NABARD BONDS: INCULUDED IN 80 C
Section 80C (2)(xxii) of the Income-tax Act, 1961 - Deduction in respect of subscription to bonds
(NOTIFICATION NO. 293/2007, DATED 31-12-2007)
In exercise of the powers conferred by clause (xxii) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the NABARD Rural Bonds of National Bank for Agriculture and Rural Development (NABARD) for an amount of rupees five thousand crore for the purposes of the said clause.
2. The notification shall come into effect from the 1st day of April, 2008.
[F.No.142/31/2007-TPL]
EXPLANATORY MEMORANDUM
The Finance Act, 2007 inserted clause (xxii) in sub-section (2) of Section 80C of the Income-tax Act to provide that deposits made in such bonds issued by the National Bank for Agriculture and Rural Development, as the Central Government may, by notification in the official gazette, specify in this behalf, shall be eligible for deduction under the said section.
Accordingly, the NABARD Rural Bonds of National Bank for Agriculture and Rural Development (NABARD) have been notified. The notification will take effect from the 1st April, 2008 and will, accordingly, apply in relation to the assessment year 2008-2009 and subsequent years.
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Courtesy : CA. V.M.V.SUBBA RAO
CAclubindia
CA.Saibaburao Nanduri
Published in Income Tax