Invest in Infra-structure Bonds – 80CCF – Save Taxes

Deduction in respect of subscription to long term infrastructure bonds under Section 80CCF is applicable for the assessment year 2011-12 and 2012-13. Under Section 80CCF, an individual or a Hindu undivided Family (HUF) can claim a deduction of the whole of the amount paid or deposited (upto a maximum of Rs. 20,000) during the previous year as subscription to notified long-term infrastructure bonds. This deduction is over and above the existing overall limit of deduction on savings upto Rs. 100,000 under section 80C, 80CCC and 80CCD of the Income Tax Act, 1961, i.e., Section 80CCF allows you to invest an additional Rs. 20,000 in infrastructure bonds, and have that reduced from your taxable income in addition to the Rs. 100,000 deduction you get from the other instruments. Bonds issued by Industrial Finance Corporation of India, Life Insurance Corporation of India, Infrastructure Development Finance Company and other RBI classified infrastructure finance companies are eligible for deduction u/s 80CCF of the Income Tax Act, 1961. The tenure of the Bonds shall be a minimum of ten years with a lock-in period of five years for an investor. It will be mandatory for the subscriber to furnish permanent account number to the issuer for investment in the bonds. Proper Tax Planning plays significant role in lowering over all tax expenditure. We at have the expertise in handling complicated individual taxation issues. Do contact us immediately, if you have any tax issues or simply want to save taxes.

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