Investment in FD-80C
This query is : Resolved
23 February 2011
Whether I can claim exemption Under section 80C against Fixed Deposit with nationalised bank for 5 years, If yes what is the maximum exemption I can calim
Rgds
Rgds
23 February 2011
Fixed deposit should be under the "Bank Term Deposit Scheme,2006". Maximum eligibility is Rs.1,00,000/- if you don't have any other tax savings scheme like pf, lic, ppf, nsc etc.
23 February 2011
As per clause 19 of Section 80C, in notified scheme of scheduled Bank, you can get maximum of Rs.100000/- exemption
24 February 2011
Sir,
In some cases if a person deposit Rs.One lakh in FD for 5 years before end of FY, and claim dedn. u/s.80C, subsequently beginning of Next FY he may close FD(prematrue closure with penalty)and end of next FY he will do the same for getting exemption
in such circumstances as an accountant what are the ways to ensure that above tatics will not occur
In some cases if a person deposit Rs.One lakh in FD for 5 years before end of FY, and claim dedn. u/s.80C, subsequently beginning of Next FY he may close FD(prematrue closure with penalty)and end of next FY he will do the same for getting exemption
in such circumstances as an accountant what are the ways to ensure that above tatics will not occur
24 February 2011
Eligible fixed deposits must be under "Bank Term Deposit Scheme,2006". Such deposits can't be prematurely en cashed vide rule 11(2) of the said scheme which is reproduced below.
11(2) No term deposit shall be encashed before the expiry of five years from the date of its receipt.
If any body does so ,as you suggested, the said deposit is out side the scheme referred above, meaning thereby the initial deposit itself is outside the eligibility for deduction u/s 80C of the I.T. Act,1961.
11(2) No term deposit shall be encashed before the expiry of five years from the date of its receipt.
If any body does so ,as you suggested, the said deposit is out side the scheme referred above, meaning thereby the initial deposit itself is outside the eligibility for deduction u/s 80C of the I.T. Act,1961.
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
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- Experts need help
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Rental income gst and it purpose
- EPF FULL & FINAL RULES IN 2026
- FTS Taxable under 115A
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Gift Received from nonblood relative
- Foreign lottery ticket bought online from India: legality, tax and consequences
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
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
