What is Section 80CCF of Income Tax Act?
Section 80CCF offers tax-saving benefits for taxpayers who invest in government-approved infrastructure bonds. The maximum deduction amount that can be claimed under this section is Rs. 20,000 for an assessment year.
Is infrastructure bond interest taxable?
Taxation. As the interest on long-term infrastructure bonds are taxable, the interest earned – annually for the investors opted for annual option and aggregate on maturity for the investors opted for the cumulative option – by the investors will be added to the taxable income of the respective investors.
Is IDFC infrastructure bond taxable?
The interest received in these bonds is not tax free. The investor is liable to pay tax on the interest received. The interest received on these bonds shall be treated as income from other sources and shall form part of the total income of the assessee in that financial year in which it is received.
How are infrastructure bonds taxed?
Taxation of Infrastructure Bonds The interest accrued will be added to the individual’s income before being taxed depending upon the individual’s income tax slab. In case the yearly income is lower than Rs. 2500, no tax will be deducted at source. Since individuals can claim income tax deduction in excess of the Rs.
Is 80CCF still valid?
Only the residents of India can claim tax benefits under Section 80CCF of the Income Tax Act. It is not applicable to NRIs and Foreigners. The deduction is only provided to an individual and not for companies, firms, and organisations.
How can I invest in 80CCF?
Bond type – Tax benefits under Section 80CCF can be availed only through investment in certain tax saving bonds, issued by banks or corporations after gaining permission from the government. Maximum amount – The maximum deduction permitted under Section 80CCF is Rs 20,000 and investments over this amount are taxable.
What is section 193 in income tax?
As per section 193 read with Part II of First Schedule of Finance Act, tax is to be deducted @ 10% (7.5% w.e.f. 14.05. 2020 to 31.03. 2021) from the amount of interest. In case any declaration becomes invalid, the deductor shall deduct the tax @ 20%.
What is long term infrastructure bonds 80CCF?
L Infra Long Term Infrastructure Bond Provision under Section 80CCF of the Income Tax Act, 1961(the ‘Act’) gives an opportunity to save tax to an amount of 6,180 (for those in 30% tax bracket) and 4,120 (for those in 20% tax bracket) by investing. 20,000 in L Infra Long Term Infrastructure Bond.