Hi I have the following query:
Mr. X had opened a PPF account in 2000. He used to deposit Rs. 70,000/- regularly in every year. Now in March 2010 he is out of cash and has a tax liability. He withdraws Rs. 70,000/- from the previsouly deposited amounts and reinvested the same on the next day and claimed the deduction u/s 80 C. Whether this claim of Mr. X will be allowed or not?
Please reply with relevant section.
Thanks in advance.