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Section 80CCF of Income Tax Act about Tax Saving Infrastructure Bonds

What Is the Deduction Limit Under Section 80CCF?

What Are the Eligibility Criteria to Avail Tax Benefits Under Section 80CCF?

What Are the Documents Required to Avail Tax Benefits Under Section 80CCF?

How to Calculate Deductions Under Section 80CCF of Income Tax Act?

 

To understand how does income tax deduction under Section 80CCF works, let's take a simple example:

Mr Ashok earns a annual income of ₹ 5,00,000. According to the income tax slab, his taxable income equals ₹ 2,50,000. He invests in schemes to avail tax deduction up to ₹ 1,50,000 as mentioned under Section 80C. Besides, he invests ₹ 40,000 in government-approved bonds and can enjoy a tax deduction of ₹ 20,000 under Section 80CCF. Thus, his total taxable income in a given assessment year stands to -

Particulars

Amount

Annual income

₹ 5,00,000

Deduct: Basic Exemption Limit

- ₹ 2,50,000

Deduct: Deduction under Section 80C

- ₹ 1,50,000

Annual Net taxable income

₹ 1,00,000

Investment in government-backed bonds

₹ 40,000

Deduct: Maximum deduction under section 80ccf (deduct from investment in government-backed bonds)

- ₹ 20,000

Total taxable income of Mr. Ashok in a given assessment year (₹1,00,000 - ₹20,000)

₹ 80,000

Things to Consider While Availing Tax Benefits Under Section 80CCF

FAQs about Section 80CCF of Income Tax Act