IFCI Long Term Tax Saving Infrastructure Bonds - Series II: sprism,

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We wish to bring it to your notice that the subscription period for IFCI Long Term Infrastructure Bonds - Series II has been extended upto January 12, 2011. Investments upto a maximum of Rs.20,000 is eligible for deduction u/s 80CCF for the Financial Year 2010-11. The other details of these bonds are as follows:

·         The tax benefit would be limited to a maximum amount of Rs.20,000. The minimum application is one bond (FV of Rs.5,000)

·         The benefit is available only in the year of investment i.e. if the provision prevails next year then the investor has to again invest  Rs.20,000 to gain deduction next year

·         The tenure of the bonds is 10 years. However, the lock-in period is 5 years if the investor chooses the buy-back option (Options 1 & 2)

·         PAN Card is mandatory to invest in these bonds

Terms of Issue:
Options	I	II	III	IV
	Buyback / Non Cumulative Option	Buyback/ Cumulative Option	Non Buyback / Non Cumulative Option	Non Buyback/ Cumulative Option
Face Value (Rs.)	5,000/-	5,000/-	5,000/-	5,000/-
Minimum Application	One Bond	One Bond	One Bond	One Bond
In Multiples of	One Bond	One Bond	One Bond	One Bond
Buy Back Option	Yes	Yes	No	No
Interest Payment	Yearly	Not Applicable	Yearly	Not applicable
Coupon	8% per Annum	8% p.a. annual compounding	8.25% per Annum	8.25% p.a. annual compounding
Coupon Payment Date	January 31st every year	Not Applicable	January 31st every year	Not applicable
Buyback Date	January 31st every year starting from year 2016 to year 2020		Not applicable
Maturity Date	January 31, 2021	January 31, 2021	January 31, 2021	January 31, 2021
Buy Back Intimation Period	Every year between November 01 to November 30, starting from the year 2015 till year 2019		Not applicable
Maturity Amount (Rs.)	5,000	10,795	5,000	11,047
Redemption Amount (In case the buyback option exercised) : (Rs.)
Year 5	5,000	7,347	-	-
Year 6	5,000	7,934	-	-
Year 7	5,000	8,569	-	-
Year 8	5,000	9,255	-	-
Year 9	5,000	9,995	-	-