Infrastructure Bonds : Is it worth investing?

q12345rt

Newbie
[OP]
Regulars
Aug 17, 2011
97
1
I feel its not worth the pain. Even if we take 30% income tax slab, difference in the end will be hardly 1-1.5% compared to FD. Am I missing something?--EditAfter searching for sometime I could decide on itIf I invest Rs. 20000 in Infrastructure bond after 10 years I will get Rs. 47347 (9 % cumulative, pre-tax)If I don't invest, I need to pay tax of Rs.4000 (assuming 20% tax slab) and invest remaining Rs. 16000. To get Rs. 47347 after 10 years, my investment should give returns @ 11.5%So, finally I decide to buy these bonds.
 

maniaco

Regulars
Regulars
Jun 6, 2008
5,697
190
Bengaluru
I feel its one of the safest investment you can have.And If am not wrong, FD's are taxable and Bonds are not.
 

soodgautam

Jolly Blunt Roadrunner
Regulars
Feb 11, 2011
818
0
1) This is over and above 1 Lac in 80C (this is 80 CCCF) - so additional Tax Saving2) Redemption is tax free3) Interest rates are at all time high - just go for it :)There are CA on our forum who can explain this better - but to any salaried person this is a NO BRAINER - JUST GO FOR IT
 


q12345rt

Newbie
[OP]
Regulars
Aug 17, 2011
97
1
Interest earned on Bonds are taxable (same as FD). If they are purchased using DEMAT account, there is no TDS.

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Finally decided to but these bonds. Updated first post
 

Jaymin

A Big Fan of IBF
Regulars
Oct 18, 2010
10,009
6
To save tax, this is a good option after all! But do make sure that the company whose bonds u get is really stable one!
 


Toocool

Addicts
Apr 2, 2007
5,125
66
well most companies are stable these days,rec, l&t, ifci(govt controlled),i bought ifci btw, highest interest and govt backed.
 

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