Sec 80 ccf exemption in relation to principal amt.

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Tushar Darji (Querist)
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17 December 2011 I invest in Infrastructure bond under sec 80 CCF. I want to know whether principal amt. received after minimum lockin period or on maturity will be taxable or not.I understood the provisions related to max. deduction of Rs. 20,000 on investment and interest amt. being taxable under Income from other sources but what about taxability of the principal amount received as said above.

B Ravi Kumar ACMA, MBA, M Com

B Ravi Kumar ACMA, MBA, M Com (Expert)
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17 December 2011 It is not taxable.

Tushar Darji

Tushar Darji (Querist)
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17 December 2011 Raviji can you please tell me where did you find this.

CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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17 December 2011 Tushar i think it will be taxable.

because sec 10 of IT act 1961 not contained any provisions regarding exemption of income on maturity of bonds.

B Ravi Kumar ACMA, MBA, M Com

B Ravi Kumar ACMA, MBA, M Com (Expert)
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19 December 2011 Originally when you have received that Principal amount, it has been taxed already. Again the same principal amount is not taxable, your principal amount will be protected.

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