All individual are asking about benefits of the Budget 2012 but no body caring about losses . Nothing has been mentioned about deduction of 80CCF .

As per present rule 80CCF is allowed for FY 2011-12,as the same has not been enhanced in Finance Bill 2012 presented today o there will no deduction u/ s 80CCF from next year Financial Year 2012-13.

Direct tax code also does not have deduction for 80CCF,the same has been proposed to be adopted for coming year also.

After deletion of this clause there will be 6180 loss of tax for 30% slab and 4120 for 20 % slab and 2060% loss for 10% slab .

In Finance Bill 2011 this deduction was extended fro Financial year 2011-12 only by clause number 9

  • In section 80CCF of the Income Tax act , after the words and figure and letter"previous year relevant to assessment year beginning on the "1st day of the april 2011"the words ,figure and letter "or to the assessment year begining on the 1st day of the April ,2012 shall be inserted with effect from the Ist day of April 2012."

As the date has not been extended to 01.04.2013 in finance bill 2012 so this deduction will not be applicable from Financial year 2012-13 assessment year 13-14

Que: I Still have a confusion ,Finance minister in speech said that bonds limited is to be doubled for companies .Then how the companies will sell bonds to the us if there is no deduction

Ans :The FM has proposed to raise Rs 60,000 crore in 2012-13 for financing infrastructure projects. These  bonds are  taxfree infra bonds that the FM has announced. While these will not qualify for deductions, they will fetch tax-free returns of 8.2-8.3% per annum.Means Interest earned  from these bonds is exempted but these are not available for deduction (like in past u/s 80CCF)

Que: I have read whole finance Bill ,but there is no such amendment regarding deletion of 80CCF.From where you got this point.

Ans:You are correct , there is no clause in finance Bill 2012 regarding 80CCF .In fact 80CCF originally proposed in Finance Bill 2010 and  extended by only one year in Finance Bill 2011.As there is no clause for extension in Finance Bill 2012 so this deduction is not available for Financial year 2012-13.