Infrastructure Bonds U/s 80CCF

Long-term Infrastructure Bonds that let you invest indirectly on a long-term basis in infrastructure projects across the country.
As per section 80CCF of the Income Tax Act, you get a Tax relief upto 6180* on
20,000 investment, Interest upto 8.30% p.a., investing in these bonds.

What are infrastructure bonds?
In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (“Income Tax Act”) to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly.