By investing in infrastructure bonds in India, an investor can save on taxes as provided under Section 88 of the Income Tax Act, 1961. The two significant economic factors playing vital role in the investment decisions in the infrastructure bonds are Inflation and interest rate movements. For instance, price of a bond will fall if interest rates rise and vice-versa.
Investments in Infrastructure
|After 3 years||After 5 years|
|Obligatory Returns to defy Inflation Effect||25,194||29,387|