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 HUDCO Logo (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 IRFC Logo
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.

Morgan Stanley Multi Asset Fund NFO: Review Analysis & Details

Details about Morgan Stanley Multi Asset Fund: Review, Analysis, Details & Investment Opinion.
Another mutual fund house is going to make an entry into the multi-asset fund offering. This time it is the world renowned Morgan Stanley Mutual Fund India which is going to launch its mutual fund called the Morgan Stanley Multi Asset Fund.

In this article, we will analyze how good is this Morgan Stanley Multi Asset Fund NFO, whether this Morgan Stanley Multi Asset Fund offers anything new or unique for the investors and whether the investors should invest in Morgan Stanley Multi Asset Fund.

Morgan Stanley Multi Asset Fund NFO: Review Analysis & Details

Let's begin with some basic details about Morgan Stanley Multi Asset Fund.

What are the NFO dates for Morgan Stanley Multi Asset Fund? Morgan Stanley Multi Asset Fund

The NFO period for Morgan Stanley Multi Asset Fund is from 17th January 2012 and will close on 31 January November 2012. After the NFO period, the regular buying and redemption of fund units will start.

What is so unique about this Morgan Stanley Multi Asset Fund?
The unique thing about this mutual fund is that it is offering a mix of 3 different assets for investments - Equity (Stocks), Debt and Gold. So basically, when an investor invests his money in this Morgan Stanley Multi Asset Fund, his invested money will be allocated to 3 different asset classes - Stocks, Debt and Gold - in the proportion as mentioned by the fund managers. Hence, this Morgan Stanley Multi Asset Fund offers a good option for diversified investing. However, investors should note that this kind of product is not the first one to be offered in the Indian markets. There already exists similar triple asset funds - examples are Axis Triple Advantage Fund and Taurus MIP Advantage Fund NFO: Review Analysis & Details, which can also be looked on by the investors. Specially in the way how these existing funds with 3 asset classes have performed in the recent past.

What are the other competitor products available in comparison to Morgan Stanley Multi Asset Fund?
As of now, we are aware of atleast 2 such triple asset funds already available in the market.
1) Axis Triple Advantage Fund and

2) Taurus MIP Advantage Fund NFO: Review Analysis & Details
However, there can be more similar products offerings from other fund houses.

What are the risks of investing and trading Morgan Stanley Multi Asset Fund?
Diversification is good - but it comes at a cost. Investing in more no. of assets will mean more brokerage and transactional costs and fees.
Diversification also leads to limiting the profit, apart from limiting the losses. For e.g., if gold prices shoot up, but returns from stocks is negative, all the profits from increase in gold prices will be nullified by the loss in stocks.
The proportion in which your invested money will be split across the 3 assets will also matter.

Final Thoughts about Morgan Stanley Multi Asset Fund?
Another multi-asset fund offering which may appeal to investors looking for diversification. Although it comes with its own set of risks as mentioned above.
See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.

Tax benefit will NOT be available in Morgan Stanley Multi Asset Fund.

There will be 2 plans for investors to choose from:

Plan A: Debt and Money market instruments: 80-100%; Equity and Equity Related Instruments: 0-20%.
This plan will NOT have any exposure to Gold.

Plan B: Debt and Money market instruments: 65-100%;[i] Equity and Equity Related Instruments and [ii] Gold Exchange Traded Funds: 0-35% where each of [i] and [ii] will not exceed 20% of net assets.

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

Morgan Stanley Multi Asset Fund Entry Load:
Morgan Stanley Multi Asset Fund Exit Load: 1% if exit within 1 year ; 2% is exit within 6 months (this is high compared to other gold funds)
NIL beyond 1 year.

SIP or systematic investment plan? Yes, but only through ECS mode.
The benchmark for Morgan Stanley Multi Asset Fund will be a Composite benchmark depending upon the plan:

Plan A: 80% of CRISIL Composite Bond Fund Index + 20% S&P CNX Nifty

Plan B: 70% of CRISIL Composite Bond Fund Index + 20% S&P CNX Nifty + 15% Domestic Price of Gold*

Mr. Jayesh Gandhi and Mr. Ritesh Jain will be the fund manager for Morgan Stanley Multi Asset Fund.

Coal India Wage Hike: Latest News of 25% Pay increase

The management of the largest coal miner of India, Coal india Limited, has finally come to agreement with the workers union about the Wage Hike or Salary Hike for its 3 Lakh Workers (300,000 employeees). The reports say that the wage hike agreement has been for 25% increase in the salary of the non-executive employees of Coal India Limited.

Coal India Employee Salary Hike: Latest News

Although the unions were demanding around 100% wage hike (i.e. double the existing salaries), and the various analysts were of the opinion that hike would be in the range from 15% to 30%, the management is reported to have settled it for 25% increase. Coal India
How many employees of Coal India will benefit from this Wage Hike?
It is reported that around 300,000 (3 Lakh) employees of Coal India will benefit from the Pay hike decision

How much will this Wage Hike cost Coal India ?
If 25% wage hike is what is agreed on, then it will cost around Rs. 3,360 crore - which will not impact the company financials much as it is in line (or somewhat lower) with the majority of estimates by the stock analysts.
Overall, The employee cost for coal India in FY'12/13 is expected to remain in-line with the estimates.

Coal India's wage bill is Rs 15,000 Crores per year. With this additional 25% increase, another additional 4000 crore per year will be required for the wage bill.

What is the current basic salary of Coal India Workers?
As of now, the basic salary of a Coal India worker is around Rs 8,320 per month.
Add around 25% hike to it and it will reach around 10,400 or so. However, exact figures will be available later.

Related: Coal India IPO

From which date will the Coal India Wage Hike be effective?
Coal India Wage Hike be effective is reported to be effective from July 2011. That means workers can expect some lumpsum amount payment in form of arrears payment. This new increased wage will be for 5 years.
Coal India Wage Hike

Budget Date 2012 India: 16 March 2012: Railway Budget 14 March 2012

Like last year we had provided the information about the Indian Budget Dates 2011, this year again we provide the information as available at this moment about the Budget Dates. India Budget

In this article, we cover details about Indian Budget Date for the year 2012-2013 for the General Annual Union Budget. Also covered are the details for expected dates of Railway Budget for India for the year 2012-2013

General Union Budget 2012 Date India:

The elections are going to be held in 5 states of India spanning the months of February and early period of March. The last day of elections is slated to be 6th March 2012 and hence there will be no possibility of any budget coming out before 6th March because of the code of conduct applicable by the Election Commission of India. Hence, it is certain that the budget will be announce only after 6th of March when the polling ends.
The date of General Union Budget of India for the year 2012-2013 is now finalized as 16 March 2012 and the Date for Railway Budget for the year 2012-2013 is now finalized to be on 14 March 2012 i.e. 2 days before the Union Budget.

Railway Budget 2012 Date India:

Along with the general budget, the Railway budget is also eagerly awaited, especially by the people whose businesses are dependent on Railways for goods transfer. The railway budget is usually announced a bit earlier than the general union budget. Date for Railway Budget for the year 2012-2013 is now finalized to be on 14 March 2012
In terms of the general expectations from the Budget, here is the list:
- Clarity & implementation about Direct Tax Code (DTC)
- Goods and Services Tax (GST)
- Sustainable Growth as the inflation nos are looking smooth
- New banks allowed to get banking licences
- Reforms are high on agenda
- Tax reduction

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. SREI Infra Bonds

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. PFC Infra Bonds

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

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