Invest in IDFC Infrastructure Bonds and get tax benefits

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Highlights of the issue: Secured, redeemable, non-convertible debentures with tax benefits under the Income Tax Act, 1961 Additional Tax benefits available for investments made up to Rs 20,000/- Rated “AAA” by ICRA & FITCH respectively Interest Income on the Bonds is taxable Details of the Issue:   Option 1 Option 2 Issue opens  Monday, November 21, 2011 Issue closes  Friday, December 16, 2011 Issue Size Not exceeding Rs. 5000 crores Rate of Interest 9% p.a. N/A Frequency of interest payment Annual Cumulative Rating (ICRA)AAA from ICRA and Fitch AAA (ind) from FITCH Face Value Rs. 5000/- Rs. 5000/- Who can apply  Resident Individuals/HUF Maturity / Redemption 10 years from the Deemed Date of allotment Lock in period  5 years from the deemed date of allotment Listing NSE and BSE Minimum subscription Rs. 10,000/- Registrars  Karvy Computershare Private Limited Buy Back Date Date falling five years and one day from the Deemed Date of Allotment Maturity Amount  Rs 5000 per Tranche 1 bond Rs. 11,840 per Tranche 1 Bond Buy Back Amount Rs 5000 per Tranche 1 Bond Rs 7695 per Tranche 1 Bond

. Tax Benefits: Under section 80CCF of Income Tax Act, the amount not exceeding Rs. 20,000 per annum, paid or deposited as subscription to long term infrastructure bonds during the previous year relevant to the assessment year beginning April 1, 2011, shall be deducted in computing the taxable income. This is over and above the Rs. 1,00,000 tax benefit available under section 80C, 80CCC, 80CCD read with section 80CCE. .

Tax Adjusted Yield to Investors   Tax Rate (%) Series 1 Series 2 Series 1** Series 2** 10.3 10.72 10.19 11.83 11.39 20.6 12.75 11.54 15.15 14.14 30.9 15.19 13.10 19.11 17.35 **Assuming Buy Back of Bonds on Buy Back date . Note: The Bondholders are required to hold the Bonds for a minimum period of five years before they can sell the same or utilise the buy-back option offered by the Company. (All figures sourced from the Prospectus).