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Extra 20000/- Deduction?

Sonia Verma (state govt employee) (347 Points)

14 October 2010

Can anybody tell me abt the Instruments, by which one can avail the extra 20000 deduction, over and above the 80C investments??

Thanks

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2 Replies

vkbothra (Learning ) (690 Points)
Replied 14 October 2010

Interest Earned on this Bonds is taxable ,however TDS is not applicable .

IFCI Tax Exemption Long Term Infrastructure Bonds- Series I

PRIVATE PLACEMENT

SUMMARY TERM SHEET

Issuer	IFCI Limited
Offering	1,00,000 Unsecured, Redeemable, Non-Convertible, Taxable Bonds of Rs. 5,000/- each aggregating to Rs. 50 Crore with a green-shoe option to retain over-subscripttion for issuance of additional Infrastructure Bonds
Type	Private Placement basis
Instrument	Unsecured, Redeemable, Non-Convertible, Taxable Bonds having benefits under section 80 CCF of the Income Tax, 1961 for long term Infrastructure Bonds
Rating	BWR AA- by BRICKWORK RATINGS INDIA PVT LIMITED
Eligible Investors	Resident Indian Individual (Major) and HUF through Karta of the HUF
Security	Unsecured
Face Value	Rs. 5,000/- per bond
Issue Price	At par (Rs. 5,000/- per bond)
Minimum Subscripttion	1 Bond and in multiples of 1 Bond thereafter,
Tenure	10 years, with or without buyback option after five years
Options for Subscripttion	The Bonds are proposed to provide the following options- • Option I - Non-cumulative and Buyback after 5 years • Option II - Cumulative and Buyback after 5 years • Option III - Non-cumulative and no Buyback • Option IV - Cumulative and no Buyback
Redemption / Maturity	At par at the end of 10th year from the deemed date of allotment. For Cumulative Option, at par with cumulated interest thereon.
Coupon rate	• Option I & II- 7.85% p.a. • Option III & IV - 7.95% p.a. In case of cumulative bonds, interest shall be compounded annually
Listing	Proposed to be listed on BSE
Trustee	Axis Trustee Services Limited
Depository	National Securities Depository Ltd. and Central Depository Services (India) Ltd.
Registrars	Beetal Financial & Computer Services (P) Ltd.
Mode of Payment	Interest payment will be made through ECS/At Par Cheques/Demand Drafts
Issuance	Demat form only
Trading	Demat mode only
Issue Open Date	August 9, 2010
Issue Close Date	August 31, 2010 • The issuer would have an option to pre-close the issue by giving 1 day notice to the Arrangers
Deemed Date of Allotment	September 15, 2010

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vkbothra (Learning ) (690 Points)
Replied 14 October 2010

Do’s

Check if you are eligible to apply
Sign the application wherever required
Attach a copy of self attested PAN Card along with the application form
In case of HUF applicant kindly put the stamp of HUF on the application form
Ensure that you mention the PAN no. allotted under the IT Act on the application
Check that you have mentioned correct DP Name, DP ID and Client ID on the application form
Check there is no name mismatch with the Demat account
In case of joint application check that the name on application form appears in the same order as it appears in Demat account
Read all the instruction carefully and complete the application form
Application shall be signed by Karta in case of HUF