Infra Bonds Exemption To Increase To Rs 1 lakh

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View quick summary The Indian Government is likely to increase the tax exemption offered by Infrastructure Bonds, which stands at Rs 20,000 now, to Rs 1,00,000. Incentives are also being chalked out for corporates and PSUs by offering tax exemption of up to Rs 1,000 crore on investing in Infra Bonds.
The estimated requirement to fund India’s infrastructure projects for the 12th plan period is $ 1 trillion. Infrastructure companies will raise half of the funds as debt through bonds.
Deductions offered by Infrastructure Bonds are over and above the savings offered by Section 80C of the Income Tax Act, 1961. Section 80C has a tax saving ceiling of up to Rs 1,00,000 which can be claimed through mutual funds, Public Provident Funds and insurance premiums.