Section 80ccf – Investors who have invested in bonds especially for tax saving purpose and infrastructure profit from Section 80CCF of the Income Tax Act, which would be a huge victory for both the government as well as the investors.

A nation’s development is strongly related to its infrastructure, which eventually leads to higher growth and economic advancement, with better infrastructure. A large proportion of money for infrastructure growth in the area is provided by taxpayers, with crores of rupees needed to get the nation up to speed with the competition.

Although it is difficult to generate such exorbitant sums on one’s own, contributions from Indian citizens may go a huge way toward fulfilling this financial obligation In order to encourage additional investors, the government created a unique clause in the Income Tax Act, Section 80CCF, which provides incentives to investors.

The Income Tax Act’s Section 80CCF is a unique section that provides tax advantages to investors in some plans. It was proposed in the 2010 budget and went into effect in 2011 as part of the Income Tax Act 2011.

This section offers some benefits to investors in infrastructure as well as other bonds, such as tax deductions on investments produced allowing an investor to conserve hard-earned cash that would otherwise be taxed.

Must ReadWhat is Section 80CCC?

This section supplements the tax advantages provided by Section 80C by providing extra deductions not included in Section 80C. With the nation’s infrastructure expanding at a rapid pace, it is no brainier for all concerned peoples assisting the government, infrastructure businesses, and people to flourish.

Section 80ccf

Deductions under Section 80CCF 

Section 80CCF of the IT Act includes clauses on all tax deductions in order to lure investors and properly use funds.

The existing limit deduction available to individuals for investments in infrastructure as well as certain tax-saving instruments is ₹20,000/year. This deduction should be combined with all eligible deductions to reduce an investor’s total tax obligation.

The deduction under Section 80CCF is in addition to the deduction accessible in Section 80C, allowing a taxpayer to save even more money by utilising this section wisely.

Must ReadWhat is Section 80CCD?

Eligibility under Section 80CCF

An investor should keep in mind that some fundamental criteria must be met in an attempt for him/her to reap benefits from Section 80CCF provisions. Some of the underlying eligibility requirements for taxpayers are mentioned below.

Indian citizen

Section 80CCF tax deductions are only available to citizens of India. Deductions are also not available to NRIs or nationals.


This section is really only accessible to an individual but not to businesses, enterprises, organisations, associations, and so forth.

Hindu Undivided Family

Only Hindu Undivided Families are liable for Section 80CCF deductions, in addition to individual taxpayers.

Joint Investment

A joint investment could be taken in the names of 2 or more individuals, but only 1 individual, the principal stakeholder, may profit from the tax benefits.

Type of bond

Tax benefits under Section 80CCF could only be obtained by investing in specific tax-saving bonds provided by banks or companies with government approval.

Maximum amount

Section 80CCF allows for a maximum deduction of ₹20,000, and investments in excess of this sum are taxable.


Investments could not be purchased in the name of a child; only adult taxpayers may assert investment deductions.

Individuals who want to seek Section 80CCF advantages must provide the following documentation.

  • Must be valid government-issued ID proof.
  • PAN details PAN details 
  • Bank information (If required)