Section 80 CCF

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Anuraag Sharma (Querist)

19 October 2010 Recently IDFC has made its public offering for its Infrastructure Bonds elibile for deduction u/s 80CCF for which the investor is compulsorily required to own a Demat account.

As The Infra Bonds u/s80CCF can also be purchased in the name of Joint Holders(max 3 Joint Holders) whether-

1. The deduction u/s80CCF will be available to all the Joint Holders(max 3) in their individual capacity?

2. If Yes, whether the deduction u/s80CCF will be available to all the Joint Holders(max 3) for the amount invested or Rs. 20,000 individually, or is there any other manner of such a calculation(in case of Joint Holdings)?

3. If Any of the Joint Holder does not own any Demat Account (But the First Holder owns the same), can the deduction still be claimed by such Joint Holder not owning the Demat Account?

4. Whether such investment can be made by the Assessee in the name of his spouse/son/daughter?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)

19 October 2010 Essential rules governing deduction u/s 80 says " where an associatioon of person or body of individuals is entitled for deduction , a member thereof cannot calim the same deduction in his individual assessment.

Sc 80CF is allowable to Individual or HUF. In case of joint holders , it will be applicable to any one.

There is nothing related to havig a demat account for deduction. So any joint holder can calim the deduction.

No ,it cannot be invested in the name of others.

Prachi Parekh

Prachi Parekh (Expert)

20 October 2010 Just like to add, Demat account is not mandatory to subscribe to these bonds.

In that case, you would have to submit valid identity and address proofs.

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