The document discusses various tax saving bonds available in India such as RBI Relief Bonds, IDFC Infrastructure Bonds, and NHAI/REC Bonds. It provides details on the minimum investment amounts, interest payment options, lock-in periods, and tax benefits of these popular bonds. Investing in tax saving bonds allows individuals to claim an income tax deduction of up to Rs. 20,000 in addition to the Rs. 1 lakh deduction available under other tax saving sections. The document concludes that tax saving bonds provide a stable and hassle-free means of investment while reducing tax liability.

1. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
TAX SAVING BONDS
By
Parvathi V

2. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Introduction to Savings Bonds
As the name suggests – Tax Saving Bonds – are instruments used
for Individual Income Tax savings. They have not been as popular
as some of the other Tax saving instruments, but are ideal for
people who have low risk appetite and are looking to preserve
their income in the longer run and also accrue benefit of tax
savings.

3. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Popular Tax Saving Bonds
There are a few tax saving bonds available in the market
which are issued by RBI and other commercial and private
banks/finance institutions. Some of the popular tax saving
bonds are
1. RBI Relief Bonds
2. IDFC Infrastructure Bonds
3. NHAI/REC Bonds

4. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
RBI Relief Bonds
• As the name suggests, these bonds are issued by the RBI. Key
highlights of this bond are:
• Minimum investment is Rs. 1000.
• Interest is compounded half-yearly.
• Maturity period of the bond is 5 years.
• Interest received is tax-free in your hands.
• Advantage:
• You can choose to receive interest half-yearly or at maturity. Half-
yearly interest RBI relief bonds are an attractive option for
investors looking for a regular and stable income

5. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
IDFC Infrastructure Bonds
• Key highlights of the IDFC Infrastructure Bonds are:
• Minimum investment is Rs. 10,000 with a face value of Rs. 5000
per bond.
• Interest payments can be annual or cumulative at maturity.
• Maturity period is 10 years and a minimum lock-in period of 5
years.
• Some of the other popular infrastructure bonds are:
• Infrastructure bonds issued by ICICI and other few private sector
banks.
• Recently, L&T Infrastructure Finance Company was looking to
make a public issue of L&T Infra’s Long Term Infrastructure Bonds
which will have the tax saving benefits u/s 80CCF of the Income
Tax Act 1961.
• LIC Infrastructure Bonds provide tax benefits which are similar to
that of IDFC and L&T.

6. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
NHAI/REC Bonds
• When we talk about NHAI and REC bonds, we are referring to the
category of bonds that let you avail tax saving benefit u/s 54EC of
the Income Tax Act 1961. Any capital gain that is a result of a
transfer of a long term capital asset will not be charged tax, if the
gains are invested in the NHAI or REC bonds. Many investors use
these bonds as a safeguard from capital gains tax. Some
highlights of these bonds are:
• Annual Interest Payments
• A maturity period of 3 years
• Minimum investment of Rs. 10,000
• Tax benefit u/s 54EC

7. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
ADVANTAGE-TAX BENEFITS
• In Union Budget 2010-2011, RBI introduced a new section
80CCF under the Income Tax Act, 1961 – to provide for income
tax deductions for subscription to long-term infrastructure
bonds. These long term infrastructure bonds offer an additional
window of tax deduction of investments up to 20,000 for the
financial year 2010-11 (which was again extended for this
financial year). This deduction is over and above the 1 lakh
deduction available under sections 80C, 80CCC and 80CCD read
with section 80CCE of the Income Tax Act. Tax Saving Bonds are
launched by RBI as well as public & private Enterprises.
• If you invest in tax saving infrastructure bonds, you will be able
to claim a tax relief on investment up to Rs. 20,000. This is in
addition to the Rs. 1 lakh deduction from annual income
available to you u/s 80C, 80CCC, 80CCD of the Income Tax Act
1961.

8. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
CONCLUSION
• We hope that by now you have realized the potential of
tax saving bonds as an effective way of reducing the tax
impact on your finances. We believe that these tax saving
bonds are no-nonsense, hassle free and stable instruments
of investment.

9. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
THANK YOU

10. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
THANK YOU