CBDT Notification about long term infrastructure bonds for exemption of section 80CCF

Central board of direct taxes has issued a notification about long term infrastructure bonds for getting the exemption of 20000 rupees extra in section 80CCF of income tax act. Full notification is as under.

No.402/92/2006-MC (34 of 2010)

Government of India / Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

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PRESS RELEASE

New Delhi dated 9th July 2010

Long-term Infrastructure Bonds

The Central Government have specified bonds to be issued by (i)
Industrial Finance Corporation of India; (ii) Life Insurance Corporation
of India; (iii) Infrastructure Development Finance Company Limited; and
(iv) a Non-Banking Finance Company classified as an infrastructure
finance company by the Reserve Bank of India; as “Long-term
Infrastructure Bond” for the purpose of section 80CCF of the Income Tax
Act, 1961. Investment in these bonds up to rupees twenty thousand will
be eligible for deduction from the total income of the assessee. The
deduction will be in addition to the deduction of rupees one lakh allowed
under sections 80C, 80CCC and 80CCD of the Act.

The tenure of the Bonds shall be a minimum of ten years with a
lock-in period of five years for an investor. It will be mandatory for the
subscriber to furnish permanent account number to the issuer for
investment in the bonds.
[Notification No.48/2010 dated 9th July 2010; F.No.149/84/2010-SO(TPL)]