Skip to main content

Infra bond tax gain may stay one more year

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

The finance ministry may extend tax benefits for investment in infrastructure bonds for one more year. But the limit of~20,000 may not change, despite appeals from the industry.

This would mean a tax saving of~2,000 to~6,200 for an individual, depending on the tax slab.

A finance ministry official said the revenue department was considering allowing income-tax deduction on investments up to~20,000 in infrastructure bonds in Budget 2013 as well. The ministry may also consider allowing some more entities to issues such bonds, but it is not in a position to raise the cap, given its tight fiscal situation and bleak revenue prospects.

The government is struggling to meet its tax and non-tax revenue targets. Net direct tax collections in the first nine months of the year (April-December 2011) stood at~3,23,955 crore, which is just 61 per cent of the Budget Estimate of~5,32,651 crore for 2011-12. This leaves the revenue department with the Herculean task of collecting~2,08,696 crore in the remaining three months.

Section 80CCF of the Income Tax Act makes an investment in infrastructure bond eligible for tax deduction. This is in addition to the deduction of~1,00,000 allowed under Sections 80C, 80CCC and 80CCD of the Act.

The deduction was first allowed in Budget 2010-11 for meeting the dual objective of encouraging savings and meeting long-term needs of the infrastructure sector. The benefit was allowed in Budget 201112 also, but the government did not increase the ceiling despite demands from the industry.

In 2010, the government had allowed Life Insurance Corporation, Industrial Finance Corporation of India (IFCI), Infrastructure Development Finance Company (IDFC) and any non-banking finance company classified as infrastructure finance company by the Reserve Bank of India — such as L&T Infrastructure — to issue tax free infrastructure bonds.

In Budget 2011, the government also allowed National Highways Authority of India (NHAI), Indian Railway Finance Corporation and Housing and Urban Development Corporation Ltd to issue such bonds. This year, NHAI, IFCI, L&T Infra, IDFC, Power Finance Corporation, Rural Electrification Corporation and SREI Infrastructure Finance have raised long-term funds through issuance of these bonds.

A recent pre-Budget meeting with Finance Minister Pranab Mukherjee saw banks reiterating their long-standing demand of allowing them to issue tax-free infrastructure bonds to support long term funding needs. They also sought special incentives for those investing in infrastructure bonds, and asked for clarity and broadening of the definition of infrastructure.

The tenure of tax-free infrastructure bonds is a minimum of 10 years with a lock-in period of five years. Any company raising money through such bonds is not allowed to offer any interest rate that is higher than the yield of 10-year government bonds.
 

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

------------------------------------------------
How to Muthoot Finance NCDs ?

Apply for Muthoot Finance NCDs forms below

Download Muthoot Finance NCD Application Forms

Submit the filled up form to Collection canter near you

 

Popular posts from this blog

Bear markets may kill, but bulls always return with vengeance

Average Gain Between Any Two Downturns Has Been 186% IF you have lost a fortune in shares by now, the best way to make it up perhaps could be by buying some more. Since the Great Depression of 1929, the world has undergone 12 major bear market phases. The average bear market has lasted about 22 months, and the market has fallen by an average of 51%. However, the average gain during the bull market between any two downturns has been an eye-popping 186%. The index here in question is the S&P 500. Bull markets — after every recessionary phase — have always been good for investors. All major bull rallies since end-1930 have resulted in markets gaining between 50-500%. Historic numbers show that the magnitude (size or breadth) of a bull market is much heavier than that of a bear market. The million dollar question is: Are we at the threshold of another bull market rally? Markets could go up intermittently, but convincing rallies will take time to happen. The current bear phase is...

Stick to Good Fund Manager who Can Multiply Your Investment

A manager may be the difference between the best and worst funds. Here's how you can find the right one    Does a mutual fund manager make a difference to your investment? The answer may not be as easy as you think, since most best-performing mutual funds have moved away from individualistic fund management to process-driven methods, limiting the scope of an individual's role in investment decisions. In fact, many fund managers would speak at length about how the "system" their fund house has in place makes their task of picking stocks easy even though it restricts their freedom. Still, the question is important, especially after recent reports that the Securities and Exchange Board of India ( Sebi ) may ask fund managers to disclose to investors their track record of managing money. Let us take a look at the universe of large-cap funds over the past five years. According to Value Research, an independent mutual fund tracking firm, the topper in the category is DSP...

NRIs and direct taxes code (DTC)

DTC Proposes To Do Away With Special Provision That Allows NRIs Liberalised Duration Of Stay In Country      THE new direct taxes code could bring a large number of global Indians under the tax net, as it does away with a provision that allowed individuals to escape tax in any country citing double tax avoidance.    The new legislation, introduced in Parliament on Monday, says an individual shall be a resident of India in any financial year if he is in the country for more than 59 days in that year, and has been has been India for more 365 days in four preceding financial years. A number of Indian industrialists including Vedanta's Anil Agarwal and Essar's Ravi Ruia have acquired non-resident status over the years.    The DTC has only attempted to clean up the provision in line with the laws globally. A phrase "being outside India" in the existing income tax law exempted individuals who stay outside the country for six months from paying taxes. This was prone ...

Tata Fixed Income Portfolio Fund dividend

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)       Tata Mutual Fund has announced dividend under the dividend option of Tata Fixed Income Portfolio Scheme B2 Plan A-DQ, Tata Fixed Income Portfolio Scheme B2 Reg-DQ and Tata Fixed Income Portfolio Scheme B2 Direct-DQ. The record date has been fixed as August 29, 2013. Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C. Invest Tax Saving Mutual Funds Onlin...

IDFC Classic Equity Fund

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   IDFC Classic Equity Fund IDFC Classic Equity is a large-cap equity fund which currently has assets under management worth Rs. 158.52 crore. It was launched in August 2005. The fund is benchmarked against the BSE-200 Index. Performance YTD 1-Year 3-Year 5-Year Since Inception IDFC Classic Equity 0.93 26.61 6.30 1.01 11.65 BSE 200 1.52 17.31 6.00 1.99 12.98 All figures in % as on January 31, 2013; Returns above one-year in CAGR terms ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now