IDFC to raise Rs 5,000 cr via tax-saving infra bonds

Infrastructure Development Finance Company (IDFC) is planning to raise up to Rs 5,000 crore through tax-saving bonds in the current fiscal. The proceeds from bonds with a face value of Rs 5,000 would be used for investment in infrastructure sector. IDFC had raised Rs 1,400-crore in three tranches by way of tax-savings bonds in the previous fiscal.In order to channelise savings for development of infrastructure sector, the government in 2010-11 had included long-term tax savings bonds in the ambit of Section 80 CCF of the Income Tax Act. Investors in such bonds will get tax exemption on investment up to Rs 20,000 annually. This is over and above the existing tax saving limit of Rs one lakh. Earlier this week the finance ministry had allowed IDFC to raise funds from long term infrastructure bonds