In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (“Income Tax Act”) to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly.
Fill following Box as required and download unique numbered application form for IDFC infa bonds
Long term infrastructure Bonds by IDFC
IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-term infrastructure bonds by IDFC in the nature of secured, redeemable, non-convertible debentures of the Company of face value of Rs. 5,000 each, having benefits under section 80 CCF of the Income Tax Act for an aggregate amount not exceeding Rs. 29,289.64 million (“Tranche 2 Bonds”) issued pursuant to the Prospectus - Tranche 2 dated January 4, 2011 (“Prospectus – Tranche 2”) (the “Issue”). These bonds have got rating of LAAA by rating agency ICRA and AAA (ind) by FITCH indicating a stable outlook.
Download Form from above
Rs 5000 per Bond
Minimum number of Bonds per application*
Two Bonds and in multiples of one Bond thereafter.
For the purpose of fulfilling the requirement of minimum subscription of two Bonds, an Applicant may choose to apply for two Bonds of the same series or two Bonds across different series.
Maturity Amount per Bond
10 years from the Deemed Date of Allotment
Yield on Maturity
8.0% compounded annually
Yield on Buyback
8.0% compounded annually
Date following 5 years and one day from the Deemed date of allotment
Rs. 5,000 per Bond
Rs. 10,800 per Bond
Buyback Intimation Period
The period beginning not before nine months prior to the Buyback date and ending not later than six months prior to the Buyback date
Tax adjusted yield to investors on Maturity
Tax adjusted yield to investors on Buyback
Invest in IDFC Bonds Today
- The bonds don't attract any TDS
- The interest accrued on the Bonds will be credited to the respective bank registered with the dematerialized account through electronic clearing service (“ECS”) on the due date for interest payments or where Bonds are held in physical form, interest accrued on the Bonds will be credited to the Bondholders whose name appear in the register of Bondholder maintained with IDFC or Registrar to the Issue through cheque, demand drafts or through ECS on the due date for interest payment
- The Bonds will be listed on NSE and BSE and can be traded after the 5 year lock-in period
- Investors can mortgage or pledge or hypothecate or mark lien over these bonds to avail loans only after the lock-in period.
- Investment in the Bonds can be made in dematerialized and physical forms
- An investor would need to provide his or her PAN card to invest in these Bonds.
- The Bonds will be issued only to resident Indian individuals (major) and HUFs
- An applicant may subscribe to both options but the minimum application under each option shall be one Bond i.e., Rs. 5,000
- Interest on the Bonds shall be payable on annual or cumulative basis depending on the series selected by the Bondholders
- Issue closing date is February 04, 2011
You can also subscribe to the Bonds in physical form by following these simple steps:
- Don’t fill up the dematerialized details in the application form
- Compulsorily provide the following three documents with the application form:
- Self-attested copy of the PAN card;
- Self-attested copy of a cancelled cheque of the bank account to which the amounts pertaining to payment of refunds, interest and redemption, as applicable, should be credited.
- Self-attested copy of the proof of residence. Any of the following documents shall be considered as a verifiable proof of residence:
- Ration card issued by the Government of India; or
- Valid driving license issued by any transport authority of the Republic of India; or
- Electricity bill (not older than 3 months); or
- Landline telephone bill (not older than 3 months); or
- Valid passport issued by the Government of India; or
- Voter’s Identity Card issued by the Government of India; or
- Passbook or latest bank statement issued by a bank operating in India; or
- Leave and license agreement or agreement for sale or rent agreement or flat maintenance bill; or
- Letter from a recognized public authority or public servant verifying the identity and residence of the Applicant.