IDFC demands hike in income tax deduction limit u/s. 80CCF for infrastructure bonds

Infrastructure Development Finance Company (IDFC) today demanded that the Government raise the income tax-saving cap of Rs 20,000 for more retail participation in infrastructure funding.

“From an inflation perspective, we have been telling the Government that this (infra) is one sector which needs money, so raise the cap under 80CCF of IT Act (tax exemption) from Rs 20,000 to Rs 1 lakh,” IDFC Deputy Head ( Fixed Income and Treasury) Prawin Devchell told reporters here.

At present, subscription to long-term infrastructure bonds by an individual or Hindu Undivided Family (HUF) not exceeding Rs 20,000 in a fiscal year is entitled for deduction in computation of taxable income.