Deduction under section 80CCF of the Income Tax Act is available on investing amount in to ‘long term infrastructure bonds’. The present article explains the provisions of section 80CCF.
Deduction under section 80CCF is available to the following categories of persons –
Deduction under section 80CCF of the Income Tax Act is available to an individual and a HUF who has invested an Amount up to Rs. 20,000, paid or deposited, during the previous years relevant to assessment year 2011-12 or 2012-13, as subscription to notified long-term infrastructure bonds.
In order to claim deduction under section 80CCF, one needs to invest in the Government approved ‘long term infrastructure bonds’.
Infrastructure bonds issued by the corporations like Industrial Financial Corporation of India; Life Insurance Corporation; Integrated Infrastructure Finance Company; non-banking financial institution are some of the bonds approved by the Government.
The maximum amount of deduction allowable under section 80CCF cannot exceed INR 20,000.
It is important to go through the below mentioned points before opting to invested in the ‘long term infrastructure bond’ for claiming deduction under section 80CCF –
1. What is Section 80CCF?
Section 80CCF is deduction available to an individual and a Hindu Undivided Family (HUF) on the amount paid / deposited to ‘long term infrastructure bonds’ which are approved / notified by the Government.
2. How can I buy Section 80CCF infrastructure bonds?
The investors having a demat account can buy the infrastructure bonds by applying online.
3. What is long term infrastructure bonds 80CCF?
Infrastructure bonds issued by the Government approved companies are termed as ‘long term infrastructure bonds’ investing into which qualifies as a deduction under section 80CCF of the Income Tax Act.
4. Is Section 80CCF part of Section 80C?
Section 80CCF is one of the sub-section of section 80C of the Income Tax Act. Section 80C contains a long list of deduction available to the assessee under income tax.
(Article is republished with amendments considering the feedback received from our readers.)