80ccf of the income tax act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 January 2012 Whether the benefit of 20,000 can be available only after Rs. 1,00,000 ?

For example:
if a person has invested Rs. 47,500 in LIC and 20,000 in 80ccf bonds, then whether he can get the deduction/benefit of Rs.67,500 or Rs. 47500 ?

and whether interest income on these bonds will be taxable on yearly basis or at the time of maturity?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 January 2012 Deduction OF Rs 20000/- u/s 80CCF isseparate from deduction u/s 80C.

So even if deduction u/s 80C is below Rs 100000/- you can claim deduction u/s 80CCF.

In the given scenario deduction benefit of Rs 67500/- can be availed.

Finally interest income from these bonds is accountable on receipt basis or if information with regard to interest component is provided then on accrual basis.

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B Ravi Kumar ACMA, MBA, M Com

B Ravi Kumar ACMA, MBA, M Com (Expert)
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27 January 2012 I think under 80CCF a person can get exemption only to the extent of 20% of the invested amount...

TAX benefit in this case Rs.4,000/- under 80CCF.

Total Rs.51,500/-

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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27 January 2012 Beg to disagree with Ravi Kumar Ji...

You will get the deduction of Rs 67500/-
i.e., Rs 47500/- in LIC u/s 80C and Rs 20000/- for Infra Bonds u/s 80CCF.

80CCF. In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, the whole of the amount, to the extent such amount does not exceed twenty thousand rupees, paid or deposited, during the previous year relevant to the assessment year beginning on the 1st day of April, 2011, as subscription to long-term infrastructure bonds as may, for the purposes of this section, be notified by the Central Government.

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B Ravi Kumar ACMA, MBA, M Com

B Ravi Kumar ACMA, MBA, M Com (Expert)
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27 January 2012 I agree with Mr Sanjay..

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