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It is the time to search for tax saving measures to avoid income tax. The latest in the offer are tax saving infrastructure bonds, shortly called as infra bonds. The important companies that are offering infra bonds for the year 2013 are:
1) NHAI - National Highway Authority of India
2) PFC (Power Finance Corporation)
3) IRFC - Indian Railway Finance Corporation
4) HUDCO (Housing and Urban Development Corporation)

These companies along with REC and L and T Infra are raising funds to meet the investments of the future projects.

The period of bonds usually varies from 5 to 10 years. And the interest rates are from 8 percent per annum to 9 percent per annum. There are buy back and pay out options. In the buy back option, the company will buy the bonds after the completion of lock in period.

In the pay out option, the companies will pay the interest monthly or quarterly directly to the bank accounts of the customers. You can keep them in the demat form and sell the bonds through open market after the completion of lock-in period.

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