IDFC BOND or LIC BOND for 20K tax saving

POSTED BY Rajendran ON September 30, 2010 11:59 pm COMMENTS (9)

Hi,

  I would like to know whether the current IDFC BOND is better for the 20K tax saving or Do  I need to wait for the bond from LIC.

I heard news like LIC is planning to offer term insurance along with their longterm infrastructure bonds is this true?

9 replies on this article “IDFC BOND or LIC BOND for 20K tax saving”

  1. Manish says:

    Question for forum:-
    Will LIC bond maturity be non taxable?

    1. The basic structure & rules of infrastructure bonds are decided by Govt. of India & is same across all financial institutions. So, it doesn’t matter, who is issuing them. The interest portion of these bonds will be taxable irrespective of the company.

      Hope it will help you.
      MoneySavingsHelp

  2. Manish says:

    FYI -TDS will not be deductable but yes maturity is taxable

  3. Manish says:

    Are we sure that maturity is taxable?

  4. Also, please consider one more point that on maturity interest is taxable. So, take that point also while doing all calculations.

    Hope it will help you.
    MoneySavingsHelp

  5. jitendra solanki says:

    Since insurance part of LIC Bond will be very small, you can’t compare the two on the sae benefit.

    In any case the rate of interest won’t vary much.IDFC is at 8%.LIC will be the same,if not high.

    Yes as hemant said,the real benefit would be in physical form.but in that case we will have to see the benefits or process for buyback.

    with Demat it is simple.I hope LIC does not make cumpulsory at later stage to have them demateralized for buyback.

    Or LIC will not have any buyback because of Insurance component.

  6. Rate may be different – on upper or lower side we don’t know.

    Insurance component will be very small.

    Benefit of LIC bond will be no demat account required – IDFC bond are only available in demat form.

    1. Yes IDFC Bond requires Dmat Account but many brokers are providing free Dmat account with IDFC Bond. There will be no AMC if that dmat will not have any other transactions for 10 Years.

      If any other transactions will be there in Dmat then AMC will be applicable.

  7. rakesh says:

    The rate of returns offered by all the companies would be the same, however if you have heard that LIC will offer term insurance plan then its worthwhile to wait.

    Rakesh

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