Infrastructure bonds

1. Infrastructure Bonds
•The proceeds of these bonds are invested by the company in
the infrastructure facilities of the country.
•Such bonds carries a fixed rate of interest to be paid at the
time of maturity.
• These bonds have become a tool of tax planning. If a person is
investing in infrastructure bonds, he / she will be eligible for
deduction upto maximum of Rs.20,000.00 every financial year.
•These are long term investment bonds issued by any non
banking financial company like Industrial Finance Corporation
of India or IDF.

2. •These companies are an ombudsman borrowing
from the investors and lending to the
government.
•These bonds are used to fund government's
infrastructure projects.
•Thus an individual is directly helping in nation
development.