Everybody interested to invest in fixed income Bonds. Just received investor asking about can I take addition benefit(80c+) for investing in HUDCO/REC/PFC tax saving bonds. people interest to take additional benefit for tax purpose, but bonds name confusing, what’s benefit of these bonds. How I save Tax.
First clear about what type of tax purpose bonds available.
- Tax Free Bonds : The interest on these bonds is Tax Free to Investor. Tax benefit under Section 10(15) (iv) (h) of the Income Tax Act, 1961. (Read for more details Tax Free Bond – Question in your mind)
- Capital Gain Bond 54EC : These Bonds specifically meant for the investor who have earned long term capital gains & would like to save capital gain tax on them. If you sell your property and take long term gain then you invest in these type of bonds. Only 2 Bonds available under these category REC & NHAI Capital Gain Bond. Tax benefit under section 54 EC. (Read more Details How to – Capital Gain Bonds )
- Infrastructure Bonds : Income Tax payers can declare a reduction of up to Rs. 20,000 as per Section 80CCF by making investment in this products. This year 2012-13 Scheme is withdraw by Govt.
Note : Infrastructure Bond Investor interested take additional benefit for Tax Saving New Scheme Launched by Govt. Rajiv Gandhi Equity Scheme (RGESS). Tax Benefit under Section 80CCG.
If any question related topic ask