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Section 80C

N KRISHNA CHAITANYA (CA Student) (101 Points)

11 January 2011

My Uncle deposited 1,00,000/- in Fixed Deposit scheme for a period of 5 years in a Bank.

Is this entire amount is eligible for deductio u/s.80C or is there any limit for deduction for deposits.

I Want reply urgently.

Thanking U all

Regards

Krishna Chaitanya

A student

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15 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 11 January 2011

Yes entire amount is eligible for deduction u/s 80 c. interest is chargeable to tax.

kishore choudhury (article asst.) (114 Points)
Replied 11 January 2011

Yes,the entire amount is eligible for deduction.as 5years term deposit is covered under ssection 80C.

for more details check the list of investment that can be made in sec.80C.

CA Saba Naaz (Chartered Accountant) (8487 Points)
Replied 11 January 2011

Yes.......its eligible for deduction under sec.80C

2 Like

Viplav (Only Attempts) (82 Points)
Replied 11 January 2011

yes its eligible for deduction but if you Matured FD before due date it is taxable so be aware not to premature

CA MAULIK (C.A) (937 Points)
Replied 11 January 2011

yes entire amt is deductible provided no other 80 C investments have not done......

Manmohan ACA, CS (Chartered Accountant ) (14243 Points)
Replied 11 January 2011

Entire 100000 is exempted, but after that you can not claim any other deduction u/s 80C, 80 CCC and 80 CCD in current assessment year

(Guest)

entire amt. is exempted under 80 c

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 11 January 2011

Originally posted by : N KRISHNA CHAITANYA
	My Uncle deposited Rs.1,00,000/- in Fixed Deposit scheme for a period of 5 years in a Bank. Is this entire amount is eligible for deductio u/s.80C or is there any limit for deduction for deposits. I Want reply urgently. Thanking U all Regards Krishna Chaitanya A student

check the FD receipt, 80C FD has certain clause printed therein, and have some clause for interest,

Pulkesh Mehta (Chartered Accountant) (243 Points)
Replied 11 January 2011

Yes ,entire amt. is deductible from GTI,but be careful that ur uncle will not get premature it before 5 yrs,otherwise Rs. 100000/- will be deemed as Assessee's Income & manmohan is also right that ur uncle will not get any other deduction from Sec 80CCC & 80CCD.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 11 January 2011

Tax Saving Fixed Deposit u/s 80C

Section 80C provides the Fixed Deposit option for the tax exemption. The following are the key points regarding the tax saving fixed deposit u/s section 80C:

It has the lock-in period of 5 years. depositing under this scheme, you will not be able to take the money before five years.
The interest rate for this scheme will be vary for each bank.
Tax savings fixed deposit is available only through banks. You can not open it with company fixed deposit product.
Minimum of Rs.100 is deposited.
Maximum of Rs.100000 is exempted u/s 80c for one financial year.
If you are depositing in this scheme, there will not be many other benefits which is allowed for the normal fixed deposit
- No partial/Premature withdrawal allowed.
- Sweep-in not allowed.
- No Over Draft facility allowed.
If you have the joint account, the deductions u/s 80c will be allowed only for the first account holder.
The interest income for this fixed deposit is taxable.

(Guest)

Originally posted by : Pulkesh Mehta
	Yes ,entire amt. is deductible from GTI,but be careful that ur uncle will not get premature it before 5 yrs,otherwise Rs. 100000/- will be deemed as Assessee's Income & manmohan is also right that ur uncle will not get any other deduction from Sec 80CCC & 80CCD.

truly agreee !!