L&T Infra brings you Long-term Infrastructure Bonds that let you invest indirectly on a long-term basis in infrastructure projects across the country. As per section 80CCF of the Income Tax Act, you get a tax relief of up to Rs. 20,000 by investing in these bonds.
Your money invested in these bonds grows at a rate of 7.5% to 7.75% p.a. which works out as seen in the Table on the ‘About Investing’ Page. This interest, depending on the scheme you choose will either be paid to you every year, or can be compounded over the period of your tenure.
Here’s a defined structure of interest rates and tax deduction under these bonds.
You have 4 options you can pick and choose from as per your requirements.
You have 4 options you can pick and choose from as per your requirements.
The specific terms of the instrument:
| Series | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| Frequency of Interest | Annual | Cumulative | Annual | Cumulative |
| Buyback Facility | Yes | Yes | Yes | Yes |
| Buyback Date | First Working Day after 7 years from the Date of Allotment | First Working Day after 7 years from the Date of Allotment | First Working Day after 5 years from the Date of Allotment | First Working Day after 5 years from the Date of Allotment |
| Interest Rate | 7.75% p.a. | 7.75% p.a. compounded annually | 7.50% p.a. | 7.50% p.a. compounded annually |
| Maturity Date | 10 years from the Date of Allotment. | 10 years from the Date of Allotment. | 10 years from the Date of Allotment. | 10 years from the date of allotment. |
| Maturity Amount (Rs.) | 1,000 | 2,110 | 1,000 | 2,061 |
| Buyback Amount (Rs.) | 1,000 | 1,687 | 1,000 | 1,436 |
| Buyback Intimation Period | The period commencing from 6 months preceding the corresponding Buyback Date and ending 3 months prior to the corresponding Buyback Date | |||
| Yield of the Bond on Maturity* | 7.75% p.a. | 7.75% p.a. compounded annually | 7.50% p.a. | 7.50% p.a. compounded annually |
| * As per 80CCF Notification, the Yield of the Bond (to be paid by the Issuer) shall not exceed the yield on government securities of corresponding residual maturity as reported by the Fixed Income Money Market and Derivatives Association of India (FIMMDA), as on the last working day of the month immediately preceding the month of the issue of the bond. |
| The investment made in these bonds will be eligible for tax benefits under Section 80 CCF of the Income Tax Act, 1961. The Table below provides the yield to the investors on maturity (with tax benefits) and the yield to the investors on buyback (with tax benefits) for the applicable tax rates |
Instruments at a glance
| series | 1 | 2 | 3 | 4 |
|---|---|---|---|---|
| Face Value per Bond | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 |
| Interest / Coupon Rate Offered | 7.75% p.a. | 7.75% p.a. compounded annually | 7.50% p.a. | 7.50% p.a. compounded annually |
| Frequency of Interest Payment | Annual | Cumulative | Annual | Cumulative |
| Time to Maturity | 10 years | 10 years | 10 years | 10 years |
| Time to Buyback | 7 years | 7 years | 5 years | 5 years |
| Tax Rate | YIELD TO THE INVESTORS ON MATURITY (with Tax Benefits u/s 80CCF) | |||
| 10.30% | 9.38% | 8.93% | 9.11% | 8.67% |
| 20.60% | 11.29% | 10.26% | 11.00% | 10.01% |
| 30.90% | 13.58% | 11.81% | 13.25% | 11.55% |
| Tax Rate | YIELD TO THE INVESTORS ON BUYBACK (with Tax Benefits u/s 80CCF) | |||
| 10.30% | 9.86% | 9.44% | 10.23% | 9.86% |
| 20.60% | 12.31% | 11.36% | 13.42% | 12.58% |
| 30.90% | 15.23% | 13.59% | 17.20% | 15.75% |
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