Deduction u/s 80c
prithwish sengupta
(Querist) 15 September 2011
This query is : Resolved
is investment in any term deposit/ fixed deposit with any nationalised bank with a period of more than 5 years eligible for deduction u/s 80c?
or only specified fixed deposit or term deposit declared for exemption u/s 80c by nationalised banks are eligible for exemption u/s 80c??
Shailesh Kr. Shah
(Expert) 15 September 2011
Mr.Prithwish Sengupta
You have to say Bank that make fixed deposit for 80C purpose. Bank have Separate category for Term Deposit/Fixed Deposit to avail benefit u/s 80C. Moreover, you can not avail loan facility against on said Term Deposit/Fixed Deposit.
prabhakar singh
(Expert) 15 September 2011
Expert : Shailesh Kr. Shah has rightly opined.
While one can break a fixed deposit of any length of time a deposit made to avail benefit can not be pre en cashed before locking period that is why they are dealt separately by banks.
soumitra basu
(Expert) 15 September 2011
There is separate scheme for tax savings fixed deposit. You have to invest in such for the purpose of getting deduction
Sadashiv Rupchand Gaikwad
(Expert) 17 September 2011
For this purpose the notified bationalised passed, approved the scheme as a regulation from Reserve Bank of India.It is special Receipts.On the TOP of FDR the scheme and PAN is to be written.In the data of AIR there is separate reporting through value transactions in text data to ITD. Interest income on this Term Deposit is not tax free.Interest is taxable on accrual basis.Accrued interest is not exemption u/s 80C as like NSC reinvested interest.Loan are not granted on these Receipts.It is transferable like NSC or PPF to another Branches.
