Tax Deductions from Infrastructure Bonds under 80C : 2012-2013

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.

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 

 

1. New section can be availed by individual or HUF only.

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

Documents Required For Home Loan

The documents that are required in the procedure of home loan are similar across all the banks. It may be differ in several banks depending on particular necessities. Once the formalities were completed getting the loan is quick and easy process. Without all the necessary documents you are not eligible for processing the loan. Hence it is one of the most important parts while applying for home loan.

Before applying for the home loan one need some important documents along with them for further proceedings. The lists of such documents are mentioned below.

• Age proof
• Identity proof
• Address proof
• Income proof
• Last six months bank account statement
• Pass port size photographs of applicant

Following is the list of documents that are required for home loan

Proof of Identity

The documents that are considered as Proof of identity are:

• Voter’s ID card
• Driving License
• Pan card
• Photo Credit card
• Police or government department ID card

Proof of Income

• Latest salary slips showing all deductions
• IT returns for the last two years
• Computation of income for the last twelve years certified by CA
• Bank account statement

Proof of Residence

• Electricity Bill
• Telephone Bill
• Latest credit card statement
• Receipt of latest LIC policy or insurance premium
• Latest NSC

Home Loan in Jaipur 

Tax Benefits under Section 80DD

What is Section 80DD?
Section 80DD comes in the law of India Income Tax Deductions. This is a deduction in respect of medical and other maintenance available to an individual who: 
Incurs any form of medical treatment, training or rehabilitation expenditure of a disabled dependant; or
Deposits any amount in schemes framed under Life Insurance Corporation or Unit Trust of India for the maintenance of a disabled dependant.

 A lump sum amount or annuity is paid to the dependant or to his/her nominee in whom the dependant draws the benefit incase of death of individual depositing money in the scheme.

Herein, the individual nominates either the handicapped dependant or any other person or trust to receive payment on his/her behalf for handicapped dependant’s benefit.

What if the handicapped dependant predeceases the individual?

In such a case an amount equal to the amount paid to be deposited shall be deemed to be the income of individual of the previous year in which such amount is received by the individual. Accordingly it shall be stated as the income to be chargeable under income tax as the income of the previous year.

How much will be the deduction in section 80dd of Income tax act?

The facility of deduction of Rs 50000 is available in general cases. If the severity of the handicap pf the dependant is high a deduction of Rs 1,00,000 is allowed (as per AY 2009-10).

What all documents are required to accomplish the process of deduction?

It is important for the individual to produce a copy of the certificate issued by the medical board either by Central or the State Government in the prescribed form. A copy of the income tax return of the same year must also be produced.

Who is a dependant?

The term dependant here refers to parents, spouse, children and siblings who are dependant on an individual for maintenance and other basic needs. Any of them must not have claimed for a deduction for their disability. This form of deduction is also applicable to Hindu Undivided Families (HUF).

Tax Benefits under Section 80D

Description	Medical Insurance Premium paid in respect of		Total Deduction under Sec. 80D
	Self, Spouse & Dependent Children	Parents (whether dependent or not)
No-one has attained the age of 60 years	Rs. 15,000	Rs. 15,000	Rs. 30,000
Assessee and his family is less than 60 years & parents are above 60 years of age	Rs. 15,000	Rs. 20,000	Rs. 35,000
Assessee and his parents have attained the age of 60 years and above	Rs. 20,000	Rs. 20,000	Rs. 40,000