LIC Infrastructure Bonds

Nov 21st, 2010No Comments

If you  are a tax payer then you can save more tax by investing in LIC Infrastructure Bonds.  Additional Rs.20,000 Tax Exemption under Section 80CCF.Moreover, LIC infrastructure bonds offer stability of fixed returns and are reasonably safe.

Highlights

  • Term: 10 years
  • Minimum lock in period: 5 years
  • Loan on Bond: After 5 years
  • Interest Rate: 7.85%-7.95% after tax.
  • Exit options: Buy back or through Demat account
  • Open for Individual or HUF.

Any individual or HUF can invest in LIC’s Infrastructure Bonds Between Rs.5000 – Rs.20,000/- This will be over the Rs.1 lakh deduction allowed under Section 80C.

Tax Benefit example:
If you are in highest tax payers bracket of 30% can save an additional Rs 6,000 and if you happen to fall in the lower tax bracket then you can still save Rs.2,000/- by investing in LIC infrastructure bonds this financial year.

LIC INFRASTRUCTURE BONDS  not only offers capital safety but also offers fixed returns through ECS.

Term:
The infrastructure bonds will have a maturity of 10 years and lock-in period of 5 years.

After lock in period is over, you can ask issuer (LIC) to buy back bonds Or you can trade these bonds in stock Exchange.

You should have a Demat account to invest in infrastructure bonds.This bond will boost the infrastructure projects in India and at the same time you will get tax benefit and good return. So help India grow.

LIC is expected to issue the infrastructure bonds with insurance cover to differentiate it from other infrastructure bonds.

Note:
The above is the product summary giving the key features of the Bond. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

How to Apply for LIC Infrastructure Bond?
The infra bonds from LIC are yet to be launched. Enter your Email below and we will update you once the bonds  are available:

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