Deduction u\s 80C

This query is : Resolved

CA.Sachin Bajaj (Querist)
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25 June 2008 Sir will the amount of dividend reinvested in mutual funds, say SBI TAXGAIN Div. reinvested plan, qualify for deduction u\s 80C?

Further will the PPF interest be allowed u\s 80C on the same footings?

The above doubt is created as there is no requirement of depositing the amount out of the taxable income for claiming deduction u\s 80C.

Rushikesh

Rushikesh (Expert)
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26 June 2008 Hi Sachin,
The dividend income had been received should have been income which is now reinvested and new units purchased at teh existing NAv. Therefore, in my opinion this very well comes under 80C.
However, the PPF interest is not reinvesting , hence is treated as income when received

Rushikesh

Rushikesh (Expert)
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26 June 2008 Mor comments invited if I am wrong...

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