Under section 80C

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2010 IS Post office RD scheme is Covered under section 80C, Why or why not?

CA Sanat Pyne

CA Sanat Pyne (Expert)
Follow

21 July 2010 5-Yr post office time deposit (POTD) scheme: POTDs are similar to bank fixed deposits. Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) – which currently offers 7.5 per centrate of interest –qualifies for tax saving under section 80C. Effective rate works out to be 7.71% per annum (p.a.) as the rate of interest is compounded quarterly but paid annually. The Interest is entirely taxable.

YOU CAN VISIT THIS BELOW LINK
http://www.taxguru.in/income-tax/investment-covered-under-section-80c-of-income-tax-act-1961.html#ixzz0uJM94gmT

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2010 Dear Mr. Sanat

Thax for the reply, But u specifically talked about the POTD and I am talking about the Post office Recuiring Deposit Scheme as All the RD's are also Term Deposited which is for a predetremined term, Why not 5 Yr RD will be qualify for 80C ?

Upgrade to CAclubindia Pro. Subscribe Now!