Ramachandran (Senior Executive ) (106 Points)
11 November 2016Hi Everyone,
I am planning to deposit some of my money in 5 years Term Deposit for some tax benefit. I know that I have to pay tax on the interest I get from this deposit. But my doubt is how am I suppose to adjust the investment this in the income tax for tax benefit ?
Please help me!!!
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160721 Points)
Replied 11 November 2016
It should be specifically Tax saving fixed deposit, exempted under section 80C
Ramachandran
(Senior Executive )
(106 Points)
Replied 12 November 2016
Yes Sir, I know that. But my doubt is how can I take the deduction ?
Should I divide the amount by 5 and take each year the amount like deferred revenue. Or is there some other way to avail tax deduction under section 80C. I ran through some tax books but still couldn't understand the way to deduct it.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160721 Points)
Replied 12 November 2016
Only in the first year of investment, total amount upto 1.50 L (including other 80C, 80CCC, 80CCD etc.)
Udgam Koomar
(Tax Technologist)
(1949 Points)
Replied 12 November 2016
Only 1.5L can be availabled, under 80C you can mention total amont, software will automatically takemax 1.5L
Ramachandran
(Senior Executive )
(106 Points)
Replied 15 November 2016
Just repeating what you gentlemen said, correct me if I am wrong.
I can avail deduction only on the year the investment is made but I am taxable for the interest I get for al 5 years. Despite the investment, I can take maximum 1.5L.
Thank you for this valuable information. It is very helpful.
CAclubindia
