IDFC Ltd. will offer the second tranche of its tax free infrastructure bond from January 17, 2011. IDFC Ltd is planning to collect Rs 2930 by February 4, 2011 – as per an article in Economics Times.
Investment in IDFC Infrastructure Bond is exempt from income tax under section 80CCF of Income Tax Act, 1961. The exemption is over and above Rs 1,00,000 exemption under section 80C. The bond
has face value of Rs 5000, and is aimed towards retail investors. Tax exempt nature of infrastructure bond increases the effective return making it especially attractive to investors in the highest tax bracket. IDFC had collected 436 crores from about 2.35 lakh applications in the first issue of this bond last year.