L&T Infrastructure Tax Saving Bond

L&T Infrastructure Finance Company Limited, a 100% subsidiary of L&T Limited and registered with RBI as an Infrastructure Finance Company has come out with a public issue of Tax Saving Bonds.

Issue already open & closes on 02/11/2010.

Issue size of Rs.200 Crs. with an option to retain oversubscription upto Rs.500 Crs.

Income Tax benefit u/s. 80-CCF upto Rs.6,180/- for an investment of Rs.20,000/-

The Income Tax benefit is over and above 80-C, 80-CCC & 80-CCD.

Face Value of the Bond is Rs.1,000/- and minimum investment should be 5 Bonds

Maturity after 10 years & Lock in period is 5 years.

Buyback option available after 5 years & 7 years.

7.50% interest under 5 year buyback option & 7.75% interest under 7 year buyback option.

Physical & Demat options available. No TDS for interest under Demat option.

“CARE AA+” rating by CARE & LAA+ rating by ICRA.

Very attractive tax adjusted yield of more than 17%.

Source:Geojit

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