Taxation of tax saving infra bonds

Please let me know about the taxation of Tax Saving Infrastructure Bonds such as those issues by L&T, which allowed salaried employees to invest ₹20,000 over and above their 80C investments?
- Sumit Kumar Chaudhuri

The L&T Tax Saving Infrastructure Bond was eligible for a tax deduction of up to ₹20,000 under Section 80CCF. However, the interest income on this type of bonds are not tax-free. The interest income will be taxed as per the income slab applicable to you.

This article was originally published on April 28, 2016.