Get tax deductions under Section 80CCF | Fusion - WeRIndia

Get tax deductions under Section 80CCF

Get tax deductions under Section 80CCF

You can claim a maximum deduction of up to ₹1.5 lakhs under Section 80C of the Income Tax Act. However, you can get additional tax benefits of up to ₹20,000 if you invest in certain bonds and infrastructure.

Do you know that a tax deduction of up to ₹20,000 is allowed under Section 80CCF of the Income Tax Act?

It is a special provision for taxpayers to give tax benefits if they invest in certain schemes like tax saving bonds and infrastructure.

While investors can get tax benefits for investing in infrastructure, the government can obtain funds through these investments. Thus, it is a win-win situation for both of them.


The special provision under Section 80CCF was formulated in 2010 by the government of India, which came into effect in 2011. It aimed to provide certain incentives to people who invest money in infrastructure and tax saving bonds.

Here are some important things to know about Section 80CCF:

  • Individual taxpayers and Hindu Undivided Families (HUFs) are eligible for tax deductions under Section 80CCF. Only Indian residents can claim tax benefits under this section. Neither NRIs nor foreigners are allowed to claim the benefit.
  • The maximum permitted amount for tax deduction under Section 80CCF is ₹20,000. The investment made above the permitted limit is taxable.
  • The investment can be made jointly in the name of two or more people. However, only the primary investor can claim the tax benefit.
  • Similarly, the investment can be made in the name of a minor as well. But, the tax deduction is allowed only for the adult taxpayer.
  • Though the investment is tax exempted, the interest on these bonds is taxable. Besides, these bonds have a lock-in period. The minimum lock-in period for most of the bonds is 5 years. So, you should consider all these things before investing in these bonds.

Image from Pxhere (Free for commercial use / CC0 Public Domain)


Image Reference: https://pxhere.com/en/photo/1103521

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