Multiple choice

In respect of infrastructure bonds issued under provisions of Section 80 CCF of the Income Tax Act, what is the maximum amount (Rs. in thousands), up to which these bonds can be covered?

  1. 30

  2. 20

  3. 40

  4. 50

  5. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Section 80 CCF of the Income Tax Act provided for a deduction of up to Rs. 20,000 for investment in specified infrastructure bonds. This was a temporary provision introduced to encourage investment in infrastructure projects. The limit was specifically capped at Rs. 20,000 (20 thousand rupees) as an additional deduction over and above the Section 80C limit.