IDFC and L&T Infrastructure Bonds for Tax Saving

Two more infrastructure bonds, which will get you an additional tax deduction of Rs. 20,000 under section 80CCF of the Income-tax Act, are out: IDFC Ltd launched its bond on 21 November and L&T Infrastructure Finance Co. Ltd launched its issue on 24 November. The tax benefit is available only for fiscal 2012.

Just a month back, Power Finance Corp. Ltd and Industrial Finance Corp. of India Ltd launched their infrastructure bonds.



The tax deduction under 80CCF means an absolute tax saving of Rs. 6,180 for an investor who falls in the highest tax bracket 30.90%; Rs. 4,120 if you pay income-tax at the rate of 20.60%; and Rs. 2,060 if you fall in the last tax bracket of 10.30%.

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