Section 80CCE and Section 80CCF: Deduction Limits and Infrastructure Bonds

Updated: 28 September 2026 | Income tax law in India

Sections 80CCE and 80CCF belong to the Income-tax Act, 1961 framework. From 1 April 2026, the Income-tax Act, 2025 governs Tax Year 2026-27 onward, while the repealed 1961 Act continues to apply to earlier tax years and proceedings under the transitional provisions. The current savings deduction corresponding broadly to Section 80C read with Section 80CCE is now contained in Section 123 of the Income-tax Act, 2025.

Current position: Section 123 of the Income-tax Act, 2025 retains an aggregate deduction of up to Rs. 1,50,000 for specified eligible savings and payments. This deduction is not available under the default new tax regime under Section 202. Section 80CCF, by contrast, was a time-limited deduction for notified long-term infrastructure bonds and applied only to the specified assessment years under the 1961 Act.

Which Income Tax Act applies now?

The Income-tax Act, 1961 was repealed with effect from 1 April 2026. The Income-tax Act, 2025 applies to Tax Year 2026-27 and later tax years. However, returns, assessments, appeals and other proceedings relating to periods beginning before 1 April 2026 continue to be governed by the relevant provisions of the 1961 Act, subject to the transitional provisions.

For example, the return for income earned during Financial Year 2025-26 is the return for Assessment Year 2026-27 and continues under the Income-tax Act, 1961. Income for Financial Year 2026-27 is dealt with as Tax Year 2026-27 under the Income-tax Act, 2025.

Section 80CCE under the Income-tax Act, 1961

Section 80CCE imposed the overall ceiling on specified deductions under Chapter VI-A. Under the law applicable to the relevant years, the aggregate deduction under Section 80C, Section 80CCC and Section 80CCD(1) could not exceed Rs. 1,50,000.

In practical terms, eligible investments or payments under Section 80C, qualifying pension or annuity contributions under Section 80CCC, and the taxpayer's eligible contribution under Section 80CCD(1) shared this overall ceiling. A separate deduction under Section 80CCD(1B), subject to its statutory conditions, was outside this combined Rs. 1,50,000 ceiling.

Current corresponding rule: Section 123 of the Income-tax Act, 2025

For Tax Year 2026-27 onward, Section 123 of the Income-tax Act, 2025 provides the current deduction for specified savings and payments. The Income Tax Department states that the basic Rs. 1,50,000 aggregate limit has been retained in substance. Eligible items are reorganised under the new Act, including through Schedule XV.

The deduction under Section 123 is relevant where the taxpayer is entitled to claim it under the applicable tax regime. The Income Tax Department specifically states that Section 123 is not available under the new tax regime in Section 202. Taxpayers should therefore check the regime applicable to them before treating an eligible investment or payment as deductible.

Period	Relevant provision	General position
Tax years before 1 April 2026	Income-tax Act, 1961: Sections 80C, 80CCC, 80CCD(1) read with Section 80CCE	Combined ceiling of Rs. 1,50,000, subject to the applicable provisions and tax regime.
Tax Year 2026-27 onward	Income-tax Act, 2025: Section 123 and Schedule XV	Rs. 1,50,000 aggregate deduction for specified eligible savings and payments; not available under Section 202 new tax regime.

Section 80CCF: deduction for long-term infrastructure bonds

Section 80CCF of the Income-tax Act, 1961 was a specific, time-bound deduction for an individual or Hindu undivided family subscribing to long-term infrastructure bonds notified by the Central Government. The deduction was limited to Rs. 20,000.

Historical provision only: the statutory text limited Section 80CCF to amounts paid or deposited during the previous years relevant to Assessment Year 2011-12 or Assessment Year 2012-13. It is therefore not a deduction for a fresh infrastructure-bond investment made in 2026. The provision remains relevant when examining those historical years or connected proceedings.

The original page correctly preserved the historical Rs. 20,000 limit and the two specified assessment years. That information should be read as historical law, not as a current investment deduction.

Difference between Section 80CCE and Section 80CCF

Point	Section 80CCE	Section 80CCF
Purpose	Overall ceiling for specified deductions under the 1961 Act.	Specific deduction for notified long-term infrastructure bonds.
Amount	Rs. 1,50,000 aggregate ceiling for the covered deductions.	Up to Rs. 20,000.
Present relevance	Relevant to earlier years; the current corresponding savings deduction is Section 123 of the 2025 Act.	Historical, limited to the statutorily specified assessment years.

Related Income Tax deductions

For the earlier Income-tax Act, 1961 framework, see Section 80C, Section 80CCC and Section 80CCD. You can also browse the Income Tax Act 1961 index for provisions applicable to earlier years.

This article explains the statutory framework for general information. The applicable provision depends on the tax year, tax regime, eligibility conditions and transitional rules.