Section 80CCF allows Non Banking Financial Companies (NBFCs) to issue infrastructure bonds, and investors who invest in these bonds can get an additional tax benefit. An additional investment up to Rs. 20,000 in infrastructure bond consequences into your taxable income been reduced by the invested amount. This is in addition to the Rs.1,00,000 deduction currently allowed under section 80 C. The tax benefit is restricted to the year of investment .Interest of these Tax Saving bonds will be added to taxable income and hence will be taxable.
An Initial Public Offer (IPO) is a means of collecting money from the public by a company for the first time in the market to fund its projects. In return, the company gives shares to the investors in the company. Investors can buy IPO application forms from their share brokers. The minimum application money differs from issue to issue. In a normal issue, the Lead managers decide the value and this would be notified on the form. In a book building issue,
a price range is declared and the investors who quote higher value would be allotted. The maximum application amount in retail segment is Rs.3,00,000. Once the share is listed in the exchange the share of the company becomes freely tradable.