Section 80C(2)(xxii) of the Income-tax Act, 1961 -
Deduction in respect of subscription to bonds
In exercise of the powers conferred by clause
(xxii) of sub-section (2) of section 80C of the Income-tax Act, 1961 (43 of
1961), the Central Government hereby specifies the NABARD Rural Bonds of
National Bank for Agriculture and Rural Development (NABARD) for an amount of
rupees five thousand crore for the purposes of the said clause.
2. The
notification shall come into effect from the 1st day of April, 2008.
[F.No.142/31/2007-TPL]
EXPLANATORY
MEMORANDUM
The Finance Act, 2007 inserted clause (xxii) in
sub-section (2) of Section 80C of the Income-tax Act to provide that deposits
made in such bonds issued by the National Bank for Agriculture and Rural
Development, as the Central Government may, by notification in the official
gazette, specify in this behalf, shall be eligible for deduction under the said
section.
Accordingly, the NABARD Rural Bonds of National
Bank for Agriculture and Rural Development (NABARD) have been notified. The notification will take effect from the
1st April, 2008 and will, accordingly, apply in relation to the assessment year
2008-2009 and subsequent years.