From the Financial Year 2010-11, We can claim Deduction under Sec 80 CCF by investing in long term infrastructure bonds. The deduction in over and above the Rs.100000. So Total deduction can be claimed under sec 80C is 120000.
Features of long term infrastructure bonds are :
- To be issued by Financial institutions/ LIC / Infrastructure companies
- Bond tenure of minimum 10 years
- 5 years lock- in
- Liquidity through redemption / stock market
- Can be pledged /hypothecated for loans
- Bond yield not to exceed yield on Government securities
- Return will be around 8%post Tax
- Bonds issues hitting the market from next month.
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