This calendar is for last year’s bonds, and you need to go here to look at the 2011 80CCF Infrastructure Bond Calendar.
A lot of you are interested in the next infrastructure bond issue, which helps save tax under section 80CCF, and since I didn’t find any consolidated information anywhere I thought I’d create this post with a list of the infrastructure bond issues that are expected to come out in the market in the next few months.
This was also triggered by the fact that ICICI Direct has started offering the IFCI Infrastructure Bonds series – II already, and it looks like these bonds will be available till December 31st 2010.
I couldn’t find their prospectus, and the page on their website that should hold details about the issue is actually blank! So I don’t have a lot more details right now, but will write a post once I get more details.
Here are the bond issues that I’m aware of.
| S.No. | Name of the issuer | Expected Time Frame |
| 1 | REC | January 12th 2011 – March 31st 2011 |
| 2 | IDFC | Issue re-opens on January 17th 2011 |
| 3 | IIFCL | Feb 4 2011 – Mar 4 2011 |
| 4 | L&T Infrastructure Bonds |
Second tranche in February- |
| 5 | Power Finance Corporation (PFC) | |
| 6 | IFCI | November 16 2010 – January 12th 2011 |
| 7 | LIC | There are reports that this issue may not happen this year. |
If you know of any other please leave a comment and I’ll update the post.
My Income is Rs 400,000/- and I have invested Rs 100,000/-. Can I claim Rebate u/s 80ccf and 88 r 87 A of Rs.100000/-?
I guess, even if company deducts TDS, it will deduct @ 10% & issue a TDS certificate. If one is
in higher slab of income, he/she will need to pay tax at higer than 10% & TDS certificate will
prove that 10% is already paid.
Thanks. I contacted IDFC & suggested me to contact Karvy Consultants. Karvy sent me a
Interest Advice by E-mail & informed that it has been posted on 28-2-2012 to my address. I guess, I will receive this within next few days. Best regards, RAKESH
Sorry for my earlier post as Mr. Shiv Kukreja has already answered my query. Thanks to Mr. Kukreja. The only question remains is why company has not sent the Interest certificate? I sent an E-mail to them in this regard but received no reply.
Hi Mr. Rakesh.. I think it depends from co. to co. whether they send it or not. I dont know what is the use of these interest certificates. After all one needs to pay tax on the interest income and also there is no TDS. If the interest income is more than Rs. 2500 and the co. deducts required tax at souce, then the co. is bound to issue Form 16A to the investor.
I received interest on Infra Bonds purchased last year from IDFC. Do I have to pay tax on this interest? Company has sent no Interest certificate. How do I pay tax without this certificate as I have no proof for interest amount except account statement showing interest entry. Kindly suggest.
Hi Mr. Jain.. You just need to pay the tax on the interest received as per your tax slab. As there will be no TDS on the interest earned, there will not be any Form 16A issued to you. But these cos. do intimate the investors when the interest is paid through their own means of communications.
I guess the interest earned on Infra Bonds is taxable? Should the companies issue the Interest certificate for tax purposes? If not, how do we pay tax on the interest credited to the SB A/C?
Best regards, RAKESH
Hi Manshu,
Thanks for providing info on upcoming bond market calendar. New to this whole asset class, and wish to know few things… I have searched for SBI bonds 9+% NCDs and found them trading at premium 10k bond trading at 11.5k etc.. Every march, the bank credit interest as per int %.
My question to you is, If I buy these bond (SBINN3 NSEcode) from secondary market now by paying say…11.5k each, who will get interest for the current year, will I or the seller as he held it for almost one year.
Hi Sunieta.. the holder of these bonds on the record date, say it is March 18th, 2012, will get the interest paid on April 2nd, 2012. You are paying a higher price for these bonds as compared to their face value of Rs. 10,000, so you deserve to get the interest as well. The seller of these bonds, who will not get any interest after selling the bonds before the record date, will get a higher price to get compensated.
Thanks Shivji for the reply.
I have a follow up query, If I buy in demat form as is the case here, how SBI knows my bank account number to credit interest?
I understand if I buy in NFO stage, I fill all details in subscription form and hence bank has my records.
But for purchasings in secondary market, how is my details are updated? Do they update instantly or is there a possibility they take longer time enough to credit the interest in sellers bankacct instead of the buyers’ ? Sorry if I sound too immature but… not sure how these psu banks take care of such
:-).. No need to feel sorry about it, it is perfectly fine.. If you’ve any Demat A/c. with you, you must have held some shares in it. Like dividend on shares is credited to the default Bank A/c. which is linked to one’s Demat & Trading A/c., interest income earned on SBI bonds (or for that matter any kind of bonds/securities) gets credited to the same Bank A/c.
If you’ve your HDFC Bank A/c. linked to your Demat A/c. & you apply in an NFO filling the details of your ICICI Bank A/c., you’ll still get all the dividends/interests in your HDFC Bank A/c.
these have been extended:
Company Closure Date Lock In Period 10 Years 15 years
IDFC 05.03.2012 5 years 8.70% NA
L&T 12.03.2012 5 years 8.70% NA
SREI 06.03.2012 5 years 8.90% 9.15%
PFS 16.03.2012 5 years 8.93% 9.15%