Section 80CCF is applicable to an Individual or Hindu Undivided Family for his investment in Long Term Infrastructure Bonds. Eligible Amount for deduction under section 80CCF is the amount paid or deposited during the previous year as subscription to notified long term infrastructure bonds subject to a maximum amount of Rs. 20, 000.
Relevant Conditions to get deduction under section 80CCF
1) Long term infrastructure bonds must be notified by the Central Government.
2) For the purpose of this section the definition of person covered includes only the Individual and Hindu Undivided Family & does not include the wife or husband & any child of such individual. That means, the deduction is available to the assessee who has actually made payment & investment in his/her name and in case of a HUF, any member of such Hindu undivided family.
Extent of Deduction under section 80CCF
The maximum deduction limit is Rs. 20,000/-.
This deduction under section 80CCF will be over and above the existing aggregate limit of deduction of Rs. 1, 00,000/- allowable u/s. 80C, 80CCC and 80CCD of the Act. This section 80CCF is applicable for Assessment year 2011-12 and 2012 – 2013.
Note: Deduction under section 80CCF is not available from assessment year 2013 – 2014 onwards
