Additional deduction for individuals in respect of long-term infrastructure bonds under section 80CCF of Income-tax Act 

In tune with the policy thrust of promoting investment in the infrastructure sector, it is proposed to insert a new section 80CCF in the Income-tax Act to provide that subscription during the financial year 2010-11 made to long-term infrastructure bonds (as may be notified by the Central Government), to the extent of Rs. 20,000, shall be allowed as deduction in computing the income of an individual or a Hindu undivided family. 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.

This amendment is proposed to take effect from 1st April, 2011 and will, accordingly, apply in relation to the assessment year 2011-12.

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The Central Government have specified bonds to be issued by (i) Industrial Finance Corporation of India; (ii) Life Insurance Corporation of India; (iii) Infrastructure Development Finance Company Limited; and (iv) a Non-Banking Finance Company classified as an infrastructure finance company by the Reserve Bank of India; as “Long-term Infrastructure Bond” for the purpose of section 80CCF of the Income Tax Act, 1961.

Investment in these bonds up to rupees twenty thousand will be eligible for deduction from the total income of the assessee. The deduction will be in addition to the deduction of rupees one lakh allowed under sections 80C, 80CCC and 80CCD of the Act.

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.

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0 responses to “section 80CCF – Deduction in respect of long-term infrastructure bonds”

  1. maan says:

    I have bought infrastructure bonds worth Rs20,000 in my wife’s name. Can I not get tax benefit for the same. My wife is a house-wife.
    If not, can I get it transfered in my name now?

  2. Amit Surpuriya says:

    For Application of Infrastructure Bonds – Contact – Amit Surpuriya – 9850873688 – Pune

    KSHITIJ FINANCIAL SERVICES
    Mutual Funds | Infrastructure Bonds | 54EC Capital Gain Bonds | Tax Planning | Company Fixed Deposit | Debentures 

  3. Akhilesh Shah says:

    What if I invest Rs.1,20,000 in infra bonds. Will i get exemption U/S 80C and 80CCF both to the extent of Rs.1,20,000???

    If i have already exhausted deduction U/S 80C will i be eligible for additional 20000 u/s 80CCF

  4. Pritesh Bhagat says:

    the Deduction U/s 80CCF is available only if limit U/S80C of lac is Fully Utilised?

    or

    without compliting the benefit U/S 80C I can Take New Bonds And Enjoy the banefits U/S80CCF ?

    • CA Tirumalesh says:

      No, there is no such restriction of fully utilising 1lac limit of 80C before claiming deduction upto Rs.20,000 under 80CCF, it can be claimed even if you don’t have any other savings of 80C. As of now, this exepmtion is available only for the AYs 2011-12 and 2012-13.

  5. abhash says:

    I have bought infrastructure bonds worth Rs20,000 in my wife’s name. Can I not get tax benefit for the same. My wife is a house-wife.
    If not, can I get it transfered in my name now?

  6. navaneethakrishnan says:

    i want to know the list of long term infrastructure bonds, which are eligible for incom tax deduction under 80CCF and also the sources where i can buy.
    thanks, navaneethakrishnan

  7. jitendra kewate says:

    Please advice about long term infrastructure bond for Rs 20000/- for getting rebate under section 80ccf of income tax with list of various company .

  8. Ahmed Shujauddin says:

    The infrastructure long term bonds(10 years) can be purchased in the peiod of Jan 11 to March 11 in order to claim the tax benifit in financial year end 2011 with a locking period of 5 year, however, I feel it is wise to pay 2k to 3k extra than buying these funds as well explain by Ayush Jain above.

    Ahmed Shujauddin

  9. Keshav Upadhyay says:

    Please advice about long term infrastructure bond for Rs 20000/- for getting rebate under section 80ccf of income tax with list of various company .

  10. Suraj says:

    Can i invest in infrastructure bonds now or the date is completed. I not when is the deadline.Please suggest the list of infrastructure bonds for investment for getting additional tax benefit upto Rs.20000 for the year 2010-11.
    Should i invest 20000 continuously for 10 years..
    When can i take back my money.

  11. Suhail says:

    Dear Sir

    Kindly let me know if i invest one lac in LIC, PF and NSC and I Purchase Infra Bonds for RS 20000/- then will i get a total rebate of RS 12000/- if i fall under tax slab of 10%.

  12. Renukaprakash says:

    Please suggest the list of infrastructure bonds for investment for getting additional tax benefit upto Rs.20000 for the year 2010-11

  13. Deepak says:

    Hi Friends,

    This is true that you get an exempt of upto Rs. 20000/- from your gross income u/s 80CCF of Income Tax if you invest in Infra Bonds. You can invest in L&T infra Bonds untill 15 Nov 2010 to get this benefit.

    You can contact on 09930912405 (Mumbai) for any Tax Saving Instruments you need.

  14. Anand says:

    M interested in Investing in these bonds can some one suggest in which bond i shoud invest

  15. Amit Thakur says:

    Is there any infra -bond of L& T? If no when they are going to place?

  16. patil says:

    Is RBI tax relief bonds are qaulify under section 80ccf ?Can some one please clarify ?
    Thanks,
    Patil

  17. Dinesh Kumar says:

    Dear Sir,

    I would like to Know that the list of Long Term Infrastructure Bonds which eligble for tax dedcution for 20000/- in 80CCF

    Best Regards
    Dinesh Kumar

  18. Shailendra Kumar says:

    The union govt. has allowed 4 major finance cos for investment under infrastrucure bond scheme under a new section 80CCF, for 10 years with lock-in period upto 5year. But the Govt. has not sure about the return as to how much investor will get agianst his investment of Rs. 20,000/- after 10 year or during lock-in period.

  19. Ramesh Jain says:

    wanted a copy of the guidelines…can someone say where they are available…I could onoy locate a press release

  20. Vidhayadhar Kudtarkar says:

    long term infrastructur bond name

  21. mathew cherian says:

    The Finance Ministry has not yet finalised on the method of giving the tax exemption of Rs 20,000. It is contemplating two ways of providing the tax exemption:

    1) Investment of Rs 20,000 in notified tax bonds and the interest being made taxable.

    2) Investment of Rs 200,000 (Approx) and the interest earned on the bonds upto Rs 20,000 being exempt.

    A lock in period of 3 years would apply to both the investments.

    The second method of investment will generate more funds for the goverment (10 times!!). We should get a notification regarding this anytime.

  22. Dharmendra says:

    I would like to buy infrastructure bonds to get benefit of section 80-C. Would like to know more about these bonds & also the sources where I can buy from.

    Thanks & waiting to hear.

  23. Abhijit says:

    Union Govt has confirmed and President of India has approved Union Budget that an additional 20,000/- deduction will be provided over & above 1 Lakh.

  24. christie says:

    Dear Sirs,

    I would like to know the list of Long Term Infrastructure Bonds, eligible for income tax deduction of Rs. 20000 introduced in this finance budget., also heard that the intrest earned is taxable and the same can be earned through fixed deposit.

    pls help me by replying urgently.

  25. H.Sagar says:

    My Company Says:
    Govt. has not yet confirmed about investment in infra-bond in addition to above 1 lakh.

    They are considering investment upto 1 lakh only.

    Please confirm.
    Regards
    HSagar

  26. ayush jain says:

    if i am not wrong the interest earned on infra bond is taxable and lets think logically if we dont invest 20000 then the tax deducted will be app 2000 per yr and we get 18000 to invest in equity or if we invest in infra then after 10 yr @8% pa compounded annually you will earn app 40000 which you mite earn on FD. Am not sure how much am correct but Plz reply to this post with further addition as am a novice but somehow arrived with this logic

  27. Rabindra says:

    Dear Sirs,

    I would like to know the list of Long Term Infrastructure Bonds, eligible for income tax deduction of Rs. 20000 introduced in this finance budget

  28. J P jaiswal says:

    By not raising the threshold limit of Rs1.60 lakh for personal income tax, FM has proved beyond doubt that he is pro-rich. He could have easily adjusted it by not giving such great tax benefit to rich section like Rs50000 for taxable income above Rs8 lakh. Will he rectify the anomoly?

  29. sushil says:

    bond name list in 80ccf

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