80C SSC DEDUCTION

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A client claimed an Rs 1,50,000 deduction under Section 80C for an SCSS deposit in AY 19-20. The question is whether they can claim another Rs 1,50,000 deduction in AY 20-21. The expert clarifies that the Rs 1,50,000 deduction under 80C is typically only claimable in the initial year of the deposit. To claim 80C deductions in subsequent years, additional investments of Rs 1.5 lakhs are required annually. Any interest earned on the SCSS deposit is taxable under 'Income from Other Sources', with a potential Rs 50,000 deduction available under Section 80TTB.

AISHWARYA R

AISHWARYA R (Querist)
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27 December 2020 Dear expert,
my client deposited in scss deposit of Rs 10,00,000 in 1.12.18. He claimed 80c deduction for 150000 in AY 19-20. can he claim further deduction of Rs 150000 in AY 20-21 under 80c.

awaiting for your early reply

regards,
aishwarya

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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27 December 2020 Further deduction not allowed only initial year you can claim maximum deduction you have to offer interest is taxable under income from other sourced where 50000/_ deduction under 80TTB