Which is best long-term infrastructure bonds as notified by the Central Government in budget 2011 for additional 20,000 investment for tax saving.
If I am not wrong the interest earned on infra bond is taxable and lets think logically if we don’t invest 20000 then the tax deducted will be app 2000 per yr and we get 18000 to invest in equity or if we invest in infra then after 10 yr @ 8% pa compounded annually you will earn app 40000 which you mite earn on FD. Am not sure how much am correct but Plz reply to this post with further addition as am a novice but somehow arrived with this logic.
THANX and waiting to hear
CAclubindia
