Interest on infrastructure bonds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2012 I have invested Rs.20000/- in infrastructure bonds.Is interest on the same is tax free income?

If i want to invest another Rs.40000/- in same Financial year can i invest? Under 80CCF i can claim only Rs.20000/- as investment but is interest on all Rs.60000/- is tax free?

CA Navin Jain

CA Navin Jain (Expert)
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25 January 2012 Deduction u/s 80CCF shall be allowed only Rs. 20000.

And Interest is taxable under the head of Income from other source irrespective of amount of investment under sec 80CCF.