)?

    • admin
      | Reply

      It is one time investment. Issue closes in mid-oct. Of course, other companies will come with similar products.

  2. how can i buy these bonds…

    • Hi – If you have online account like ICICIDirect, ShareKhan – you can buy it online directly. Or contact your nearest bank: HDFC Bank, AXIS Bank, IDBI Bank, ICICI Bank, KOTAK Bank, CITIBANK Bank, INDUSIND Bank, DHANALAXMI Bank Branch.

      Queries :

      Contact IDFC Team:
      Darshana Thanawala – 022-4342 2860 Ext 22860
      Pooja Pawar – 022-4342 2887 Ext 22887
      Pooja Panchal – 022-4342 2849 Ext 22849

      Email : IDFC_StockBroking@idfc.com

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