80c deductions

As of now public provident fund is on EEE method.

The rest, like NSC, 5-year FD etc will have ETE method - interest earned is taxable.

Hi

There are three stages to investments:

Investment, Interest Earned & Maturity.

So when we Invest amount PPF is exempted,

Interest earned year on year basis is also exempt.

Maturity Amount Received is alos exempt.

So it is Called EEE  instrument for Investment.

Thanks

Agree with Mihir Ji..

Till now 80C {PPF,LIC} are under EEE method...

Aage ka bharosa nahi

For individuals, the bill has proposed to continue with exempt-exempt-exempt (EEE) method of taxation on investments up to Rs 3 lakh in a fiscal year in provident fund, pension fund and pure life insurance products.

Under EEE, tax will not be levied during all the three stages — when investment is made, interest earned and when the money is withdrawn.

NSC is ETE...