An investment upto a maximum of Rs.20000 in infrastructure bonds would be deductible from your taxable income. This deduction will be over and above the existing overall limit of tax deduction on savings of upto Rs.1 lakh under section 80C, 80CCC and 80CCD of the Act. The benefit of saving tax through Infrastructure Bonds is available for Individuals and Hindu undivided families. The new section 80CCF, will offer a deduction of Rs.20000 for investments in long term infrastructure bonds. The long term infrastructure bonds will have tenure of 10 years and a minimum lock in period of five years. Bonds issued by Industrial Finance Corporation of India, Infrastructure Development Finance Company and other RBI classified infrastructure finance companies – would qualify for tax benefits under Section 80CCF. An investor needs a PAN number and a demat account number to invest and the bonds cannot be pledged for loans during the lock-in period. The bonds are proposed to be listed on the NSE & BSE and no trading will be permitted during the lock-in period. These bonds offer investors the stability of fixed returns and the safety of capital. Timely and efficient tax planning go long way in lowering your total taxes by employing and taking advantages of in-built provisions of tax exemptions, deductions, concessions, rebates, relief’s, allowances and other benefits granted by the tax laws so that the incidence of tax is reduced. We at Taxmantra.com have the expertise to guide you in lowering your tax outgo and thus enhancing your total take away.  We at Taxmantra.com provide full year support solving all your tax issues, in addition to filing of your return of income with excellent tax planning. Please join us now in pursuit of simplifying individual taxation! Alok Patnia Founder and Director at Taxmantra.com