Income tax reg

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2016 Could you please clarify the folowing doubt

i.e. Mr.Ram had invested Rs.5 Lakh in FD in 2010 for 5 Yrs Term.Subsquently he had exended the same FD for a Period of Further 3 Yrs.

Now can he claim the Exemption U/s 80C for A Y 2016-17?
Pls reply based on the folowing situations.

a) If he reinvest along with the Interest from 2010-2015
b) If invest only Rs.5 Lakh

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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28 July 2016 Tax Saving FD will be having a tenure of 5 years. So, it is irrelevant if he reinvests or not. He must invest or reinvest it for 5 years and the FD receipt should clearly mention that it is a 'tax saver deposit'.
If he reinvests the entire amount, the he will get credit of what he invested.
One more thing, you need to check whether tax has been paid for interst on the original tax saver deposit he deposited earlier.

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