SECTION 80C

This query is : Resolved

SHEEJITH (Querist)
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08 July 2007 Kindly let me know whether re investment of divident received from Mutual fund is eligible for deduction under section 80C

Vasantha Kumar Reddy

Vasantha Kumar Reddy (Expert)
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09 July 2007 Income(dividend) received from the Mutual fund specified under clause 23D of Section 10 is exempted under section 10(35).

Reinvestment of dividend received from mutual fund is eligible for deduction U/s 80C.

In the view of the above provisions you can avail the deduction u/s 80C

Paras Chhajed

Paras Chhajed (Expert)
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10 July 2007 First of all to qualify for deduction u/s 80 C the investment nust be made out of taxable income not necessarily of the relevant year but it has to be out of taxable income and therefore, in my opinion, the re-investment of dividend which is an exempt income does not qualify for deductio u/s 80 C.

CA Paras Chhajed