Hi All,
There is quite a lot of ambiguity on this topic, hence I am posting a query for a final opinion on this. Is recurring deposit in post office allowed as a deduction under section 80 C? Or only a time deposit (fixed deposit) for a period of 5 years is allowed as a deduction?
Thanks in advance
| Originally posted by : Nupur Sharma | ||
 |
Hi All, There is quite a lot of ambiguity on this topic, hence I am posting a query for a final opinion on this. Is recurring deposit in post office allowed as a deduction under section 80 C? Or only a time deposit (fixed deposit) for a period of 5 years is allowed as a deduction? Thanks in advance |
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Only 5 year fixed deposit in a post office is allowed as deduction u/s 80C.
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clause (xxiv) of sub-section (2) of section 80C specifies that, "as five year time deposit in an account under the Post Office Time Deposit Rules, 1981."
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Whereas recurring deposit in a post office is governed by the Post Office Recurring Deposit Rules, 1981 and it has not been included in the aforesaid clause.
yes agreed with deepak..!!!
Fixed deposit or time deposit of 5 year period is allowed as deduction u/s 80C. Recurring deposit not allowed.
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