Smart things to know about infrastructure bonds
The Income Tax Act allows individuals an additional deduction from their total income by investing in infrastructure bonds specified under Section 80CCF.
Updated:
1) The Income Tax Act allows individuals an additional deduction from their total income by investing in infrastructure bonds specified under Section 80CCF.
2) Investors need to provide their PAN details to be able to invest in these bonds. Only individuals (excluding minors and NRIs) and HUFs can invest in these.
3) The upper limit for investment in these bonds to claim tax deduction is `20,000. Investors can choose to invest more but cannot claim the deduction.
4) Investors can choose to either get the interest periodically or cumulatively on redemption. The interest earned is taxable, though no tax is deducted at source.
5) The infrastructure bonds have a lock-in period of five years and are listed on the stock exchanges, where they can be traded after the lock-in period is over.
6) The bonds can be held in the physical or dematerialised form. In the case of the former, you have to give proof of address through one of the specified documents.
Content courtesy: Centre for Investment Education and Learning ( CIEL)
2) Investors need to provide their PAN details to be able to invest in these bonds. Only individuals (excluding minors and NRIs) and HUFs can invest in these.
3) The upper limit for investment in these bonds to claim tax deduction is `20,000. Investors can choose to invest more but cannot claim the deduction.
4) Investors can choose to either get the interest periodically or cumulatively on redemption. The interest earned is taxable, though no tax is deducted at source.
5) The infrastructure bonds have a lock-in period of five years and are listed on the stock exchanges, where they can be traded after the lock-in period is over.
6) The bonds can be held in the physical or dematerialised form. In the case of the former, you have to give proof of address through one of the specified documents.
ADVERTISEMENT
Content courtesy: Centre for Investment Education and Learning ( CIEL)
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
