Infrastructure Bonds

Looking for investments that will give you benefits under section 80CCF (often termed as infrastructure bonds)? Will investing in IRFC and Hudco bonds give benefits under section 80CCF? The answer is NO. These bonds are not covered under section 80CCF. Although, the interest accrued is tax-free if held for the entire maturity period. On the other hand, these bonds can be traded in the market before maturity, but any gains from sale will be treated as capital gain and hence taxable. The offered rates vary from 8.00% to 8.50% depending on the amount of investment and maturity period. These bonds can be good option for long term investments with high liquidity.  Since interest from FDs is taxable, their interest rates should be ~11.5% to match the returns offered by these bonds. Hence, these bonds are a viable option for people in higher tax brackets. In addition to that, the credit rating is also good for both IRCL and Hudco as they are semi goverment organisatio...