what is the meaning of l&t infra bond? How much interest will the bonds carry?
Dear Friend, L&T Infra Finance had successfully closed its second Long Term Infrastructure Bond Issue in March 2011. This tax saving bond issue was oversubscribed. The revenue generated from investors is invested indirectly on a long-term basis in infrastructure projects across the country. As per section 80CCF of the Income Tax Act, investors got a tax relief of up to Rs 20,000 over and above Rs 1,00,000 under 80C by investing in these bonds. The 2010A and 2011A Bond Series provided investors an annual interest rate of 7.5% - 7.75% and 8.2% - 8.3% respectively and the flexibility of investing for 5 years or 10 years with a buy back option of 7 years on a cumulative or annual basis of returns. In addition to this, the 2010A & 2011A Bond Series provided investors with the option of retaining the Bond in Physical or Demat form.