NAWAP Started The Discussion:
CBDT has notified New Infrastructure Bonds u/s 80CCF. An Individual or HUF can invest in these new infrastructure Bonds up to Rs.20000/- in a financial year.
- This bonds will be called “Long Term Infrastructure Bond”
- New section can be availed by Individual or HUF only.
- Only Rs.20,000/- can be invested in a Financial year to avail deduction under section 80CCF
- Rs.20,000/- limit is in addition to 1,00,000/- limit of section 80C, 80CCC, 80CCD
- Tenure of the Bonds will be 10 Years.
- The minimum lock in period for an investor shall be five years.
- After 5 years investor may exit either through the secondary market or through a buyback facility, specified by the issuer in the issue document at the time of issue.
- Permanent Account Number is must to apply these bonds.
- Yield of the bond – The yield of the bond shall not exceed the yield on government securities of corresponding residual maturity, as reported by the Fixed Income Money Market and Derivatives Association of India (FIMMDA), as on the last working day of the month immediately preceding the month of the issue of the bond
Posted 19th August 2010 From India , Delhi
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