Guest Post: Last Opportunity [in 2011] to Invest in Infrastructure Bonds (Under Section 80CCF)

by Vinaya HS on December 22, 2011

in Finance

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The following is a guest post from reader Nikhil Shah and deals with the intricacies of investing in the soon to close investment opportunity in L&T’s Infrastructure Bond issue along with the income tax angle. Earlier this year, Nikhil had also put-up a detailed analysis of the previous L&T bond issue.

Dear All,

The year is coming to an end and it’s time to plan and invest for saving your income tax. Apart from your regular tax saving instruments eligible for deductions of up to Rs 1 lakh, there are long-term infrastructure bonds in the market. These infrastructure bonds are debt instruments wherein an investment up to Rs 20,000 is eligible for individual income tax benefits under section 80CCF.

The yields on Government Securities have been on a downturn in the recent past. Currently the 10 year G-sec is trading at around 8.31% which is 57 bps (basis points) lower than the October closing which was 8.88%. In other words, INFLATION is going down.

So you are requested to please grab this wonderful opportunity and invest in L&T Infra Bond issue which is currently running and closes on 24-Dec-2011. I’ve also created an investment analysis calculator which you can download from the link below.


Click to download a detailed analysis of L & T Infra Bonds.


Nikhil Shah

Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 5 comments… read them below or add one }

Vishwnath Rao December 22, 2011 at 10:30 AM

Thanks for the informative article, I would like to add that, Other than L & T, one of India’s oldest financial institution is offering Tax Saving Infrastructure Bond (Series IV). The Offer will stay open even after L & T closes it issue, IFCI remains open till 16th Jan 2012.
Comprehensive information for reader benefit is available on the blog

Vinaya H S December 22, 2011 at 3:28 PM


Will also ask Nikhil for a detailed analysis of the IFCI and REC issues.

nirjhar January 2, 2012 at 7:58 PM

Hi Vinaya,
Can you give some details on the procedure on buyback also .
As per IFCI website :
The buyback dates are :
Buyback Dates February 15 of the calendar years 2017 and 2019 February 15 of the calendar years 2017 and 2022

Whether does this mean ,we can only do the buyback only on thatdate ?
what if we forget ,whether there will be any option that ,say 1 month prior to the date ,there is some window where we can do the buy back .


Vinaya H S January 3, 2012 at 1:04 PM


The company will certainly intimate you as the buyback date approaches. You will then have a certain time window open for surrendering your holding.

Amit Surpuriya January 24, 2012 at 11:41 PM


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