Long term infrastructure bonds from 'POWER FINANCE CORPORATION' - Issue Open

Long term infrastructure bonds by Power Finance Corporation, A Government of India Navaratna Company, registered with RBI as NBFC is open from 29.9.2011 and will close on 4.11.2011.

• Issue size is Rs.200 crores with an option to retain oversubscription upto Rs.6,900/- crores.
• Tenure of the bonds is 10 and 15 years with lock-in of 5 and 7 years.
• Minimum investment of Rs.5000/- and in multipels of Rs.5000/-, No maximum limit.
• CRISIL rating of "AAA/Stable and "AAA with stable outlook from ICRA.
• Tax benefit under Sec. 80CCF for amount upto Rs.20,000/- only.
• Bonds available in Physical as well as Demat form.  No TDS on interest if applied in Demat form.

For further details:
http://www.pfcindia.com/WhatsNewDetail.aspx?wtsid=52

NOTE:

In terms of the notification, the bonds are classified as ‘long term infrastructure bonds’, having benefits under section 80CCF of the income tax act. In accordance with section 80CCF of the income tax act, the amount, not exceeding Rs.20,000, paid or deposited as subscription to ‘long-term infrastructure bonds’ during the previous year relevant to the assessment year beginning April 1, 2012 shall be deducted in computing the taxable income of a resident individual or HUF. In the event that any applicant applies for the bonds in excess of Rs. 20,000, (including long term infrastructure bonds by any other eligible entity) the aforestated tax benefits shall be available to such applicant only to the extent of Rs.20,000.