Sec 80CCF of Income Tax Act, 1961: Deduction in respect of subscription to long-term infrastructure

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Deduction under section 80CCF of the Income Tax Act is available to an individual and a HUF who has invested an Amount up to Rs. 20,000, paid or deposited, during the previous years relevant to assessment year 2011-12 or 2012-13, as subscription to notified long-term infrastructure bonds.

Eligible Investment for Deduction under section 80CCF: In order to claim deduction under section 80CCF, one needs to invest in the Government approved ‘long term infrastructure bonds’.

Infrastructure bonds issued by the corporations like Industrial Financial Corporation of India; Life Insurance Corporation; Integrated Infrastructure Finance Company; non-banking financial institutions are some of the bonds approved by the Government.

Specific conditions for claiming deductions under section 80CCF:

• Deduction under section 80CCFis available only to the resident Indian. Meaning thereby that deduction under section 80CCF is not available to Non-resident Indian.

• Deduction under section 80CCF is available only to the individuals and HUFs. Meaning thereby that deduction under section 80CCF is not available to other categories of assessees like company, partnership firm, AOP etc.

• In case of Hindu Undivided Family (HUF), deduction under section 80CCFis available only to one member of the family.

• In case of joint investment (i.e. investment held in the name of two or more persons) is allowed as a deduction under section 80CCF. However, only one person i.e. the main stakeholder/ the first applicant is allowed to take the tax benefits (i.e. claim deduction under section 80CCF).

• Deduction is available only for A.Y. 2011-12 and 2012-13.

The maximum amount of deduction allowable under section 80CCF is Rs. 20,000.