Tax sop for IDBI bond

MUMBAI, February 7: The Industrial Development Bank of India’s (IDBI) Infrastructure Bond 98, which is open for subscription, has offered tax benefits available under Section 88, or under Section 54EA or Section 54EB of the Income Tax Act 1961 to investors.

Not only does the bond offers tax breaks, it also offers a yield of upto 22.11 per cent (if bonds held for three years and income tax benefit claimed u/s 88). Investors cannot claim all the benefits for a single investment, he can split his investment into two parts and claim benefits under Sec 88 and under Sec 54EA or under Section 54EB.