Saturday, 10 July 2010

Get Additional Tax Exemptions under Section 80CCF

The Following companies are eligible for issuing infra structure bonds under section 80CCF which allows you to earn additional Rs. 20,000 Exemption.

IFCI     (Industrial Finance Corporation of India)

IDFC     (Infrastructure Development Finance Company Limited)

LIC     (Life Insurance Corporation of India)

NBFCs     (a Non-Banking Finance Company which is classified as Infrastructure Finance Co. By R.B.I)

The Allowable savings for tax exemption till the financial year 2009-10 was Rs. 100,000/- But from the financial year 2010 -11 you can avail exemption up to Rs. 120,000/- Savings in Tax Exemption Instruments. But the additional Rs. 20,000/- must be in infrastructure bonds.

The above mentioned companies are eligible for issuing such infrastucture Bonds. These infrastructure bonds are long-term bonds for 10 years with a lock in period of 5 years and the PAN (Permanent Account Number) is mandatory for investing in such bonds.  The investor may be redeem this bonds after 5 years.

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  2. I agree with your Blog and I will be back to check it more in the future so please keep up your work. I love your content & the way that you write. It looks like you’ve been doing this for a while now, how long have you been blogging for?

  3. Great information! I’ve been looking for something like this for a while now. Thanks!

  4. good. do you have any idea as to when LIC is coming with bonds

  5. This was a really great read by the author hope to visit more really soon.

  6. Hello, good blog post for Get Additional Tax Exemptions under Section 80CCF | Investment And Money Matters , do you have RSS feed so I can join for this blog.

  7. VIJAYKUMAR BUDIHAL8 December 2010 at 19:03

    Sir, I want to investment in 80CCF. Please furnish the details of companies/
    financial institutions, in which the amount can be invested.
    Yours Sincerely

  8. Dear Vijyakumar
    LIC, IFCI, IDFC or any other notified NBFC can issue infrastructure bonds under section 80 CCF. This infrastructure bonds will be open in the market for only a few days. Because it is close end funds. after closing the offer no body can purchase it and nobody can redeem it before the lock in period. I am not sure that any bonds under sec 80ccf currently open in the market. YOu can read fresh offers in these pages. Just search the search box in this site and you can read almost all details about sec 8o ccf

  9. please send me the address of the banks where L&T Infra tax saving bonds available in mumbai

  10. [...] income received from mutual funds, long term capital gain on securities etc. are exempted from income tax, but you are liable to report such income through your Income Tax return, even if you are not [...]

  11. [...] with an infrastructure bond (PFC Infrastructure Bond) which is also acceptable as per the section 80CCF with a target of Rs. 5300 crores. The bond is already opened on 24th February, 2011 and the offer [...]

  12. [...] Section 80CCF you can claim up to Rs. 20000 for investment in Infrastructure bonds of approved financial [...]

  13. [...] Section 80CCF you can claim up to Rs. 20000 for investment in Infrastructure bonds of approved financial [...]

  14. [...] 2011. The investor can claim Income Tax Exemption for Rs. 20000 in infrastructure bond under section 80CCF in addition to Rs. 100000 exemption under section 80C.There are 4 options in the infrastructure [...]