Monday, January 23, 2012

Indian Railways Finance Corporation to Launch Tax free Bond Issue from January 27

Current open Infra Bond Application form

 

Buy Tax Saving Mutual Funds Online

 

IRFC offers up to 8.30% to retail investors and 25 bps lower to institutions in tax-free issue

 

Indian Railways Finance Corporation (IRFC) will launch its tax-free bond issue, offering up to 8.30% to retail investors and 25 basis points lower to institutional investors, in an attempt to lure retail bids. But the devil is in the detail of the so-called stepdown clause — those retail investor who buy in the secondary market will get coupon that's payable to institutions, depriving them of primary market benefits.


The bonds will be available in tenures of 10 years and 15 years, where with 8.15% on the 10-year bond and 8.30% on the fifteen-year bond. The institutional investors and high net worth individuals will be paid 7.90% on the 10-year bond and 8.05% on the 15-year bond.


The bonds will come with a step-down clause, according to which only the original allottee, who has subscribed under the retail category will receive the coupon of 8.30%. Once the bond is sold in the secondary markets, the coupon gets reduced to 7.90% or 8.05%, as the tenure of the bond may be.


"We are offering a premium on interest to retail investors since we want more retail participation. This will also help stop malpractices in the application process," a senior official from IRFC said.


Bids for its . 3,000-crore issue opens on January 27. The issue will have the green-shoe option to retain up to . 6,300 crore. IRFC, unlike other issuers of tax-free bonds this year, National highway Authority of India and Power Finance Corporation, are aiming to draw in retail investors who did not show enough enthusiasm. IRFC would use the funds raised for financing primarily rolling stocks for the railways, electrification projects and rail doubling.
 

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How to apply to IRFC Bonds?

Apply for IRFC Tax Free Bonds forms below

Download IRFC Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you

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Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available are:
1. HDFC TaxSaver
2. ICICI Prudential Tax Plan
3. DSP BlackRock Tax Saver Fund
4. Birla Sun Life Tax Relief '96
5. Reliance Tax Saver (ELSS) Fund
6. IDFC Tax Advantage (ELSS) Fund
7. SBI Magnum Tax Gain Scheme 1993
8. Sundaram Tax Saver

 

 

 

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