Section 80 ccf

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This query is : Resolved

Santanu Ray (Querist)

19 March 2012 The Budget 2012 did not make any mention on whether the Infrastructure Bonds u/s 80CCF are continued for the next fiscal.

Is the section and resultant benefit to investors for additional Rs.20000/- investment over and above the Rs.1 lac u/s 80C continuing for the next Fiscal?

Regards,
Santanu

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

19 March 2012 No it will not continue. Section 80CCF has been discontinued. It was till Fy 2011-12 only.

But really a disappointing move by Govt as this was an endeavor for increase in capital expenditure by way of savings.

Santanu Ray

Santanu Ray (Querist)

19 March 2012 Thanks a lot for your prompt reply. I agree with you that he move is disappointing as the acceptance for the product was just catching up among the tax paying public. Also since Infrastructure is such a important area and requires such huge funding the facility should have been extended with enhanced limit. That way much of Indian Infrastructure would be funded by Indian people.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

19 March 2012 Yes that was the concept behind its introduction that capital expenditure required be funded by the peoples of India.

For our economic growth we need more and more capital expenditure. So its always better to fund it our self rather than borrowing from others and therefore it is really a bad move to remove this 80CCF deduction. Not only for us but for the nation as a whole.

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