This is to inform investors that, as per the Information Memorandum of August 09, 2010, the opportunity to exercise the option of buyback is available for bonds held in Option I and II, as shown in the table below:
If you wish to exercise the buyback option available in 2017, you must download and send the duly signed Buyback Option Form, after carefully reading the instructions contained therein, to the Registrar & Transfer Agent during the buyback intimation period listed in the above table, which is no later than August 31, 2017.
If bonds are held in physical mode, payment will be made only upon submission of the ORIGINAL BOND CERTIFICATE; if bonds are held in demat form, payment will be made only upon extinguishment of bonds. As a result, please make sure your demat account is current.
If you have any questions, please contact the Registrar & Transfer Agent at Registrar & Transfer Agent at Registrar & Transfer Agent at Registrar & Transfer Agent at Registrar & Transfer
What is the procedure for claiming IFCI bonds?
It has come to our attention that certain firms/entities, such as Lotus Securities, are sending individual communications to registered bondholders of IFCI Long Term Infrastructure Bonds issued by IFCI, with its registered office at IFCI Tower, 61 Nehru Place, New Delhi 110019, stating that the bonds will be redeemed by them.
The General Public is thus advised that IFCI has not authorized or appointed anyone to act on its behalf for redemption. Bondholders are encouraged to use extreme caution and diligence when dealing with such firms/entities in order to avoid any loss as a result of dealing with these unlicensed third parties.
Please note that IFCI is not responsible for any bondholder’s encashment decision made through these Firms/Entities if the bondholder relies on any such representations/statements made by the Firms/Entities.
Each bondholder should conduct their own independent appraisal or assessment of the transaction. Bondholders should call IFCI at +91-11-41792800, 41732000 (Extn. No. 2475/2457 & 2420) if they require any assistance.
How do I get my infra bonds back?
Bonds are redeemed Registered bondholders relinquish their legally discharged bond certificates (by signing on the reverse of the bonds with a Revenue Stamp of Re. 1/-) on the date of maturity. The redemption record date is one month before the deemed encashment / redemption date.
Is IFCI bond interest taxable?
Is it true that these infrastructure bonds are tax-free? No, the interest on these bonds is not tax deductible. The interest earned by the investor is subject to taxation.
What exactly is an IFCI bond?
Instrument. Series-I Unsecured, Redeemable, Non-Convertible Long-Term Infrastructure Bonds with benefits under Section 80 CCF of the Income Tax Act of 1961. Bonds have a face value of $5,000/- each. Date of Allotment Assumed.
How can I purchase infrastructure bonds in 2021?
If you have a demat account, you can apply to invest in an infrastructure bond online. You must complete an online application form.
These relationships can be applied for in a physical form. You’ll need a PAN card that has been self-attested. As part of the KYC (Know Your Customer) procedure, you must provide proof of identity and address.
After the lock-in period has expired, these bonds can be exchanged on stock exchanges like stocks.
What happens when infrastructure bonds reach their maturity date?
As a result, the tax-advantaged long-term infrastructure bonds were not really tax-free bonds.
The annual interest payout option and the cumulative interest option were both available to the investors.
While investors who chose annual interest distributions have already paid tax on the amount of interest received, those who chose the cumulative option would pay more tax in the year of investment than they saved in the year of investment.
Confusion over Tax-Saving vs. Tax-Paying Infrastructure Bonds
Taxpayers who take advantage of free bonds end up paying more in taxes than they receive in benefits.
Taxation
Because the interest on long-term infrastructure bonds is taxable, the interest earned by the investors annually for those who chose the annual option and aggregate on maturity for those who chose the cumulative option will be added to their taxable income.
As a result, tax payable will be lower for investors in lower tax bands and higher for those in higher tax brackets.
TDS
For Resident taxpayers who choose the cumulative option in physical format, the interest payment will be subject to a 10% Tax Deducted at Source (TDS) if the interest payment upon redemption exceeds Rs 5,000.
The TDS rate will increase to 20% if the bondholder does not have a valid PAN or if the investor has not submitted his tax returns for the last two years and the total TDS and TCS in each of those years is Rs 50,000 or higher.
TDS of 31.2 percent would be applied to interest payouts for non-resident taxpayers.
How to save TDS
Resident bondholders must submit Form 15G / 15H, as appropriate, to avoid TDS. Those who did not disclose their PAN data at the time of investment must update their PANs with the various RTAs within the time frames set by the bond issuers.
Non-Resident bondholders must submit a tax officer’s order under Section 197 / 195 setting NIL / lower TDS rates to the appropriate RTAs before the deadline to guarantee that TDS is collected at the rates provided in the order.