Hello All
I have FDR for 5 years.I made it when i needed a locker facility.Can I claim it under 80 C of income Tax??
I have not pledged it.Kindly tell!!
kavitha
(studying final)
(830 Points)
Replied 06 January 2013
TermDeposits with a holding period of atleast 5 years with schedule banks can be claimed u/s 80C.
if you withdraw it before the expiry of 5 years, then it will be taxable in the year in which it is withdrawn
Pradip Shaw & Co
(Practice)
(227 Points)
Replied 07 January 2013
Term deposit for five years does not automatical;ly covered under sec 80C, in order to get benefit of 80C on term deposit, FD should be a tax savings FD and you can not premature the same, for your kind information Tax savings FD bearing lower rate of interest in comparision to normal FD.
Pravin Prajapat
(C.A. Final Student)
(136 Points)
Replied 07 January 2013
Agreed with the Pradip sir
CA D.C. Bansal
(Accounts Head)
(283 Points)
Replied 08 January 2013
Deposit in Normal FDR is not eligible for deduction u/s 80C. You will have to deposit the amount in 'Tax Saver Fixed Deposit Scheme' to avail the deduction under the section.
kavitha
(studying final)
(830 Points)
Replied 08 January 2013
Fixed Deposits with specified schedule banks , notified only eligible for deduction 80C.
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