U can get deduction for Rs.100000 for investment in LIC/NSC etc...but u cant get deduction for repayment or interest on loan taken to invest in above said investments..if u've taken loan for construction or purchase of house..then u can get deduction u/s 80C for repayment of prinicipal amount of loan and interest on loan u/s 24....
30 May 2008
FIXED DEPOSITS OF 5 YEAR TENURE IN SCHEDULED BANKS ALSO ARE ELIGIBLE FOR 80 C DEDUCTION UPTO RS ONE LAKH P.A.THIS ONE LAKH BASKET OF DEDUCTIONS IS TOO CLUMSY AND INCLUDES NSC,LIC,PF,ELSS,F.D,SENOIR CITIZEN SAVINGS SCHEME,HOUSING LOAN DEDUCTION (PRINCIPAL),TUTION FEES ETC... BUT INTEREST ON LOAN TAKEN TO MAKE THESE INVESTMENTS IS NOT ELIGIBLE FOR DEDUCTION (EXCEPT INTEREST ON HOUSING LOAN). YOU MAY TAKE LOAN AND MAKE ABOVE INVESTMENTS. THERE IS NO BAR. R.V.RAO
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