L&T Infrastructure Finance Company Limited,Long Term Infrastructure Bonds 2011B Series (Tranche 1)

Friends,  L&T Long Term Infrastructure Bonds are available to invest money for Tax Saver Assessee's.  An Assessee can claim extra deduction of Rs. 20,000 under section 80CCF.

Last Date or Issue Close date of Investment in L&T infrastructure Bond is 24th December,2011

Download Application Form of Tax Saving Bonds, KYC Requirements, Prospectus & Shelf Prospectus.

Instructions :- Don't use Photocopies of the form.  System generates unique Application No. for each form.  I mean to say, Application No. of the downloaded form is different for every downloaded form.   It is good idea of L&T to serve their forms.  Investor can collect form from internet. 

To download Multiple Forms or With Code or Without Code (Click Here)

Deduction u/s 80 C for Investments of Family Members

Friends, 

            Every person invest money under section 80 C and avail  benefit of  savings.  It is general question that the benefit of investments made in the name of his/her family under section 80C can be availed or not.  At the end of Financial Year, many time assessee find that the  investments u/s 80C have been made in the name of his/her major child or wife or brother  and now assessee has no more money to invest in his/her name.   In this stage he/she wants to take benefit of investments made in the name of his/her family.  Common questions for an assessee are given as under :-

• Eligibility for Payment of LIC premium of major child.
• Deduction u/s 80 C for payment on behalf of my wife/husband.
• Limit of deduction u/s 80C.

An individual can avail the benefit of deduction under section 80C for payment of investments on behalf of his/her family members (individual/Spouse/Children) up to Rs. 1,00,000/- (one lakh only. )

1. ULIP
2. Life Insurance Premimum
3. Public Provident Fund
4. Annuity Plans

ULIP

ULIP should be taken on his own life, life of the spouse or any child.

Important Notes:

• Hindu Undivided Family (HUF) can also avail the deduction u/s 80C for investment on the name of any      member of the family.

Child may be

• Dependent/independent,
• Male/female,
• Minor/major,
• Married/unmarried

Example for life insurance Premium paid for family members

Compute the eligible deduction u/s 80C for payment by a on behalf of his family members as following

1. LIP (Life Insurance Premium) on his own life – Rs. 20000/-
2. LIP on the life of his wife – Rs. 30000/-
3. LIP on the life of his major son (Not Dependent on A) – Rs. 40000/-
4. LIP on the life of his dependent brother – Rs. 5000/-

Amount eligible for deduction u/s 80C will be Rs. 90000 (20000+30000+40000) except LIP on the life of his dependent brother.

Life Insurance Premium

In case of an individual policy should be taken on his own life, of the spouse or any child.

Public Provident Fund (PPF)

An individual can open public provident fund account in his own name or in the name of minor of whom he is the guardian. One can get the deduction u/s 80c, deposit in his own account, or his/her spouse or in the account of his /her children.

• Important Note: Under Public Provident Fund (PPF) the maximum contribution is Rs. 70,000/-

Annuity Plan

Annuity plan should be taken in the name of the individual, his wife/her husband on any child of such individual.

Deduction under section 80C

Friends,

                  It has already declared that the special deduction of Rs. 20,000/- (Twenty thousand only) can also be availed w.e.f.  01.04.2010 through investment in some specified bonds.  Now bonds have been decided  and published in the Gazette of Inida by the Central Board of Direct Taxes under Notification No. 48/2010/F.NO. 149/84/2010-SO (TPL).  Some details regarding bonds are given as under :-

1) Name of  Bond:-  Name of the Bond will be "Long-term Infrastructure Bond. 

2) Who can Issue these Bonds:-

• Industrial Finance Corporation of India
• Life Insurance Corporation of India.
• Infrastructure Development Finance Company Limited. 
• A Non-Banking Finance Company classified as as Infrastructure Finance Company by the REserve Bank of India. 

3) Time Limit for Issuance of Bonds

          These bonds will be issued minimum for the period of ten years with lock in period for five years. 

4) Pan Number is mandatory for the subscriber   

                     It means there are lot of limitations on these bonds.  Before taking action, everyone should read below Notification carefully. 

Deduction under section 80C

Deduction u/s 80C increased from 1 Lakh to 1.20 Lakh

Friends,

In the Budget 2010-11, limit under section 80C has been increased from One Lakh (Rs. 1,00,000.00) to One Lakh Twenty Thousand (Rs. 1,20,000.00). It is also clarified that the increased Rs. 20,000.00 can not be invested in PPF , LIC , GPF etc. It can only be invested in Long Term Infrastructure Bond as notified by the Central Government.

Overall Limit increased under some particular investment .

2. Minimum Alternate Tax has also been increased from 15 per cent to 18 per cent of Book Profits.

3. Central Government Health Scheme will also be eligible for deduction under income tax act inspite of only contrbution to health insurance schemes.

4. Audit Limit of Accounts u/s 44AB has also been increased from 40 Lakh to 60 Lakh for businessman and Rs. 10 Lakh to 15 Lakh for Professional.

5. Central Excise duty on all non-petroleum products enhanced from 8 % to 10%.

Click here to know latest income tax slab rate.

Click here to know difference between current income tax or after budget income tax on your income.