Fintotal News Analysis | Infra Bond Limit May be Raised to Rs 50K
Infra Bond Limit May be Raised to Rs 50K
Ruby Jacob, 07 Feb 2012

According to reports the government is to increase investment limits on infrastructure bonds from the existing cap of Rs 20,000. Infrastructure bonds were first reintroduced in 2010-11 as investments qualifying for tax breaks. Although originally tabled in for a year they were extended for one more year in 2011.

Section 80 CCF of the IT Act permits investment in infrastructure bonds to be tax deductible. Depending on tax slab a person can save from Rs 2,000 to Rs 6,000 by investing in them. Infrastructure bonds are beneficial for both investors and the economy. Money raised from the issue of such bonds is used for funding various infrastructure projects in the country.

For the financial year 2012-2013 the economic affairs department of the finance ministry is considering to raise the ceiling on investment in infrastructure bonds to Rs 50,000. The government is also set to allow new entities to raise funds through infrastructure bonds.

Get the all financial products under one roof only at

you will NEVER GO WRONG with us!

Unbiased . Best Deals . Appropriate Products . No Mis-selling