KKFS

Real Estate and Financial Advisory Services

SAVE MORE ON INCOME TAX NOW Invest in Infrastructure Bonds Save Tax u/s 80 CCF
Upto 1 Lac deduction is available as per Section 80C of the Income Tax Act as is already known to us. This deduction is available on investment in selected instruments like ELSS, ULIPs, Life Insurance, 5 Year FDs in Banks, NSCs, PPF, etc. From FY 2010-2011, Government of India, in order to boost infrastructure development in the country and to mobilize resources for such development has allowed select Infrastructure Financing Companies to raise capital through issue of Infrastructure Bonds. In order to encourage investment in these fixed income securities it has been decided to allow deduction for investments in Infrastructure Bonds for not more than 20000/- Rupees. This means that the Gross Taxable Income decreases by 20000/- and hence the tax on the taxable income. This is over and above the existing Deduction u/s 80C upto 100000/-. This deduction in Infra Bonds is allowed u/s 80CCF of the IT Act. Now let us understand with the following tabulated illustration the impact of investment in Infra Bonds on our tax liability and savings thereof:

From the table above, which in itself is self-explanatory, the annualized yield which we can also call rate of return on investment of 20000/- for an individual tax payer whose salary comes in 30% tax bracket is 15.10% net of tax savings and similarly, as shown for tax brackets of 20% and 10%. Further the returns are fixed and risk free and not linked to stock market movement and hence no market related risk is associated with such investment.

We offer Stock Broking, Wealth Management, Facilitate investments in Infrastructure Bonds, Mutual Funds, IPOs, Insurance, Online Trading, Real Estate Advisory for DLF, IREO, Emaar MGF and Unitech Contact: Karan Kandhari, KK Financial Services, HM 65, First Floor, Phase 4 Mohali-160059. Mobile: +91 9888889555; E-Mail ID: karanpalkandhari@gmail.com