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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

Coupon Rate:-

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.

Download form:

Fill in the details here – click here & you will get the forms via. email.

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