1. Infrastructure Bonds
• The proceeds of these bonds are invested by the company in
the infrastructure facilities of the country.
• Such bonds carries a fixed rate of interest to be paid at the
time of maturity.
• These bonds have become a tool of tax planning. If a person is
investing in infrastructure bonds, he / she will be eligible for
deduction upto maximum of Rs.20,000.00 every financial year.
• These are long term investment bonds issued by any non
banking financial company like Industrial Finance Corporation
of India or IDF.

2. • These companies are an ombudsman borrowing
from the investors and lending to the
government.
• These bonds are used to fund government's
infrastructure projects.
• Thus an individual is directly helping in nation
development.