Hi there,
I understand that Fixed Deposits qualify for Income Tax deduction u/s 80C.
I was wondering if there is any lock-in period for FD to claim deduction.
I mean, can I buy a FD in the month of February 2012 for 1 lakh for THREE months i.e., the maturity will be in the next financial year i.e., April 2012.
This way I can save upto 20% u/s 80C as I come under 20% bracket.
Will the Income Tax officer allow it.
Awaiting for the reply.
yes there is no Lock in period for deposits made it is just that the savings should be made in the f.yr and limit is upto Rs.1 lac
The tenure of Fixed Deposits qualifying for Income Tax deduction u/s 80C is 5 Years and you cannot withdraw the same before due date and if withdrawn it will be added to your income in the F.Y when you withdraw the same.
Any FD for 5 years will not do ask the Bank for FD qualifying for dedeuction u/s 80C.
For Short Term tenure investment loook for ELSS. i.e 3 years
| Originally posted by : Snehal.Mahajan | ||
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The tenure of Fixed Deposits qualifying for Income Tax deduction u/s 80C is 5 Years and you cannot withdraw the same before due date and if withdrawn it will be added to your income in the F.Y when you withdraw the same. Any FD for 5 years will not do ask the Bank for FD qualifying for dedeuction u/s 80C. For Short Term tenure investment loook for ELSS. i.e 3 years |
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Agree!
CAclubindia
