Section 80CCF

Section 80CCF of the Income Tax Act provides tax benefits for investments in government- notified infrastructure bonds. Introduced to boost investment in infrastructure, these bonds offer an additional tax deduction, thus reducing tax liability and contributing to the nation’s economic growth.

Read more
kapil-sharma
  • 4.8~ Rated
  • 7.7 Crore Registered Consumer
  • 50 Partners Insurance Partners
  • 4.2 Crore Policies Sold

Tax Saving Plans

  • Get Returns That Beat Inflation
  • Zero Capital Gains tax
  • Save upto Rs 46,800In Tax under section 80C^
We are rated~
rating
7.7 Crore
Registered Consumer
50
Insurance Partners
4.2 Crore
Policies Sold
Get Instant Tax Receipts
Save Upto ₹46,800 in Taxes Under Section 80C^
+91
Secure
We don’t spam
View Plans
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
Disclaimer: ^Section 80C allows annual deductions of up to ₹1.5 lacs from the taxable income. Section 10(10D) provides tax-free maturity benefits for investments of up to ₹2.5 Lacs/ year, on policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
We are rated~
rating
7.7 Crore
Registered Consumer
50
Insurance Partners
4.2 Crore
Policies Sold

What is Section 80CCF?

Section 80CCF of the Income Tax Act offers a tax benefit for investments in notified infrastructure bonds. This section allows taxpayers to reduce their taxable income by up to ₹20,000 beyond the usual Section 80C limit. It was introduced to encourage investment in infrastructure and support economic growth. Investing in these bonds not only provides tax savings but also helps develop essential public projects.

IMPORTANT NOTE: 

  • This tax benefit is available only with the old tax regime. New tax regime does not provide many of the previously available benefits.

Key Features of Section 80CCF

  • Introduction and Purpose: Section 80CCF was introduced in the 2010 budget and implemented in 2011 to encourage investments in tax-saving infrastructure bonds.

  • Additional Deduction: Offers an extra tax deduction of up to ₹20,000 on investments made in notified infrastructure bonds.

  • Separate from Section 80C: Deduction under Section 80CCF is over and above the ₹1.5 lakh limit set by Section 80C.

  • Investment Options: Applies only to investments in government-specified infrastructure bonds.

  • Eligible Investments: The deduction is available for investments in government-approved infrastructure bonds issued by government-notified financial institutions.

  • Lock-in Period: These bonds have a mandatory lock-in period of 5 years​.

  • Tax Benefits: Reduces taxable income, lowering tax liability.

  • Interest Taxation: Interest earned from these bonds is taxable as per the investor’s income slab.

Save Tax Invest Today Save Tax Invest Today

Eligibility Criteria

  • Who Can Claim: Indian residents (Individuals and Hindu Undivided Families) are eligible. 

  • Joint Investments: Only the primary holder can claim the deduction for a joint investment.

  • Exclusion: 

    • NRIs and other entities like companies or firms cannot claim this benefit.

    • Investments under Section 80CCF cannot be made in the name of minors.

Infrastructure Bonds Overview

Infrastructure bonds are long-term investment options issued by government-approved organizations to raise funds for infrastructure projects. 

Feature Details
Purpose To fund infrastructure projects like roads, ports, and airports.
Issuer Government-backed institutions or private companies, like LIC, IFCI, and government-approved NBFCs.
Tenure Typically 5 to 10 years.
Tax Benefits Section 80CCF offers tax exemption up to ₹20,000 for investments.
Interest Rate Varies between 7% to 8.5% (fixed or floating).
Liquidity Low; early exit usually through lock-in or trading on secondary markets.
Risk Factor Relatively low risk, but depends on the issuer’s credibility.
Investment Amount The minimum investment usually starts from ₹5,000.
Tax on Returns Interest income is taxable as per the investor’s tax slab.
Target Investors Ideal for risk-averse investors seeking stable, long-term returns.

Invest & Save upto ₹46,800 per annum in taxInvest & Save upto ₹46,800 per annum in tax

Example of Tax Savings Under Section 80CCF

Following is an example of Mr. Dinesh, who earns ₹7 lakh annually, to learn about the tax benefits under Section 80CCF:

Particulars Amount
Annual Income ₹7 lakh
(-) Basic Exemption Limit in Old Tax Regime (-) ₹2.5 lakh
(-) Section 80C Deductions (-) ₹1.5 lakh
Taxable Income ₹3 lakh
Investment in Tax-Saving Infrastructure Bonds ₹50,000
(-) Deduction under Section 80CCF (-) 20,000
Net Taxable Income ₹3.30 lakh

Things to Remember

  • Only the primary applicant in joint investments can claim deductions.

  • Interest is not tax-free.

  • Investments exceeding ₹20,000 per year are not eligible for additional tax benefits.

Documents Required to Claim Tax Benefits under Section 80CCF

Following is the list of documents required to claim tax benefits under Section 80CCF:

  • PAN Card: Provide a photocopy of your PAN card for identity verification.

  • Bank Account Details: Present a cancelled cheque or passbook copy for refund purposes.

  • Address Proof: Attach address proof, like an Aadhaar card, voter ID, or utility bill.

Conclusion

Section 80CCF provides tax benefits on investments made in infrastructure bonds. It allows individuals to claim a deduction of up to ₹20,000 for eligible investments. This section encourages investment in infrastructure, contributing to the country's development while helping taxpayers reduce their taxable income.

FAQs

  • What is Section 80CCF deduction?

    Section 80CCF allows a deduction of up to ₹20,000 for investments in government-approved infrastructure bonds. This provision aims to encourage investment in infrastructure while providing taxpayers with tax-saving benefits. It is available to individual taxpayers and Hindu Undivided Families (HUFs) but not for NRIs, companies or firms​.
  • Is interest on Section 80CCF infrastructure bonds taxable?

    Yes, the interest earned on infrastructure bonds under Section 80CCF is taxable. It must be included in your total taxable income and taxed according to your applicable income tax slab​.
  • What is Section 80CCH of income tax?

    Section 80CCH does not exist. It's possible that there is confusion with Section 80C or Section 80CCC. Section 80C allows deductions on investments in various tax savings instruments, while Section 80CCC pertains to deductions for premiums paid for pension plans​.
  • Are Section 80C and Section 80CCC the same?

    No, they are not the same. Section 80C provides deductions for investments in a variety of financial instruments like PPF, NSC, and life insurance premiums, up to ₹1.5 lakh. Section 80CCC, however, specifically relates to deductions for premiums paid towards pension plans​. 

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Income Tax articles

Recent Articles
Popular Articles
PNB NRO Sugam Term Deposit Scheme

11 Sep 2024

The PNB NRO Sugam Term Deposit Scheme offered by Punjab National
Read more
PNB NRE Rupee Sugam Term Deposit Scheme

11 Sep 2024

The PNB NRE Rupee Sugam Term Deposit Scheme is a specialized
Read more
PNB Bulk Fixed Deposit Scheme

11 Sep 2024

The PNB Bulk Fixed Deposit Scheme offers competitive FD interest
Read more
PNB Growth Fixed Deposit Scheme

11 Sep 2024

The PNB Growth Fixed Deposit Scheme is a fixed-term investment
Read more
PNB Floating Rate Fixed Deposit Scheme

11 Sep 2024

The PNB Floating Rate Fixed Deposit Scheme offers interest rates
Read more
Post Office FD Interest Rates
  • 02 Jul 2020
  • 46751
Post office FD interest rate ranges between 6.9% to 7.5% p.a. for tenures of 1 year to 5 years. These rates are
Read more
SBI FD Interest Rates
  • 26 Apr 2017
  • 2611381
SBI FD interest rates 2024 range between 3.50% to 7.10% p.a. for regular citizens and 4.00% to 7.60% p.a. for
Read more
Application for Withdrawal of Fixed Deposit
  • 03 Dec 2021
  • 25617
Fixed Deposits are the safest investment instruments. You invest the amount of your choice as the fixed deposit
Read more
FD Premature Withdrawal Penalty Calculator
  • 14 Jul 2021
  • 23780
FD Premature Withdrawal Penalty Calculator calculates the penalty imposed on the investor for premature
Read more
SBI FD Premature Withdrawal Penalty Calculator
  • 14 Jul 2021
  • 23275
A fixed deposit (FD) is an interest-bearing investment that offers assured returns for a fixed tenure. In this
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL