The government has introduced a new tax investment option under section 80CCF, wherein an investment upto Rs. 20,000 is exempt from tax, when invested in specified infrstricture bonds. The tax benefit is explained in the table as below : Tax Rate                                     Investments in Infrastructure Slab Tax Savings                                                 Returns After 3 years   After 5 years 30%         6,000                                          20,000       32,139 20%         4,000                                          27,485       30,139 10%         2,000                                          25,485       28,139 Frankly, there is not too much among the infr-structure bonds as they almost offer same thing.  All issuers will have sound financial to ensure safety/security for the money. Moreover since it’s going to be listed on exchanges, the yield would be roughly the same.  Further, infrastructure Bonds do not offer any protection against high inflation since the rate of interest they offer is pre-determined. Infrastructure bonds (long term) do help you save some money in form of tax savings. However, before investing, you should consider the tax bracket you fall under, the inflation adjustment till maturity date and your risk appetite. So if you are a young person, falling under lower income tax slabs but having more appetite to risk considering the long time horizon, the Infrastructure bonds may not be the best vehicle for your money. On the other hand, if you already have significant amount of investments in equity and looking to rebalance your portfolio with some extra tax benefits, then you may consider investing in Infrastructure bonds. We at Taxmantra.com have the expertise in handling issues relating to individual taxation ( Tax Returns + Tax Support + Tax Planning). Do contact us, in case you require any assistance from us.