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.
Is interest on LT infrastructure bond taxable?
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.
What is deduction u/s 80?
SECTION 80 DEDUCTIONS Section 80 under Income Tax Act, 1961 allows taxpayers to avail tax exemptions and lower their taxable income. Investing in certain activities makes the taxpayer eligible to avail tax deductions of up to Rs 150,000 in a financial year under Section 80 C.
Is IDFC infra bonds taxable?
Earn 8 % interest rate (tax savings effective yield of 9.19% to 17.85%). 5. Tax deduction of Rs. 20,000 u/s 80CCF is over and above section 80C limit of Rs….Save Income Tax – IDFC Infra Bond – Tranche II.
| Series | 1 | 2 |
|---|---|---|
| Frequency of Interest payment | Annual | Cumulative |
| Face Value per Bond | Rs. 5,000 | Rs. 5,000 |
| Buyback Facility | Yes | Yes |
What is the limit for 80cc?
Section 80CCC of the Income Tax Act of 1961 provides deductions of up to Rs. 1.5 lakhs per annum for contributions made by an individual towards specified pension funds that are offered by a life insurance. The deduction is within the limit of section 80C.
What is tax free bonds in India?
What are the commonly found Tax-Free Bonds
| Tax-free Bonds | Tax-saving Bonds |
|---|---|
| Can invest up to Rs 5 lakh | Tax-exemption is only up to an investment of Rs 20,000 per financial year |
| The higher maturity period of 10,15 and 20 years | Has a buyback clause – you can redeem investments after 5 or 7 years |
When was 80CCF removed?
The objective of this section is to encourage investments in infrastructure projects across the country while helping taxpayers reduce the taxes they pay. The section was introduced in the year 2011, but it was discontinued in 2013 – 14.
What does section 80ccf of the Income Tax Act 1961 do?
Chapter VIA (Sections 80A-80U) of Income Tax Act, 1961 deals with provisions related to deductions to be made in computing total income. Section 80CCF of Income Tax Act 1961-2017 provides for Deduction in respect of subscription to long-term infrastructure bonds.
Is there limit on deductions under section 80ccf?
Section 80CCF of IT Act 1961-2020 provides for deduction in respect of subscription to long-term infrastructure bonds. Recently, we have discussed in detail section 80CCE (limit on deductions under sections 80C, 80CCC and 80CCD) of IT Act 1961.
When did Section 80C become effective in the UK?
Income Tax – Section 80C replaced the existing Section 88 with more or less the same investment mix available in Section 88. The new section 80C has become effective w.e.f. 1st April, 2006. Even the section 80CCC on pension scheme contributions was merged with the above 80C.
Why was the 80ccf included in the ITA?
One such section is the 80CCF. It’s a provision of the ITA that is a win-win for both individuals and the nation. The objective of this section is to encourage investments in infrastructure projects across the country while helping taxpayers reduce the taxes they pay.