A lot of Investor hurry in Tax Saving, they confused between Long Term Infrastructure Bonds & Tax Saving Bonds.
Where to Invest Tax Saving or Infra Bonds.
If you are invest in Infrastructure Bond you can reduce your Gross Income. Under Section 80CCF Rs. 20000 can deducted from your Gross Income when calculating Tax.
Tax Free Bonds pay you Tax Free Interest Income. There is no deduction for the principal invested in these bonds.
LIC is not offering any Infrastructure Bonds under 80CCF don't wait for comming this bond
Difference between Infrastructure Bond & Tax Saving Bonds
Where to Invest Tax Saving or Infra Bonds.
If you are invest in Infrastructure Bond you can reduce your Gross Income. Under Section 80CCF Rs. 20000 can deducted from your Gross Income when calculating Tax.
Tax Free Bonds pay you Tax Free Interest Income. There is no deduction for the principal invested in these bonds.
LIC is not offering any Infrastructure Bonds under 80CCF don't wait for comming this bond
Difference between Infrastructure Bond & Tax Saving Bonds
Particular | Tax Free Bond | Infrastructure Bonds |
Income Tax Section | No deduction | under 80CCF deduction upto 20000 |
Interest | Tax Free Interest | Taxable Interest |
Lock In Period | No Lock in | 5 years (you can't withdrawal before) |
Issuer of Bonds | IRFC, NHAI, HUDCO , PFC | REC, L&T , IDFC, IFCI, PFC, PFS , SREI |
Name | Tax Free Bond | Long Term Infra Bond |
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