BLEND Money Back Policy

LIC Long Term Infrastructure Bonds

Investment in Bonds of  LIC  upto Rs 20,000 in addition to Rs. 1Lakh in 80C are Eligible for Tax Exemption under Section 80CCF.
Finance Minister in Union Budget had introduced a new section 80CCF under the Income Tax Act, 1961 that provide income tax deduction of Rs. 20,000 in addition to Rs 1 Lakh available under other provisions for claiming tax deductions for investments made in the Long Term Infrastructure Bonds that are notified by the central government.

 

LIC Infrastructure Bond at Glance:



Term: 10 years
Minimum lock in period: 5 years
Loan on Bond: After 5 years
Interest Rate: 7.85%-7.95% after tax.
Exit options: Buy back or through Demat account
Open for Individual or HUF.

Any individual or HUF can invest in LIC’s Infrastructure Bonds Between Rs.5000 – Rs.20,000/- This will be over the Rs.1 lakh deduction allowed under Section 80C.

Tax Benefit example:
If you are in highest tax payers bracket of 30% can save an additional Rs 6,000 and if you happen to fall in the lower tax bracket then you can still save Rs.2,000/- by investing in LIC infrastructure bonds this financial year.

This announcement will boost the infrastructure projects in India. The deduction can be claimed by individuals or HUFs for the investments made in subscribing the long term infrastructure bonds during the FY 2010-11

Note:
The above is the product summary giving the key features of the Bond. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.