Fixed deposit in bank is eligible for tax deduction

Dear sir ,

               i have made a fixed deposit in bank.Please tell me can i take benefit of tax deduction under section  80C.

Replies (3)

 

Yes but FD should be minimum for 5 years to get benefit u/s 80C.

just to add, FD should be with a scheduled bank.

“scheduled bank” means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), or a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank, being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);]

visit your bank and ask for 80C eligible Fixed deposit, they will issue you such FD with clause printed in it, 

such FD is locked for 5 years and can not be pledged or made lien. 

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