Business   

Limits for 80C and 80CCF

QUESTION: I have saved upto Rs.95,000 under Sec. 80C and I have invested Rs.25,000 in specified infrastructure bonds under Sec. 80CCF. My auditor says that I am eligible for a tax rebate of Rs.1.15 lakh only, in my case. Should I contribute Rs.5,000 more under Sec. 80C to get the maximum tax rebate. Is there any condition that the deduction under Sec. 80CCF is possible only if the savings under Sec. 80C is Rs.1 lakh. Please clarify.

ANSWER: A further contribution of Rs.5,000 under Sec. 80C will be necessary to get maximum deduction. There is no condition that the deduction under Sec. 80C should be exhausted before resorting to Sec. 80CCF. The limit for 80C and 80CCF are: Rs.1 lakh and Rs.20.000, respectively.

The advice given to the reader accords with law. There are separate ceilings for 80C and 80CCF. The shortfall in one cannot be adjusted by the extra investment in the other.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Global growth may not be sustained
Indian stock markets likely to remain buoyant in 2011
New tab stacking tool from Opera
Need for reforming Central Processing Centre
Limits for 80C and 80CCF
Approval for donations u/s 80G
SIB hikes NRE and FCNR deposit rates
Cashew acreage unlikely to go up
Shift in rubber use pattern
Spurt in prices

Copyright © 2010, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu