The government of India has introduced a new section 80CCF under the
Income Tax Act, 1961 (“Income Tax Act”) to provide for income tax
deductions for subscription to long-term infrastructure bonds and
pursuant to that the Central Board of Direct Taxes passed Notification
No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term
infrastructure bonds offer an additional window of tax deduction of
investments up to Rs. 20,000 for the financial year 2010-11.
This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly.
Bonds issued by companies and financial institutes to the public and deploy the collected money for infrastructural projects. The investors will get Income tax benefits for investing in these bonds.
This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly.
Bonds issued by companies and financial institutes to the public and deploy the collected money for infrastructural projects. The investors will get Income tax benefits for investing in these bonds.
Infrastructure includes roads, bridges, dams, airports, ports, telecomm networks etc.
CBDT has notified New infrastructure Bonds u/s 80CCF.An Individual or HUF can invest in these new infrastructure Bonds upto Rs 20000/- in aFinancial years.Main features of this new section and new notification is given below
India Tax Deductions from Infrastructure Bonds under 80C
CBDT has notified New infrastructure Bonds u/s 80CCF.An Individual or HUF can invest in these new infrastructure Bonds upto Rs 20000/- in aFinancial years.Main features of this new section and new notification is given below
India Tax Deductions from Infrastructure Bonds under 80C
2. Rs. 20000/- can be invested in a Financial year to avail deduction under section 80CCF
3. 20000/- Limit is in addition to 100000/- Limit of section 80C,80CCC,80CCD
4. Tenure of the Bonds will be 10 Years.
5. However Lock in period is 5 years ,after 5 years investor can withdraw money from the bonds
6. After lock in period ,Investor can take loan against these Bonds
7. Issuer of the Bonds is LIC,IFCI( The Industrial Finance Corporation Of India ,IDFC(Infrastructure Development Finance Co. Ltd) and other NBFC( Non Banking Financial Company) classified as infrastructure company.
8. Permanent account Number is must to apply these bonds.
9. Yield of the bond – The yield of the bond shall not exceed the yield on government securities of corresponding residual maturity, as reported by the Fixed Income Money Market and Derivatives Association of India (FIMMDA), as on the last working day of the month immediately preceding the month of the issue of the bond.
In Simple Words u can claim extra Rs 20000 Deduction in addition to Rs 1 Lakh For 80C deduction.But I would suggest you Check out the Interest Rate for such type of Bonds. And the Lock in Period Of Five Years is Must you cannot withdraw the money and you will have to make fresh investment of Rs 20000 every year to get this deduction
3. 20000/- Limit is in addition to 100000/- Limit of section 80C,80CCC,80CCD
4. Tenure of the Bonds will be 10 Years.
5. However Lock in period is 5 years ,after 5 years investor can withdraw money from the bonds
6. After lock in period ,Investor can take loan against these Bonds
7. Issuer of the Bonds is LIC,IFCI( The Industrial Finance Corporation Of India ,IDFC(Infrastructure Development Finance Co. Ltd) and other NBFC( Non Banking Financial Company) classified as infrastructure company.
8. Permanent account Number is must to apply these bonds.
9. Yield of the bond – The yield of the bond shall not exceed the yield on government securities of corresponding residual maturity, as reported by the Fixed Income Money Market and Derivatives Association of India (FIMMDA), as on the last working day of the month immediately preceding the month of the issue of the bond.
In Simple Words u can claim extra Rs 20000 Deduction in addition to Rs 1 Lakh For 80C deduction.But I would suggest you Check out the Interest Rate for such type of Bonds. And the Lock in Period Of Five Years is Must you cannot withdraw the money and you will have to make fresh investment of Rs 20000 every year to get this deduction
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