IIFCL Tranche 3 Tax-free bonds open for subscription
India Infrastructure Finance Co. Ltd. (IIFCL) is a Government of India enterprise which is involved in providing long term financial assistance to various infrastructure projects.
IIFCL has come up with an issue of tax-free bonds. Trance 2 of IIFCL was oversubscribe within one day in the month of Dec 2013. Tranche 3 the issue size is of 750 crores and can retain over-subscription of 2823.79 crores.
Issue opens – 17th Feb 2014
Issue closes – 14th March 2014
Face value of the bonds: Rs 1000 each and one should make a minimum application of 5 bonds i.e. Rs 5000.
Mode of allotment: Physical and DEMAT
For Non-Retail (Category I, II & III)
8.16% p.a. For 10yrs,
8.55% p.a. For 15yrs & 20yrs
For Retail (Categoty IV):
8.41% p.a. For 10 yrs
8.80% p.a. For 15 yrs & 20 yrs
Should you subscribe?
Yes one can consider investing in these bonds as the yields are high compared to post tax yields of a corporate deposits.
Income from these bonds in form of interest is fully exempted from income tax. Also it attracts no TDS. Capital gains are taxable.
Fill in the details here – click here & you will get the forms via. email.