Long Term Infrastructure Bonds

Union Finance Minister Pranab Mukherjee had announced a new tax deduction (Section 80CCF) of 20,000 INR for investment made into special infrastructure related bonds in 2010-11 budget. Some of the key feaures and notification are as follow:

• This bonds will be called “Long Term Infrastructure Bond”
• Application can be by individual or HUF only but not by minor through Guardians.
• An Individual or HUF can invest Rs. 20,000/- in a Financial year to avail deduction under section 80CCF
• Rs. 20000/- limit is in addition to 100000/- limit of section 80C, 80CCC, 80CCD
• Tenure of the Bonds will be 10 Years.
• Lock-in period is 5 years, after 5 years investor can withdraw money from the bonds
• After lock-in period, Investor can take loan against these Bonds.
• Self attested PAN copy of 1st holder is compulsory.
• Bonds are not tax free. Interest is taxable in the hands of investor. But no TDS will be deducted from interest.
• Demat is compulsory. Joint holders can apply as per same order of Demat a/c . Application without demat a/c details will be rejected.
• Minimum Application  amount is Rs 5000/- & multiples there off for each option.
• Maximum benefit to an investor shall be Rs. 20,000/- under section 80CCF of the Income Tax Act, 1942

As of now, available offering in the section are from IFCI (Industrial Finance Corporation of India) & IDFC (Infrastructure Development Finance Corporation).

Fixed Deposits Interest rate comparison

Updated Regularly - Most Latest

Banks started increasing Interest Rates on the fixed deposits again.  Most of them are already effective if you open a new one. Here are the links to have a quick view:

• SBI
• ICICI
• HSBC
• Citibank
• HDFC
• Standard Chartered
• Axis
• IDBI
• Corporation Bank
• Syndicate Bank
• PNB Banks
• ING Vyasya - Kotak Mahindra

HSBC seems to be giving the highest interest as of now.

Other Sources: http://www.maduraidirectory.com/bandf/interest.php