Thursday, December 27, 2007

Tax Savings Products - BONDS

Terms of investments

Investment: Infrastructure bonds issued by banks like ICICI Bank and IDBI. Returns: Returns are fixed and in the range of 5-6% per annum.

Availability

Eligibility: Individuals

Tax benefits

IT Section applicable: 80C

Limit on investment: Upto Rs 1 lakh.

Withdrawal: Interest is Taxed

Liquidity

Premature withdrawal: Minimum lock-in of 3 years.

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