Under the existing provisions of section 80CCF of the Income-tax Act, a sum of Rs. 20,000 (over and above the existing limit of Rs. 1 lakh available under section BOCCE for tax savings) is allowed as deduction in computing the total income of an individual or a Hindu undivided family if that sum is paid or deposited during the previous year relevant to the assessment year 2011-12 in long-term infrastructure bonds as notified by the Central Government.
It is proposed to amend section 80CCF to allow deduction on account of investment in notified long-term infrastructure bonds for the year 2011-12 (assessment year 2012-13) also.
This amendment will take effect from 15t April, 2012 and will, accordingly, apply in relation to the assessment year 2012-13.