I am paying 5000 per month recurring deposit, will i get tax exemption
Neljo Davis ACA
(Consultant)
(630 Points)
Replied 19 December 2013
As per Sec 80C any sums paid or deposited in the previous year by the assessee as term deposit for a fixed period of not less than five years with a scheduled bank in Tax Saving FD are eligible for Deduction. Recuring deposits are not eligible for deduction.
Dhruvi N suthar
(Account Executive)
(303 Points)
Replied 19 December 2013
Hello brijesh,
No,you can't get the exemption benefit on recurring deposit.The benefit is only that tds is not deducted on the int income which you earned thorough int on recurring deposites.
However its taxable only if your income exceed above basic exemption limit.
Investment in Fixed deposit is also Taxable
Thanks
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 19 December 2013
recurring deposit are not eligible for deduction
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