deduction u/s 80 c
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
31 January 2011
To claim deduction u/s 80 c whether investment in ppf is beneficial or investment in tax saving bonds for 5 yr in bank is beneficial.(tax planning wise) also mention rate of interest for ppf investment.
31 January 2011
Current rate of PPF interest is 8 % compounded ,to be credited to the account at the end of every financial year and payable at the time of withdrawal.
Message likes :
1 times
31 January 2011
As per existing tax provisions, Interest earned on investments in PPF is tax free whereas Interest earned on Tax Saving Bank FD for 5 years is subject to tax.
It therefore appears to me that investment in PPF is more advantageous.
The position may be different if you will retire from service within next 5 years and not likely to have taxable income by the time of maturity of Tax Saving Bank FD (in case of cumulative interest option).
Normally a youngster having more than 15 years of left over service only considers PPF option. I suppose you belong to this category, if so, investment in PPF is more advantageous
It therefore appears to me that investment in PPF is more advantageous.
The position may be different if you will retire from service within next 5 years and not likely to have taxable income by the time of maturity of Tax Saving Bank FD (in case of cumulative interest option).
Normally a youngster having more than 15 years of left over service only considers PPF option. I suppose you belong to this category, if so, investment in PPF is more advantageous
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- ITR 1: Details for showing Exempt Income
- ITR selection for salaries and capital gain less than L
- ITR 2 Short Term gain & Long term gain
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Reporting Income under Section 44ADA
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- Tax liability on income of freelancer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
