Government to issue infrastructure bonds with tax benefits
By IANSFriday, July 9, 2010
NEW DELHI - The government Friday said it will issue infrastructure bonds with tax breaks to promote investments in the infrastructure sector.
A finance ministry statement said infrastructure finance companies as classified by the Reserve Bank of India will issue the bonds. These include the Industrial Finance Corporation of India (IFCI), Life Insurance Corporation of India (LIC) and Infrastructure Development Finance Company (IDFC).
Investment of up to Rs.20,000 in these bonds will provide tax relief under sections 80C, 80CCC and 80CCD of the Income Tax Act.
The bonds will have a lock-in period of five years.
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