Tax savings bond

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Abhishek Roy Choudhury (Querist)

16 May 2017 Dear Sir,
An Assesse who has invested certain amount of money in Tax Savings Bond in a Nationalized bank for A.Y. 2017-18, whether investment in Tax Savings Bond is eligible for deduction u/s. 80C of the IT Act.

Thanks,
Abhishek

Abhishek Roy Choudhury

Abhishek Roy Choudhury (Querist)

27 May 2017 Dear Sir,
Please Reply to my query.

Thanks,
Abhishek.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

26 July 2025 Hi Abhishek,

Yes, investment in **Tax Saving Bonds** issued by certain entities like **National Highways Authority of India (NHAI)**, **Rural Electrification Corporation (REC)**, and some other notified bonds are eligible for deduction under **Section 80C** of the Income Tax Act, **provided they meet the criteria**:

* The bonds should be notified by the government as eligible for 80C.
* The investment has a lock-in period (usually 5 years).
* The investment should be in the specified bonds as per Section 54EC (for capital gains exemption) or Section 80C (for deduction on investments).

If the "Tax Saving Bond" you invested in is one of these government notified bonds, then yes, it is eligible for deduction under **Section 80C** for AY 2017-18.

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**Note:** Not all fixed deposits with banks qualify under 80C; only specific bonds notified under the Income Tax Act are eligible.

If you want, I can help you identify if your specific bond qualifies!

Would you like me to check that for you?

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