IDFC long term infrastructure Bond

#1
In the Union Budget 2010, the Government provided an additional income tax benefit of Rs 20,000 under section 80CCF of the Income Tax Act, 1961 for investments made in long-term infrastructure bonds . This move was intended to provide a fillip to infrastructure finance and provide an opportunity to individual tax payers to reduce their tax liability.

In light of the same Infrastructure Development Finance Company (IDFC) Limited , had issued long-term infrastructure bonds (September 30, 2010 to October 25, 2010) which resulted in record 2,35,750 applications worth 436 crore as against the target of 3,400 crore. The success of such bond issues depends upon the timing of the issue; which IDFC got it wrong due to tight liquidity situation prevailing in system then, which thus resulted in a lukewarm response.

IDFC long term Infrastructure Bond
 

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