LIC Infrastructure Bonds

LIC Infrastructure Bonds:

If you are a taxpayer then you can save more tax by investing in LIC Infrastructure Bonds.  Additional Rs.20,000 Tax Exemption under Section 80CCF.

LIC Infrastructure Bond at Glance:

  • Term: 10 years
  • Minimum lock-in period: 5 years
  • Loan on Bond: After 5 years
  • Interest Rate: 7.85%-7.95% after tax.
  • Exit options: Buyback or through Demat account
  • Open for Individual or HUF.

Any individual or HUF can invest in LIC’s Infrastructure Bonds Between Rs.5000 – Rs.20,000/- This will be over the Rs.1 lakh deduction allowed under Section 80C.

Tax Benefit example:
If you are in the highest taxpayers bracket of 30% can save an additional Rs 6,000 and if you happen to fall in the lower tax bracket then you can still save Rs.2,000/- by investing in LIC infrastructure bonds this financial year.

LIC infrastructure bonds not only offer capital safety but also offers fixed returns through ECS.

The infrastructure bonds will have a maturity of 10 years and a lock-in period of 5 years.

After the lock-in period is over, you can ask the issuer (LIC) to buy back bonds Or you can trade these bonds in the stock Exchange.

You should have a Demat account to invest in infrastructure bonds but it’s optional. You can get the infra bond in physical form too.

Apart from LIC, Infrastructure bond is also offered by following companies:
Industrial Finance Corporation of India (IFCI),
Infrastructure Development Finance Company (IDFC) IDFC Infrastructure bond and
Non-Banking Finance Company (NBFCs) who are classified as an infrastructure finance company by the Reserve Bank of India (RBI)
Life Insurance Corporation of India (LIC)

This bond will boost the infrastructure projects in India and at the same time, you will get tax benefits and a good return. So help India grow.

The above is the product summary giving the key features of the Bond. This is for illustrative purposes only. This does not represent a contract and for details please refer to your policy document.

Also Read  LIC's SIIP Plan No 852
  1. what is the last date for applying the lic’s infracture bond??

  2. LIC INFRA BONDS – Has LIC launched any such scheme? Details and application form for purchase required.

  3. M.L.Suryaprakash October 5, 2010 at 2:11 pm

    I want to buy long term infrstructure bonds for Tax saving purpose. Please tell me where and when they will be available.

  4. dharmendra kumar October 4, 2010 at 9:24 pm

    please provide complete details of long term infrastructure bond and how to get it.

  5. 2. can i get application from the LIC branch office
    , malakpet, hyderabad on 04 oct 2010.

  6. as a broker to sell these infrastructure bonds 2010, what i get in return.

  7. when open LIC infrastructure bond .please give me deatail .

  8. dr anup kr bhattacharya October 1, 2010 at 11:30 pm

    kindly send me 2 lic infrastructure bond forms to:

  9. I am interest in LIC Infrastructure bonds pls. provide m the details, such as

    How much tax will be deducted from Interest payment.
    What is the Interest rate inclusive of Tax .
    Is the interest compounded or fixed
    The bonds maturity value is fixed or it depends upon the interest rate prevailing at the time of maturity.

  10. I want information on LIC Infrastructure bonds

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