HUDCO Tax Free Bonds: Review, Analysis & Calculation for HUDCO Bonds 2012

The Housing and Urban Development Corporation (HUDCO) is expecting to raise more around 4685 Crore Rs. (including over-subscription option) through tax saving bond issue
Yesterday we covered about a similar issue from Indian Railways Finance Corp Bonds: IRFC Tax Free Bonds, and this tax free bonds issue from HUDCO is exactly similar in nature - offering long term investment with tax benefits.
Let's see some basic details of these HUDCO Tax Saving Bonds first:

Calculations for effective returns from HUDCO Tax Saving Bonds

What is the actual instrument being offered in the name of HUDCO Bonds for Tax Savings (Image courtesy: HUDCO official site)
The issue offered by HUDCO are Tax Free Secured Redeemable Non Convertible Bonds in the nature of Debentures but offering tax benefits under section
10(15) (iv) (h) of the Income Tax Act, 1961.

Also see Related NHAI Tax Free Bonds issue and
currently open similar offering from Indian Railways : IRFC Tax Free Bonds

What is the business and function of HUDCO?
HUDCO or Housing and Urban Development Corporation is the finacial arm under Government of India. Its main function is to provide and finance the required capital to development housing projects, financing housing schemes, community facilities and related infrastructure services.

HUDCO Tax Free Bonds 2012

What are the opening and closing dates for HUDCO Bonds for Tax Savings
The HUDCO Tax Saving Bond issue opens on January 27, 2012, and closes on February 6, 2012.

What are the tax benefits avaialble for investors in the HUDCO Bonds for Tax Savings
The income earned as interest from the HUDCO tax saving bonds is fully exempted from income tax.
No TDS will be deducted by the issuer while paying the interest.
There is no Wealth Tax levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

What is the issue size of HUDCO Bonds for Tax Savings
The issue constitutes of Rs. 2000 Crores with an option of extending it to another 2,685 Crores taking the total to 4,685 Crores in case of over-subscription.

Are the HUDCO Bonds for Tax Savings available only in demat form?
Both demat and physical paper form applications can be made for HUDCO tax saving bonds - however, trading of these bonds will happen only in demat forms. Hence, physical form will be better for investors who are looking only for long term investment and hold rather than trading.

What are the investment details about HUDCO Bonds for Tax Savings?
Each HUDCO Bond will cost Rs. 1,000 each (face value) and one needs to apply for atleast 10 bonds meaning the minimum application amount comes to Rs. 10,000. Above that, the investors need to apply in multiples of 5 bonds.
The bonds come in two series (I and II) -
Interest rates offered on annual basis are as follows:
- 8.10% for Tranche-I Series 1 Bonds and
- 8.20% for Tranche-I Series 2 Bonds

However, if one applies for amount more than 5 Lakhs, he can earn another extra 0.12% p.a. and 0.15% p.a. on series 1 and series 2 respectively.
The interest rates appear to be better than those offered by similar issue from IRFC (See IRFC Tax Free Bonds)

What are the credit ratings assigned to HUDCO Bonds for Tax Savings
CARE has assigned "CARE AA+" by CARE to tranche 1 bond series and "FITCH AA+ (ind)" by FITCH.
All these indicate good stable outlook.

Where will the HUDCO Bonds for Tax Savings be listed?
The HUDCO bonds will be listed both on BSE and NSE.

What are the effective returns available on HUDCO Bonds for Tax Savings considering the tax free interest?
HUDCO bonds are offering an effective post-tax returns of about 12% - please note that this is for individuals in the highest 30% tax bracket.

What are the other options available for tax savings to investors other than HUDCO Bonds for Tax Savings
The investors can invest in Long Term Infrastructure bonds which are currently open:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) SREI Infra Bonds for Tax Saving

How can one apply for HUDCO Tax saving bonds?
Interested investors can apply through the BRLM sites and possibly also through the trading portals.

How will the capital collected by HUDCO Tax saving bonds be used by HUDCO?
As per the prospectus, the capital raised will be used for further business activity expansion and financing requirements.

Final Thoughts about HUDCO Bonds for Tax Savings?
HUDCO is backed by the government. Hence, the the stability and credit of these bonds can be considered to be stable.
Investors looking for tax savings options with shorter maturity can apply for these HUDCO bonds.
Enam Securities Private Limited and SBI Capital Markets Ltd are the Book Running Lead Managers. SBICAP Trustee Company is the Trustee

Indian Railway Tax Free Bonds: Review, Analysis & Calculation for IRFC Bonds 2012

The Indian Railways Finance Corporation is expecting to raise more around 6300 Crore Rs. through tax saving bond issue and looks like it is hitting the bulls-eye. The first day of opening the issue of IRFC bonds has given a whooping four times subscription.
High on the heels of other government infrastructure companies issuing Long term infrastructure bonds offering tax benefits to investors, the Indian Railways Finance Corporation (IRFC) has come out with its own issue of Tax Saving Bonds to tap into the benefits of long term capital raising thereby offering investors another option for tax savings.
Let's see some basic details of these IRFC Tax Saving Bonds first:

Calculations for effective returns from IRFC Tax Saving Bonds

What is the actual instrument being offered in the name of IRFC Bonds for Tax Savings
The issue offered by IRFC are Tax Free Secured Redeemable Non Convertible Bonds in the nature of Debentures but offering tax benefits under section
10(15) (iv) (h) of the Income Tax Act, 1961.

See Related NHAI Tax Free Bonds issue

What is the business and function of IRFC?
IRFC or Indian Railway Finance Corporation is the finacial arm of Indian Railways under the minitry of Railways, Government of India. Its main function is to provide and finance the require capital to development projects in Railways.

IRFC Tax Free Bonds 2012

What are the opening and closing dates for IRFC Bonds for Tax Savings
The IRFC Tax Saving Bond issue opens on January 27, 2012, and closes on February 10, 2012.

What are the tax benefits avaialble for investors in the IRFC Bonds for Tax Savings
The income earned as interest from the IRFC tax saving bonds is fully exempted from income tax.
No TDS will be deducted by the issuer while paying the interest.
There is no Wealth Tax levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

What is the issue size of IRFC Bonds for Tax Savings
The issue constitutes of Rs. 3000 Crores with an option of extending it to another 3,300 Crores taking the total to 6,300 Crores in case of over-subscription.

Are the IRFC Bonds for Tax Savings available only in demat form?
We currently do not have information about the physical form for IRFC bonds, but demat forms are surely available.

What are the credit ratings assigned to IRFC Bonds for Tax Savings
CRISIL has awarded "CRISIL AAA/Stable" ,CARE has assigned "CARE AAA" and "[ICRA] AAA" by ICRA. These are similar to the rating offered to the NHAI Tax Free Bonds issue
All these indicate good stable outlook.

Where will the IRFC Bonds for Tax Savings be listed?
The IRFC bonds will be listed both on BSE and NSE.

What are the effective returns available on IRFC Bonds for Tax Savings considering the tax free interest?
IRFC bonds are offering an effective post-tax returns of about 12% - please note that this is for individuals in the highest 30% tax bracket.

What are the other options available for tax savings to investors other than IRFC Bonds for Tax Savings
The investors can invest in Long Term Infrastructure bonds which are currently open:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) SREI Infra Bonds for Tax Saving

What are the investment details about IRFC Bonds for Tax Savings?
Each IRFC Bond will cost Rs. 1,000 each (face value) and one needs to apply for atleast 10 bonds meaning the minimum application amount comes to Rs. 10,000. Above that, the investors need to apply in multiples of 5 bonds.
The bonds come in two series (I and II) -
For sereis I coupon rate of 8.00% p.a for 10 years (Series I) and 8.10% p.a for 15 years (Series II)

However, if one applies for amount more than 5 Lakhs, he can earn another extra 0.15% p.a. and 0.20% p.a. on series 1 and series 2 respectively.

How can one apply for IRFC Tax saving bonds?
Interested investors can apply through the BRLM sites and possibly also through the trading portals.

How will the capital collected by IRFC Tax saving bonds be used by IRFC?
The money collected will be used for taking up more rolling stock and capacity increase funding in Indian Railways

Final Thoughts about IRFC Bonds for Tax Savings?
IRFC is backed by the government. Hence, the the stability and credit of these bonds can be considered to be stable.
Investors looking for tax savings options with shorter maturity can apply for these IRFC bonds.
A K Capital Services Ltd, SBI Capital Markets Ltd, and ICICI Securities Ltd are the Book Running Lead Managers. Indian Bank is the Trustee.

SREI Infra Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about SREI Infra Bonds for Tax Saving (Long Term Infrastructure Bonds) from Srei Infrastructure Finance Ltd (SIFL). Calculations for Tax saving in SREI Infra Bonds as per the different income tax brackets is also covered..

High on the heels of PFC, IDFC, L&T and IFCI who recently opened the subscription for their respective long term infrastructure bonds, SREI has now joined the bandwagon to cash in on the tax saving rush and has launched its own issue of Infrastructure Bonds for tax savings as the financial year is going to come to a close in India in March 2012.

Let's start with some basics first for the SREI Infrastructure bonds issue:
What is the business of SREI which is offering these Tax Saving Infrastructure Bonds?
SREI is a leading company in infrastructure financing in India and has been in operations since last 22 years.

SREI Infra Bonds for Tax Saving

What are the products and services offered by SREI Power Finance Corporation ?
The company offers
- Infrastructure Project Financing
- Advisory and Development
- Infrastructure Equipment Finance
- advisory and other services to power sector
- SREI also claims to be the first Indian infrastructure NBFC to be listed on the London Stock Exchange

How do the SREI Power Finance Corporation Tax Saving Infrastructure Bonds work?
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of SREI Infra Bonds for Tax Savings 2011-2012
The basic working of these bonds from any issuing company or organization remains the same, whether it is IFCI, PFC, IDFC or L&T or SREI. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructure Bonds Investments.
Now, once you are clear about the fundamental details, let's see the SREI Infra Bonds for Tax savings in more detail:

The issue size for the SREI infra bonds is Rs. 300 Crores, although the company was eligible for 500 crores of fund raising.

The bonds are being offered in 4 different options with 2 different maturity periods - 10 year and 15 years:

Series 1 & 2 - is for 10 year long bonds paying an interest rate of 8.90% per annum - coupon rate is higher than that offered by earlier issues of PFC issue but similar or lower to IFCI issue (see details below)

Series 3 & $ - is for 15 year long bonds paying an interest rate of 9.15% per annum - again, - coupon rate is higher than that offered by earlier issues of PFC issue but similar or lower to IFCI issue (see details below)
Exit option available after 5 years and 10 years period. Lock in period is 5 years.
The bonds will be listed on BSE or the Bombay Stock Exchange.

Each bond will have a face value of Rs. 1000.

Both these bonds come with the option of annual and cumulative dividend payment.
The bonds can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit.

Each SREI Infra Bond has a face value of 1000 Rs. Upper limit is not there i.e. one can apply for and buy any no. of bonds from SREI.
Allocation is on first come first serve basis.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the SREI Infra Bonds.

How will the funds or capital raised by SREI infra bonds be used by the company?
The capital or funds raised by the company will be used for infrastructure lending.

What differentiates SREI Infra Bonds from the other issues like PFC IFCI, L&T & IDFC Infra Bonds which are currently open?
The main differences between SREI infra bonds and IFCI, IDFC & L&T infra bonds are the credit rating assigned, coupon rate offered and the price per bond. See details below:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) IFCI Infra Bonds for Tax Saving
4) PFC Infra Bonds for Tax Saving

Other then the above, investors can also check the NHAI Bonds for Tax Savings

What is the security rating for the SREI Infra Bonds ?
The issue has 'AA' rating (indicating high degree of safety) from Care Ratings

How much will I effectively save by investing in SREI Infra Bonds ?
The calculations will be similar to what we covered for SREI Infra Bonds. Please see IDFC Infra Bonds for Tax Saving: Calculations, Review and Details
Also note that Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.
The income by way of interest on these Bonds is fully exempt from Income Tax under Section 10(15)(iv)(h) of the Income Tax Act, 1961 and shall not form a part of the total income

What are the investment dates and period for SREI Infra Bonds ?
The SREI Infra Bonds subscription date was opened on December 31, 2011 and will close on January 31, 2012. This will give you enough time to plan your investments rather than waiting for last minute tax savings.
Srei Capital Markets, Karvy Investor Services, ICICI Securities & RR Investors Capital Services are the BRLM or Book running lead managers to the SREI Long term Infrastructure Bonds issue for tax savings

PFC Infra Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about PFC Infra Bonds for Tax Saving (Long Term Infrastructure Bonds) from PFC. Calculations for Tax saving in PFC Infra Bonds as per the different income tax brackets is also covered..
It was in the last financial year in the month of around Februrary 2011 when we saw the Power Finance Corporation or PFC came out with its PFC Long Term Infrastructure Bonds issue. This year too, the company has decided to cash in on the tax saving buzzword just before the close of this financial year and has come out with a fresh issue of similar PFC Long Term Infrastructure Bonds for Tax Saving.
High on the heels of IDFC, L&T and IFCI who recently opened the subscription for their respective long term infrastructure bonds, PFC has now joined the bandwagon to cash in on the tax saving rush and has launched its own issue of Infrastructure Bonds for tax savings as the financial year is going to come to a close in India in March 2012.

Let's start with some basics first for the PFC Infrastructure bonds issue:
What is the business of PFC Power Finance Corporation which is offering these Tax Saving Infrastructure Bonds?
PFC is a leading financial institution in India focused on the power sector.
It works closely with the Government of India, State Government and Power sector utilities as well sa power sector provate companies for the development and implementation of policies and structural and procedural reforms for the power sector in India.

PFC Infra Bonds for Tax Saving

What are the products and services offered by PFC Power Finance Corporation ?
The company offers
- various financial products to pwer sector and projects
- advisory and other services to power sector
- project conceptualization for generation (conventional and renewable), transmission and distribution projects as well as for related renovation and modernization projects
- provides funding and financing, long and short term loans, rebt restructuring services
- Provides fee-based technical advisory and consultancy services for power sector projects

What are the details about the financial performance of PFC Power Finance Corporation ?
The company being a government run "Nav-Ratna" company is known for its solid and consistent financial performance. Both Total Income and Profit After Tax for the company has increased in the recent past.
Moreover, the credit rating agencies have provided a good stable rating to the issue of tax saving bonds. (see details below)

How do the PFC Power Finance Corporation Tax Saving Infrastructure Bonds work?
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of PFC Infra Bonds for Tax Savings 2011-2012
The basic working of these bonds from any issuing company or organization remains the same, whether it is IDFC or L&T or PFC. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructure Bonds Investments.
Now, once you are clear about the fundamental details, let's see the PFC Infra Bonds for Tax savings in more detail:

The issue size for the PFC infra bonds is Rs. 4033.13 Crores.

The bonds are being offered in 2 different options with 2 different maturity periods - 10 year and 15 years:

Series 1 - is for 10 year long bonds paying an interest rate of 8.20% per annum - coupon rate is lower than that offered by earlier issues of IFCI, IDFC and L&T which are at 9% and more (see details below)

Series 2 - Is for 15 year long bonds paying an interest rate of 8.30% per annum - again, coupon rate is lower than IFCI, IDFC and L&T which are at 9% and above
Exit option available after 5 years and 10 years period.

Both these bonds come with the option of annual and cumulative dividend payment.
The bonds can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit.

Each PFC Infra Bond has a face value of 1000 Rs. Upper limit is not there i.e. one can apply for and buy any no. of bonds from PFC.
Allocation is on first come first serve basis.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the PFC Infra Bonds.

What differentiates PFC Infra Bonds from the other issues like IFCI, L&T & IDFC Infra Bonds which are currently open?
The main difference between PFC infra bonds and IFCI, IDFC & L&T infra bonds is the credit rating assigned, coupon rate offered and the price per bond. See details below:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) PFC Infra Bonds for Tax Saving

Other then the above, investors can also check the NHAI Bonds for Tax Savings

What is the security rating for the PFC Infra Bonds ?
The issue has been rated 'CRISIL AAA/Stable' by CRISIL and 'ICRA AAA' by ICRA.

How much will I effectively save by investing in PFC Infra Bonds ?
The calculations will be similar to what we covered for PFC Infra Bonds. Please see PFC Infra Bonds for Tax Saving: Calculations, Review and Details
Also note that Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.
The income by way of interest on these Bonds is fully exempt from Income Tax under Section 10(15)(iv)(h) o! f the Income Tax Act, 1961 and shall not form a part of the total income

What are the investment dates and period for PFC Infra Bonds ?
The PFC Infra Bonds subscription date was opened on December 30, 2011 and will close on January 16, 2012. This will give you enough time to plan your investments rather than waiting for last minute tax savings

NHAI Bonds for Tax Savings: Review, Analysis & Calculation for NHAI Bonds 2011-12

High on the heels of other government infrastructure companies issuing Long term infrastructure bonds offering tax benefits to investors, the National Highway Authority of India (NHAI) has come out with its own issue of Tax Saving Bonds to tap into the benefits of long term capital raising thereby offering investors another option for tax savings.
Let's see some basic details of these NHAI Tax Saving Bonds first:

Calculations for effective returns from NHAI Tax Saving Bonds

What is the actual instrument being offered in the name of NHAI Bonds for Tax Savings
The issue offered by NHAI are Tax Free Secured Redeemable Non Convertible Bonds in the nature of Debentures but offering tax benefits under section
10(15) (iv) (h) of the Income Tax Act, 1961.

What is the business and function of NHAI?
NHAI or National Highways Authority of India is an autonomous body under the minitry of Road Transport and Highway, Government of India which was operationalised in the year 1995. Primary functions are to survey, develop, maintain and manage the National Highways. It also builds offices or workshops, establish and maintain hotels, restaurants and rest rooms at or near the highways vested in or entrusted to it and similar functions associated with it.

What are the opening and closing dates for NHAI Bonds for Tax Savings
The NHAI Tax Saving Bond issue opens on 28 December 2011 and closes on 11 January 2012.

What are the tax benefits avaialble for investors in the NHAI Bonds for Tax Savings
The income earned as interest from the NHAI tax saving bonds is fully exempted from income tax.
No TDS will be deducted by the issuer while paying the interest.
There is no Wealth Tax levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

What is the issue size of NHAI Bonds for Tax Savings
The issue constitutes of Rs. 5000 Crores with an option of extending it to 10,000 Crores in case of over-subscription.

Are the NHAI Bonds for Tax Savings available only in demat form?
NHAI bonds will be available both in demat and physical form, so all kinds of investors can apply for these bonds irrespective of whether they have demat account or not.

What are the credit ratings assigned to NHAI Bonds for Tax Savings
CRISIL has awarded "CRISIL AAA/Stable" ,CARE has assigned "CARE AAA" and "Fitch AAA(ind) with stable outlook" by FITCH.
All these indicate good stable outlook.

Where will the NHAI Bonds for Tax Savings be listed?
The NHAI bonds will be listed both on BSE and NSE.

What are the other options available for tax savings to investors other than NHAI Bonds for Tax Savings
The investors can invest in Long Term Infrastructure bonds which are currently open:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) IFCI Infra Bonds for Tax Saving

What are the investment details about NHAI Bonds for Tax Savings?
Each NHAI Bond will cost Rs. 10,000 and that is also the minimum amount to be invested.
NHAI Bonds have a maturity period of 10 and 15 years and interest will be paid annually.
The coupon rate on the bond 8.20% for 10 years and 8.30% for 15 years.
For individuals in the highest tax bracket of 30.9%, the 10-year 8.2% tax-free bond gives an effective return of about 11.87%, and the 15-year 8.3% bond 12.01%.

How can one apply for NHAI Tax saving bonds?
Interested investors can apply through the paper based applications available at the branches of Union Bank of India, IDBI Bank and Selected Branches of other Bank.
Also, trading sites like icicidirect.com are offering online applications for these NHAI bonds.

Final Thoughts about NHAI Bonds for Tax Savings?
NHAI is backed by the government. Hence, the the stability and credit of these bonds can be considered to be stable.
Although the coupon rate of 8.2% and 8.3% may look a bit on the lower side as compared to the high coupon rates offered by other Long term infrastructuer bonds, one also needs to account for the tax free interest income - Interest earned on Long term infrastructure bond is NOT tax free, while the interest earned on these NHAI bonds is tax free. Taking into account the tax benefit of non-taxable interest payment, the effective coupon rate will increase.
Investors looking for tax savings options with shorter maturity can apply for these NHAI bonds

IFCI Infra Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about IFCI Infra Bonds for Tax Saving (Long Term Infrastructure Bonds from IFCI. Calculations for Tax saving in IFCI Infra Bonds as per the different income tax brackets is also covered..
High on the heels of IDFC who recently opened the subscription for their IDFC Infrastructure Bonds for Tax Saving and then closely followed by L&T Infra Bonds for Tax Saving, IFCI has now joined the bandwagon to cash in on the tax saving rush and has launched its own issue of Infrastructure Bonds for tax savings as the financial year is going to come to a close in India in March 2012.

The market & the investors can expect to see more offerings for Long Term Infrastructure Bonds from various other organizations in coming few months as tax savings will be the buzz word since the financial year is going to come to a close in March 2012 and hence tax savings will be on the minds of investors. Now with so many different types of infrastructure bonds coming to the market, investors will be confused about what is the difference among them and which one to subscribe to? Basically, it all boils down to the interest rates offered and the credibility of the organization offering them. Usually, a good stable organization having a good credit rating (are they reliable?) will offer good enough interest rates, while organizations having a bit lower credit ratings may like to offer somewhat better interest rates to attract investors despite their low credit ratings.
Let's start with some basics first for the IFCI Infrastructure bonds issue:
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of IFCI Infra Bonds for Tax Savings 2011-2012
The basic working of these bonds from any issuing company or organization remains the same, whether it is IDFC or L&T or IFCI. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructure Bonds Investments.
Now, once you are clear about the fundamental details, let's see the IFCI Infra Bonds for Tax savings in more detail:

Relatively small issue size for the IFCI infra bonds, trying to collect around 100 Crore Rs. from the market - compare that to L&T infra bonds which are looking for 1100 Crores.

Green shoe option is there with the IFCI infra bonds but the green shoe option details remain unspecified.

The purpose & capital raised through the IFCI infra bonds will be used to finance the infrastructure projects all across the country.

The bonds are being offered in 2 different options with 2 different maturity periods - 10 year and 15 years:

Series 1 - is for 10 year long bonds paying an interest rate of 9.09% per annum - coupon rate is higher than IDFC and L&T which are at 9%
Investors have the option to redeem the bonds after the mandatory 5 year lock-in period. They can also exit after 7 years period.

Series 2 - Is for 15 year long bonds paying an interest rate of 9.16% per annum - coupon rate is higher than IDFC and L&T which are at 9%
Exit option available after 5 years and 10 years period.

Both these bonds come with the option of annual and cumulative dividend payment.
The bonds can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit.

One needs to invest a minimum of 5000 Rs. to buy a IFCI infra bond. Upper limit is not there i.e. one can apply for and buy any no. of bonds from IFCI.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the IFCI Infra Bonds.

What differentiates IFCI Infra Bonds from the other issues like L&T & IDFC Infra Bonds which are currently open?
As of now IDFC Infra bonds issue is open (See details: IDFC Infrastructure Bonds for Tax Saving) and (L&T Infra Bonds for Tax Saving is open), but very soon we expect more infrastructure companies to line up with their issues as there are still 3.5 months to end of financial year.
The main difference between IFCI infra bonds and IDFC & L&T infra bonds is the credit rating assigned and the price per bond.

What is the security rating for the IFCI Infra Bonds ?
'BWR AA-' by Brickwork Ratings India Pvt. Limited
CARE 'A+' by CARE Ratings (Credit Analysis & Research Ltd.)
'LA' by ICRA Limited

How much will I effectively save by investing in IFCI Infra Bonds ?
The calculations will be similar to what we covered for IFCI Infra Bonds. Please see IFCI Infra Bonds for Tax Saving: Calculations, Review and Details

What are the investment dates and period for IFCI Infra Bonds ?
The IFCI Infra Bonds subscription date was opened on November 30, 2011 and will close on January 16, 2012. This will give you enough time to plan your investments rather than waiting for last minute tax savings. Also, 9% interest offering looks good.
It is not mandatory to have a PAN no. for buying these bonds. Also, one can buy these bonds in both demat as well as physical format.

L&T Infra Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about L&T Infra Bonds for Tax Saving (Long Term Infrastructure Bonds from Larsen & Toubro Ltd. Calculations for Tax saving in L&T Infra Bonds as per the different income tax brackets is also covered..
High on the heels of IDFC who recently opened the subscription for their IDFC Infrastructure Bonds for Tax Saving, L&T has come out with their issue of Infrastructure Bonds for tax savings as the financial year is going to come to a close in India in March 2012. Same L&T had issued similar infrastructure bonds for tax savings in last financial year and here are the details of the same: L&T Infrastructure Bonds for Tax Saving - Feb 2011
The market should expect to see more buzz for Long Term Infrastructure Bonds from various companies in coming few months as tax savings will be on the minds of investors. So what's the difference between the bonds already available from other organizations and the one now offered by L&T? Bascially nothing except the interest rates offered and the organization which is offering them.
Let's start with some basics first:
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of L&T Infra Bonds for Tax Savings 2011-2012 (Similar offering L&T had last year and the details of that can be seen on L&T Infrastructure Bonds for Tax Saving - Feb 2011. Last year L&T Infra bonds managed to raise around 450 Crore Rs. through the infra bond issue.

Review of IDFC Long term Infrastructure Bonds for Tax Saving

The basic working of these bonds from any issuing company or organization remains the same, whether it is IDFC or L&T or IDFC or IFCI. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructure Bonds Investments.
Now, once you are clear about the fundamental details, let's see the L&T Infra Bonds for Tax savings in more detail:

The aim is to collect around 1100 Crore Rs. from the market through the same of these infra bonds.

The bonds are being offered in 2 different series - basically meaning that investors have 2 choices/options for investments:

Series 1 - is for 10 year long bonds paying an interest rate of 9% per annum (annual interest payment) - Maturity Amount is 1000 Rs. as interest is payable annually.

Series 2 - Is for 10 year long bonds paying an interest rate of 9% per annum (cumulative interest payment) - Maturity Amount is 2367.36 Rs.

The bonds will be listed on BSE only (Not NSE) and can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit. These bonds will come with a buyback option after 5 years i.e. IDFC holds the right to buy back the bonds after 5 year period.

The face value of each bond is set to Rs. 1000 but a minimum of 5 bonds need to be bought - i.e. you need to invest minimum 5000 Rs. to buy a L&T infra bond. Upper limit is not there i.e. one can apply for and buy any no. of bonds from L&T.
Annual interest payment bonds will be bought back at the rate of Rs. 5000 while cumulative interest payment bonds will be bought back at the rate of Rs. 7695 per bond.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the L&T Infra Bonds.

What differentiates L&T Infra Bonds from the other issues like L&T Infra Bonds which are currently open?
As of now only IDFC Infra bonds issue is open (See details: IDFC Infrastructure Bonds for Tax Saving), but very soon we expect more infrastructure companies to line up with their issues as there are still 4 months to end of financial year.
The main difference between L&T infra bonds and IDFC infra bonds is the credit rating assigned and the price per bond.

What is the security rating for the L&T Infra Bonds ?
Fitch has given a AA+ rating, ICRA has given AA+ rating to the L&T Infra Bonds.
These are the highest credit ratings awarded by these rating agencies

How much will I effectively save by investing in L&T Infra Bonds ?
The calculations will be similar to what we covered for L&T Infra Bonds. Please see L&T Infra Bonds for Tax Saving: Calculations, Review and Details

What are the investment dates and period for L&T Infra Bonds ?
The L&T Infra Bonds subscription date was opened on 25 November 2011 and will close on 24 December 2011. This will give you enough time to plan your investments rather than waiting for last minute tax savings. Also, 9% interest offering looks good.
It is not mandatory to have a PAN no. for buying these bonds. Also, one can buy these bonds in both demat as well as physical format

IDFC Infrastructure Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about IDFC Infrastructure Bonds for Tax Saving (Long Term Infrastructure Bonds from Infrastructure Development Finance Company Limited (IDFC Ltd). Calculations for Tax saving in IDFC Infrastructure Bonds as per the different income tax brackets is also covered..
Last year, around this time, there was a wave of lot of infrastructure bonds coming to the market for tax saving purpose. We'd covered them extensively in deep details. Now that the financial year is coming to a close in India in next few months, the same companies are again lining up with a new fresh issue of similar long term infrastructure bonds.
The market should expect to see a buzz for Long Term Infrastructure Bonds from various companies in coming few months. There were Infrastructure Bonds from IDFC, IIFCL and L&T already available in the market during this time last year. Today, IDFC has come out with a new fresh issue of similar bonds and it is currently open for subscription, under the name IDFC Long Term Infrastructure Bonds for Tax Saving. So what's the difference between the bonds already available from other organizations and the one now offered by IDFC? Bascially nothing except the interest rates offered and the organization which is offering them.
Let's start with some basics first:
If you are completely new to Tax Free Infrastructure Bonds, we strongly advise you to get the basic details about working of the infra bonds and the tax saving eligibility and calculations as mentioned in the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. Once you are familiar with the basic calculations and tax saving details as per your individual tax slab, you can proceed with the details of this open issue of IDFC Infrastructure Bonds for Tax Savings 2011-2012 (To check what offering IDFC had last year, one can read more about the details IDFC infrastructure Bonds that was available in last financial year)

Review of IDFC Long term Infrastructure Bonds for Tax Saving

The basic working of these bonds from any issuer, whether it is IDFC or L&T or IDFC or IFCI, remains the same. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructe Bonds Investments.
Now, once you are clear about the fundamental details, let's see the IDFC Infra Bonds for Tax savings in more detail:

The bonds are being offered in 2 different series - basically meaning that investors have 2 choices/options for investments:

Series 1 - is for 10 year long bonds paying an interest rate of 9% per annum (annual interest payment)

Series 2 - Is for 10 year long bonds paying an interest rate of 9% per annum (cumulative interest payment)

The bonds will be listed on NSE and BSE and can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit. These bonds will come with a buyback option after 5 years i.e. IDFC holds the right to buy back the bonds after 5 year period.

The face value of each bond is set to Rs. 5000 - i.e. you need to invest minimum 5000 Rs. to buy a bond - cost of 1 bond. Upper limit is not there i.e. one can apply for and buy any no. of bonds from IDFC.
Annual interest payment bonds will be bought back at the rate of Rs. 5000 while cumulative interest payment bonds will be bought back at the rate of Rs. 7695 per bond.

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the IDFC Infrastructure Bonds.

Depending upon your income tax slab, following tab benefits are available, in case of Maturity and in case of Buyback:

Tax Benefit adjusted rate of returns (pre-tax) to Investors on Maturity
Tax Slab – 30.90% 15.2% 13.1%
Tax Slab – 20.60% 12.8% 11.5%
Tax Slab – 10.30% 10.7% 10.2%

Tax Benefit adjusted rate of returns (pre-tax) to Investors on Buyback
Tax Slab – 30.90% 19.1% 17.4%
Tax Slab – 20.60% 15.2% 14.2%
Tax Slab – 10.30% 11.8% 11.4%

What differentiates IDFC Infrastructure Bonds from the other issues like IDFC Infrastructure Bonds which are currently open?
The difference is in the interest rate or coupon rate offered on IDFC bonds.

What is the security rating for the IDFC Infrastructure Bonds ?
Fitch has given a AAA Stable rating, ICRA has given AAA (Stable Outlook) rating to the IDFC Infrastructure Bonds.
These are the highest credit ratings awarded by these rating agencies

How much will I effectively save by investing in IDFC Infrastructure Bonds ?
The calculations will be similar to what we covered for IDFC Infrastructure Bonds. Please see IDFC Infrastructure Bonds for Tax Saving: Calculations, Review and Details

What are the investment dates and period for IDFC Infrastructure Bonds ?
The IDFC Infrastructure Bonds subscription date was opened on 21 November 2011 and will close on 16 December 2011. This will give you enough time to plan your investments rather than waiting for last minute tax savings. Also, 9% interest offering looks good

PFC Infrastructure Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about PFC Infrastructure Bonds for Tax Saving (Long Term Infrastructure Bonds from Power Finance Corporation Limited. Calculations for Tax saving in PFC Infrastructure Bonds as per the different income tax brackets is also covered..
The market is now seeing a buzz for Long Term Infrastructure Bonds. There are Infrastructure Bonds from IDFC, IIFCL and L&T already available in the market and currently open for subscription, and now Power Finance Corporation or PFC has also come out with its issue of PFC Infrastructure Bonds for Tax Saving. So what's the difference between the bonds already available from other organizations and the one now offered by PFC? Bascially nothing except the interest rates offered and the organization which is offering them.
You can read more about the details we covered for IIFCL Infrastructure Bonds and IDFC infrastructure Bonds, as they too are good option available for investments.

Review of PFC Long term Infrastructure Bonds for Tax Saving

All the investors should note that the basic working of all these various infrastructure bonds offered by these various organizations like PFC, IIFCL, IDFC, L&T, etc. remain the same. General details and working of the infrastructure bonds is covered in the article: Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds - that article covered the basic details of working of Long Term Tax Free Infrastructure Bonds and the benefits available to the investors both in terms of returns as well as saving of taxes.
The basic working of these bonds from any issuer, whether it is PFC or L&T or IDFC or IFCI, remains the same. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructe Bonds Investments.
Now, once you are clear about the fundamental details, let's see the PFC Infra Bonds for Tax savings in more detail:

The bonds are being offered in 2 different series - basically meaning that investors have 2 choices/options for investments:

Series 1 - is for 10 year long bonds paying an interest rate of 8.3% per annum

Series 2 - Is for 15 year long bonds paying an interest rate of 8.5% per annum

The bonds will be listed on BSE and can be traded after the minimum lock in period of 5 years - the lock in period if for gaining the tax benefit

However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the PFC Infrastructure Bonds.

Including tax surcharge saving, the maximum tax saved by an investor who falls in 30% tax bracket will be Rs. 6180 (on the 20K investment) - as claimed in the newspaper ad by PFC for there infrastruture bonds.

What differentiates PFC Infrastructure Bonds from the other issues like IDFC Infrastructure Bonds which are currently open?
The difference is in the interest rate or coupon rate offered on PFC bonds.

What is the security rating for the PFC Infrastructure Bonds ?
CRISIL has given a AAA Stable rating, ICRA has given LAA+ (Stable Outlook) rating to the PFC Infrastructure Bonds.

How much will I effectively save by investing in PFC Infrastructure Bonds ?
The calculations will be similar to what we covered for IDFC Infrastructure Bonds. Please see IDFC Infrastructure Bonds for Tax Saving: Calculations, Review and Details

What are the investment dates and period for PFC Infrastructure Bonds ?
The PFC Infrastructure Bonds subscription date was opened on 24th February and will close on 22nd March 2011. This will give last minute tax savers a good option to go for tax savings at the last hour. Moreover, as the budget comes out on 28th Feb, investors can get more clarity about government's direction on these tax saving schemes.

All Tax Saving Infrastructure Issues open Now:
IDFC Infrastructure Bonds for Tax Saving

IIFCL Infrastructure Bonds for Tax Saving - Closing 4th March 2011

PFC Infrastructure Bonds for Tax Saving - Closing 7th March 2011

L&T Infrastructure Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about L&T Infrastructure Bonds for Tax Saving. Calculations for Tax saving in L&T Infrastructure Bonds as per the different income tax brackets is also covered..
High on the heels of IIFCL Infrastructure Bonds and IDFC infrastructure Bonds, the L&T or Larsen and Toubro group has also come out with its set of infrastrucutre bonds to collect money from investors and provide them with the juicy option in the name of tax savings. One can read more about the details we covered for IIFCL Infrastructure Bonds and IDFC infrastructure Bonds, as they too are good option available for investments.

Review of L&T Long term Infrastructure Bonds for Tax Saving

One this all the investors should note is that the basic workinfg of all these various infrastructure bonds offered by these various organizations like L&T, IIFCL, IDFC, etc. remain the same. General details and working of the infrastructure bonds is covered in the article: Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds - that article covered the basic details of working of Long Term Tax Free Infrastructure Bonds and the benefits available to the investors both in terms of returns as well as saving of taxes.
The basic working of these bonds from any issuer, whether it is L&T or IDFC or L&T or IFCI, remains the same. To learn about the underlying concept, and how tax savings will work, please read the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds. What differes is the rate of returns, the period of investments, the coupon rate and hence the effective interest payment and tax free calculations. Here are the examples of the calculations including tax benefits for investments in Infrastructure bonds :Calculations and Returns in Infrastructe Bonds Investments.
Now, once you are clear about the fundamental details, let's see the L&T Infra Bonds for Tax savings in more detail:

The issue size of L&T Infrastructure Bonds is 100 Crore Rs.

The bonds are being offered in 2 different sereis - basically meaning that investors have 2 choices/options for investments:

Series 1 - Is for 10 year long bonds with a buyback option at 5 years and pays an ANNUAL interest rate of 8.2%

Series 2 - Is for 10 year long bonds with a buyback option at 5 years and 7 years and pays an CUMULATIVE interest rate of 8.3%

The bonds will be listed on NSE and can be traded after the minimum lock in period of 5 years (as they offer tax benefit)
Minimum investment required is Rs. 5000 and maximum is open to the choice of investors.
However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the L&T Infrastructure Bonds.

Including tax surcharge saving, the maximum tax saved by an investor who falls in 30% tax bracket will be Rs. 6158 (on the 20K investment).

What differentiates L&T Infrastructure Bonds from the other issues like IDFC Infrastructure Bonds which are currently open?
The difference is in the interest offered on these bonds.

What is the security rating for the L&T Infrastructure Bonds ?
CARE has given AA+ rating and ICRA has given LAA+ rating to the L&T Infrastructure Bonds.

However, for all the investment series, there will be a lock-in period, as the bonds will give tax benefit.

How much will I effectively save by investing in L&T Infrastructure Bonds ?
The calculations will be similar to what we covered for IDFC Infrastructure Bonds. Please see IDFC Infrastructure Bonds for Tax Saving: Calculations, Review and Details

What are the investment dates and period for L&T Infrastructure Bonds ?
The L&T Infrastructure Bonds subscription date was opened on 7th February and will close on 7th March.

All Tax Saving Infrastructure Issues open Now:
IDFC Infrastructure Bonds for Tax Saving

IIFCL Infrastructure Bonds for Tax Saving - Closing 4th March 2011

PFC Infrastructure Bonds: Review - Closing on 22nd March 2011

More information can be obtained by calling the L&T Infra Bonds TOLL FREE NUMBER:1800 102 2131

IIFCL Infrastructure Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns

This article covers the details about IIFCL Infrastructure Bonds for Tax Saving. Calculations for Tax saving as per the different income tax brackets is also covered..
It was recently we covered the general details of the recently introduced Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds - that article covered the basic details of working of Long Term Tax Free Infrastructure Bonds and the benefits available to the investors both in terms of returns as well as saving of taxes.

Review of IIFCL Long term Infrastructure Bonds for Tax Saving

The government owned IIFCL or Indian Infrastructure Finance Company, has opened up its Tax Saving Infrastucture Bonds Issue Scheme with an aim to collect around 1,200 Crore Rs. from the market with a long term investments points of view and offering tax savings. This scheme is very similar to the one currently open from IDFC: See IDFC Infrastructure Bonds for Tax Saving: Calculations, Review and Details. However, the difference lies in the interest rate offered by IIFCL bonds.

The basic working of these bonds from any issuer, whether it is IIFCL or IDFC or L&T or IFCI, remains the same. To learn about the underlying concept, and how tax savings will work, please read the article Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds.
Now, once you are clear about the fundamental details, let's see the IIFCL Infra Bonds for Tax savings in more detail:

The issue size of IIFCL Infrastructure Bonds is 1,200 Crore Rs.

Minimum investment required is Rs. 5000 and maximum is open to the choice of investors.
However, as per the rule of tax-saving investments under section 80CCF of the IT Act, tax savings will be allowed only on a maximum of 20,000 Rs. irrespective of the amount of investments made in the IIFCL Infrastructure Bonds.

Including tax surcharge saving, the maximum tax saved by an investor who falls in 30% tax bracket will be Rs. 6158 (on the 20K investment).

What differentiates IIFCL Infrastructure Bonds from the other issues like IDFC Infrastructure Bonds which are currently open?
The difference is in the interest offered on these bonds.

What is the security rating for the IIFCL Infrastructure Bonds ?
Although no rating info is available, but the bonds are considered to be safe. The IIFCL company is government owned and hence the investments in IIFCL bonds is backed by the government, so investors can safely park their money in these bonds.

What are the investment options available for IIFCL Infrastructure Bonds ?
The IIFCL bonds are being launched in multiple series:
First and second series will be for 10 years long bonds and promises a return of 8.15% interest rate per annum
Third and fourth series will be for 15 year long bonds and gives a 8.3% return.

However, for all the investment series, there will be a lock-in period, as the bonds will give tax benefit.

How much will I effectively save by investing in IIFCL Infrastructure Bonds ?
The calculations will be similar to what we covered for IDFC Infrastructure Bonds. Please see IDFC Infrastructure Bonds for Tax Saving: Calculations, Review and Details

Other Issue Open Now: L&T Infrastructure Bonds for Tax Saving - Closing 7th March 2011

PFC Infrastructure Bonds: Review - Closing on 22nd March 2011

What are the investment dates and period for IIFCL Infrastructure Bonds ?
The IIFCL Infrastructure Bonds subscription date is currently open and will close on 4th March

IDFC Infrastructure Bonds: Review, Analysis & Calculation for Effective Returns

It was recently we covered the general details of the recently introduced Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds - that article covered the basic details of working of Long Term Tax Free Infrastructure Bonds and the beenfits available to the investors both in terms of returns as well as saving of taxes. In this article, we cover the review, analysis, tax saving calcuations and details of recently launched IDFC Long Term infrastructure Bonds, for tax savings and investment returns calculations

Review of IDFC Long term Infrastructure Bonds for Tax Saving

As the financial year in India is coming close, we are seeing a surge in promotional offers for tax saving schemes - both in advertisements as well as introduction of new tax saving scheme offers. The leading financial company, IDFC has come out with its tax saving scheme for Long Term Infrastructure Bonds called IDFC Long term Infrastructure Bonds. The issue is currently open and will close on 4th February.
Let's have a look at the basic details first and then we will check the effective calculations for investors, whether it makes sense to put your hard earned money in these Long term infrastructure Bonds from IDFC or not.

This scheme is for sale of infrastructure bonds, each bond will cost 5,000 Rs. One can buy as many bonds as he likes, but tax saving will only be given on a maximum investment of 20,000 Rs. i.e. only 4 bonds purchase will qualify for tax saving.
The scheme is lauched by IDFC under the section 80 CCF of Income Tax Act, which offers tax savings.

Any ratings given to IDFC Long term Infrastructure Bonds for Tax Saving?
Yes, ICRA has given LAAA and FITCH has given AAA (ind) which indicates a stable outlook for this investment scheme.

Is there a lock-in period for IDFC Long term Infrastructure Bonds for Tax Saving?
Yes - although the maturity period of these bonds is 10 years, the bonds can be traded on NSE and BSE after 5 years of holding period.
Repo or lending on these bonds will be allowed only after the lock in period of 5 years, as that is the minimum required lock in period for tax benefit purpose for Indfrastructure bonds.

What options are available for interest payment for IDFC Long term Infrastructure Bonds for Tax Saving?
One can opt for either annual interest payment or cumulative interest payment for these bonds.
Obviously, the effective returns will be higher in case of cumulative interest payment.

What are the subscription dates for IDFC Long term Infrastructure Bonds for Tax Saving?
The issue is currently open and will close for subscription of 4th February 2011.

How can one invest in IDFC Long term Infrastructure Bonds for Tax Saving?
Although paper based applications will be acceptable, here we provide the contact details and direct online link to IDFC site for reader who are interested in investing in IDFC Infrastructure Bonds for Tax Saving. IDFC site link.
You dont need to have a demat account for applying for IDFC Long term Infrastructure Bonds for Tax Saving. You can as well get them in physical paper based forms.

However, before going for investments, you must first check the calculations whether you are really getting any benefit from these bonds investments or not? Continue to Calculations of effective returns for IDFC Long term Infrastructure Bonds for Tax Saving

IDFC Infrastructure Bonds for Tax Saving: Calculation & Effective Returns

In this article, we cover the calculation for effective returns from IDFC Long term Infrastructure Bonds for Tax Saving. This is second part of article IDFC Long term Infrastructure Bonds for Tax Saving: Review, Analysis & Calculation for Effective Returns. Please read part I before reading this part II

Calculations for effective returns from IDFC Long term Infrastructure Bonds for Tax Saving

Now, please note that tax saving is available only for maximum of 20,000 Rs. invested in these bonds. So whether you buy bonds worth 1 Lakh or 10 Crore, you will get only a maximum tax benefit for 20,000 Rs. investment.

Second, dont get a wrong impression about maximum tax savings. The tax saving actually depends upon your tax bracket. So if you invest, say 20,000 in the IDFC Long term Infrastructure Bonds for Tax Saving, and you fall in 10% tax bracket, then the tax you save is only 10% of 20K i.e. only 2,000 Rs.
People who are in highest tax bracket of 30% will save the maximum tax i.e. 30% of 20K = 6,000 Rs.
So first check your tax bracket and follow the calculations below.

Now to check how much effectively you get by investing in these IDFC Long term Infrastructure Bonds for Tax Saving, let's take an example of a person who is in highest tax bracket of 30% and he invest 20K in these bonds which is locked for 5 long years. Assume that he sells off his bonds after 5 years

What he saves in taxes is 30% * 20K = 6,000 Rs. (one time only)
What he receives each year in form of interest payment = 8% per annum * 5 years = 40% i.e. 40% of 20K = 8,000 Rs. (over a period of 5 years)

Total Returns over a period of 5 years = 6K + 8K = 14K
Total invested amount = 20K

Returns % over a period of 5 years = 14K/20K = 70%
If we take a simple average over 5 years, returns per year = 70% / 5 years = 14%

So this appears to be a good option to invest your money as the returns are much higher (considering a simple average)
But then, the biggest problem is that your money is locked in for 5 long years. If you are fine with that and dont need that money, it is worth investing in these bonds.
However, if you have any liabilities, like a high interest loan payments to be made, say a car loan chargin you 12% per annum, then instead of investing in these bonds, it is better to pre-pay your high interest car loan. You will save in the long run.

For the case of 20% tax bracket investor, the tax saving will be 20% only. Effective return will be 20% tax saving + 40% interest income = 60%.
Over a 5 year period, it comes to just 12% (simple average). Again, check your liabilities and see if you can get rid of any outstanding loans before making any such investments.

For 10% tax bracket, I dont really see any effective gains. Total returns over 5 year period will be 50%, making it 10% annual (simple average). No point in locking your money for 5 long years for such a return. Instead, check out high interest paying Fixed deposits now available through various banks.

Even for the best case of 30% tax bracket we discussed above, one must note that over the 5 year long period, the value of your money will keep coming down due to inflation and increased cost of living. So dont live under the false impression that you will actually get the worth calculated above. Remember its for 5 long years, your money is getting blocked.
Also note that the interest you earn on these bonds is NOT tax free. Reduce that tax and again check for effective returns for 30% tax bracket:
Interst Income: 40%
After 30% tax: 40% * 0.7 = 28%
Net : 30% (Tax saving) + 28% = 58% (over 5 years)
Simple avergae annual return = 58% /5 = 11.6% only.

So make your own calculations, Invest cautiosly, and only if you just need tax saving and have no other liabilities

All Other Tax Saving Infrastructure Issues open Now:
IIFCL Infrastructure Bonds for Tax Saving - Closing 4th March 2011

L&T Infrastructure Bonds for Tax Saving - Closing 7th March 2011

PFC Infrastructure Bonds: Review - Closing on 22nd March 2011

Tax Free Infrastructure Bonds Details: Save Tax On Investments in Infra Bonds

In this article, we will provide the Necessary Information and details required for investing in Tax Free Infrastructure Bonds and how to save taxes on Tax Free Infrastructure Bonds Investments. Please note that investment is a personal choice and one must be aware of his requirements and risk appetite before making investments.

Tax Free Infrastructure Bonds

Keeping the promises which the finance minister made in his budget speech, the govt has come out with the necessary details and guidelines for investing in Tax Free Infrastructure Bonds for the purpose of saving taxes.
It is an attempt to boost the investments in the infrastructure sector, which is the need of the hour and by providing tax benefit on such Tax Free Infrastructure Bonds, it is being made more attractive for all classes of investors.

IDFC Infrastructure Tax Saving Bonds Issue Now Open: See IDFC Infrastructure Bonds: Review, Analysis & Effective Returns Calculations

What is the available limit for tax benefit in Tax Free Infrastructure Bonds?:
The amount of money which can be invested in these Tax Free Infrastructure Bonds is not having any limit, but the tax benefit will be available only on a maximum of 20,000 Rs. i.e. if you fall in 30% tax bracket, then by inveting 20,000 in these Tax Free Infrastructure Bonds, you can save a 6,000 Rs. in taxes. You can invest more as per your wish, but the maximum tax to be saved will remain 6,000 only.
So what is the benefit of investing in Tax Free Infrastructure Bonds if they offer the same tax benefit?
There is a good benefit. The investment in these Tax Free Infrastructure Bonds are considered to be a part of section 80(C), but the 20,000 amount will be treated as a seperate amount over and above the 80(C) limit of 1 Lakh. i.e. You can continue to make investments of Rs. 1L under section 80(C) in your regular Provident Fund, LIC policies and so on but if you invest additional 20K in Tax Free Infrastructure Bonds , then your total eligible limit of tax exemption increases to 1.2 Lakhs.
However, please note that this extra 20K is reserved exclusively for Tax Free Infrastructure Bonds and not for any other investments. Any other investments falling under section 80(C) will still be capped at 1L.

What is the tenure & lock-in period of these Tax Free Infrastructure Bonds ?
Contrary to what the investors used to see during the 2000-2001 period, where Tax Free Infrastructure Bonds used to have a short term maturity of just 3 years, things are quite different this time.
The Tax Free Infrastructure Bonds will now have a long tenure of 10 years. However, the lock-in period will be 5 years which means that after completion of 5 years, the investors can opt out or redeem its invested amount
It is also not know how will the interest payment be allowed - whether yearly or only on maturity. My guess is that interest or coupon payment will depend upon the issuer of the Tax Free Infrastructure Bonds .

Who can offer these Tax Free Infrastructure Bonds?
As of now, the government is restricting that to only a few Infrastructure companies or Infrastructure Finance related companies. That means only institutions like IDFC, LIC, IFCI can offer these bonds. So the credit worthiness of these organizations will play a major role in deciding the Tax Free Infrastructure Bonds ratings and the returns they will offer. The tax benefit will be irrespective of the coupon payment offered.
Good thing is that the government will offer guarantee for these Tax Free Infrastructure Bonds . You might also see some private players being allowed to issue and float such Tax Free Infrastructure Bonds , but there is no clear news on that now. It is also not known whether the bonds issued by Private players will be having government guarantee or not.

Final Thought about Tax Free Infrastructure Bonds - should someone invest in it?
Now that's a million dollar question.

All Tax Saving Infrastructure Issues open Now:
IIFCL Infrastructure Bonds for Tax Saving - Closing 4th March 2011

L&T Infrastructure Bonds for Tax Saving - Closing 7th March 2011

IDFC Infrastructure Tax Saving Bonds Issue Now Open: See IDFC Infrastructure Bonds: Review, Analysis & Effective Returns Calculations

PFC Infrastructure Bonds: Review - Closing on 22nd March 2011

But my personal opionion at this point in time, when no info is available about the interest rate of return on these bonds, is that based upon your financial situation, one must take a call.
If you dont have any liabilities, like home loans, car loans, etc. and have ample amount of money which you dont want to use, then you can make investments in these Tax Free Infrastructure Bonds solely for tax saving purpose. But keep in mind that inflation usually eats away all your real returns from these kinds of bond investments. Tax saving is there, but only for first year.

However, if you have liabilities like home loan, car loan, or family dependencies requiring money, there is no point in locking your money for a long period of 5 long years. Even if these bonds are offering 10% rate of return, infaltion will eat into your returns by the time you withdraw your money. Better to use this money to repay or pre-pay your loans where your might be paying a lot of interest