Section 80CCF of ITA, 1961 : Section 80Ccf: Deduction In Respect Of Subscription To Long-Term Infrastructure Bonds

Explanation using Example

Imagine Mrs. Sharma, a software engineer, decides to invest in long-term infrastructure bonds that have been notified by the Central Government for tax-saving purposes. In the financial year 2011-12, she invests Rs. 20,000 in these bonds. When filing her income tax return for the assessment year 2012-13, she can claim a deduction of Rs. 20,000 under Section 80CCF of the Income-tax Act, 1961. This deduction will be subtracted from her total income, reducing her taxable income and consequently her tax liability for that year.