Email Question: Tax Proof for Demat Infrastructure Bonds

by Manshu on December 6, 2010

in Tax

What tax proof can I use If I invested electronically through a Demat account in the infrastructure bond?

I got an email about this yesterday, and there have been several comments on it as well. People are interested in knowing what they can use as tax proof when they apply for the infrastructure bonds in the dematerialized form since there is no clear communication on this.

Here is my response, which is really drawn from the knowledge of our commenters like Loney, Ajay, Briney among others:

There is a fair bit of confusion on this as some people have actually received IDFC Allotment Advice letters that can be used for tax proof.

I’m not sure why others have not received it – but it could be a matter of time when you receive it too, or your address is incorrect so you might want to check that. If you get that, then you can obviously use that.

If not, then some brokerages have advised that you can use the NSDL Holding Report from your account as proof of investment, so in the absence of anything else you’ll have to use that.

Edit: Reworded slightly

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