Act says for term deposit 'Any term deposit for a fixed period of not less than five years with the scheduled bank'.
If i invest in RD for 5 years period , may i avail tax exemption.
Because the act has not mention anywhere as Fixed Deposit. It mentionedonly fixed period. pls suggest.
Just go to bank and ask them that you've to deposit in an FD eligible u/s 80C, as per my info currently it's for 5 years only since govt has not made any other FD eligible for it for the time being. Here is the extract relevant to this.
(a) for a fixed period of not less than five years with a scheduled bank; and
(b) which is in accordance with a scheme framed and notified, by the Central Government, in the Official Gazette for the purposes of this clause
Recurring deposit is recurring in nature, u have to deposit fixed amount on monthly basis and its not a one time fixed deposit. i think banks will not accept if u invest one time in recurring deposit
CAclubindia
