Regarding sec 80c of it act1961

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arpit agarwal (Querist)
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23 December 2011 sir
1.As investment in mutual fund is allowed under sec 80c, then is there any time limit to hold these mutual fund and any restriction about amount of investment.
2.fixed deposit for 5 year allowed but i am not getting the meaning of word scheme framed and notified under central govt.

Aijaz Shaikh

Aijaz Shaikh (Expert)
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23 December 2011 1) There is no time limit to hold the mutual fund, on sale of mutual fund it will taxable as STCG or LTCG as the case may be.

2) Total deduction that can be claimed under 80C is Rs. 100000/- and hence mutual fund investment should be restricted to that amount.

3) Enquire with the bank whether there FD falls u/s 80C.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 December 2011 1) ELSS Investment which qualifies for deduction u/s 80C has a Lock-in-Period of 3 years. Maximum deduction available Rs 1 lac.

2)

Tax Saving Fixed Deposit u/s 80C:

W.e.f. Asst. Year 2007-08 investment in term deposit for a fix period of 5 years with a scheduled bank qualifies for deduction u/s 80C. Following are the key points regarding the tax saving fixed deposit u/s section 80C:

1)It has the lock-in period of 5 years. depositing under this scheme, you will not be able to take the money before five years.
2)The interest rates for this scheme will be vary for each bank.
3)Tax savings fixed deposit is available only through banks. You can not open it with company fixed deposit product.
4)Minimum of 100 is deposited.
Maximum of 100000 is exempted u/s 80c for one financial year.
5)If you are depositing in this scheme, there will not be many other benefits which is allowed for the normal fixed deposit
* No Partial/Premature withdrawal allowed.
* Sweep-in not allowed.
* No Over Draft facility allowed.
6)If you have the joint account, the deductions u/s 80c will be allowed only for the first account holder.
7)The interest income for this fixed deposit is taxable.

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arpit agarwal

arpit agarwal (Querist)
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24 December 2011 Thanks alot for providing reply.

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