Date: July 12, 2010
Section 80CCF was introduced in Financial Budget 2010. The bonds covered under this section were informed to be specified later. Central government has now issued a press release indicating the list of bonds eligible for 80CCF exemption.
The Central Government has specified bonds to be issued by
- Industrial Finance Corporation of India;
- Life Insurance Corporation of India;
- Infrastructure Development Finance Company Limited; and
- 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 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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