It is often a practice to start deciding on our investments for tax deductions at the time when investment declarations have to be submitted or at the fag end of the financial year. Our investments generally follow a similar pattern of deductions available to us. So, if tax deduction limit for an investment increases, we try to increase our investments in that scheme. For example, 80 CCF infra bonds have created quite a ripple in the market by giving extra tax benefits over and above the `1,00,000 deductions and there is a mad rush of people wanting to invest the additional amount.
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