80c deduction on post office rd

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shijo (Querist)
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11 November 2013 Dear Experts,

is post office time deposit and Post Office RD are same?

can we get 80C exemption on Post office RD?

if yes then what is the minimum RD period required ?

is it applicable in F.Y 2013-14 ?

Thanks & Regards
Shijo

CA Chandra Kishore Bajpai

CA Chandra Kishore Bajpai (Expert)
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11 November 2013 RD is different from Time deposit and RD is not eligible for 80C exemption

shijo

shijo (Querist)
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11 November 2013 Thank you Sir,

May i know the difference between RD & Time Deposit.

CA.Shubhneet Kaur

CA.Shubhneet Kaur (Expert)
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11 November 2013 Time deposit account can be opened for 1 year, 2 year,3 year or 5 year But when it is opened for 5 ears it qualifies for 80C deduction . Min. deposit is Rs.200. Premature closure is allowed. Whereas RD can be opened with a nominal amount of Rs.10.No deduction under 80C and premature closure is allowed after 3 years

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shijo

shijo (Querist)
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18 November 2013 Sir Thanks for the replay,

i have one more doubt.
now as per my understanding RD is monthly deposit and it is a continueous process for 5 years. but whereas Time deposit is a lumsum 1 time payment kept for 5 years.
am i right? please clarify.

CA.Shubhneet Kaur

CA.Shubhneet Kaur (Expert)
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18 November 2013 RD can be on monthly, quarterly basis whereas Time deposit is a lumpsum payment kept for the period it is opened eg. 1/2/3/5 years.But it qualifies for 80C deduction only when it is opened for 5 years.

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PARAS CHHAJED

PARAS CHHAJED

(Expert)
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24 September 2021 Paisa Bazar site says that Post Office RD is eligible for Deduction u/s 80C. the link is as follows:
https://www.paisabazaar.com/saving-schemes/top-5-post-office-schemes-under-section-80c-benefits/

However, I could not find any notification to this effect. I shall be obliged for the notification. Kindly share the relevant notification.