Investment Upto Rs. 20000/- In Longterm Infrastructure Bonds Allowed As Deduction U/S 80ccf Of Income Tax Act 1961
The Finance Act, 2010 has inserted a new section 80CCF in the Income Tax Act, 1961, which provides that an amount upto the extent of Rs. 20,000/- paid or deposited during the financial years 2010-11 as subscription to long-term infrastructure bonds shall be allowed as deduction in computing the income of an individual or a Hindu Undivided Family. The deduction will be over and above the existing overall limit of Rs. 1,00,000/- available under section 80C, 80CCC and 80CCD of the said Act on savings and other prescribed investments. This amendment takes effect from 1.4.2011 and is applicable for the subscriptions to eligible/notified infrastructure bonds made during the Financial Year2010-11.
Consequent to this amendment, ‘long-term infrastructure bonds’ have been notified vide Department of Revenue, Central Board of Direct Taxes, notification No. 48/2010 [S.O. 1639 (E)] dated 9.7.2010, specifying the details such as the tenure, interest rate, agencies which can issue the bonds, etc.
This information was given by the Minister of State for Finance, Shri Namo NarainMeena in written reply to an Unstarred Question in Rajya Sabha today.