06 February 2010
Whether Investment in Time Deposit in Post Office and Investment in Time Deposit under Senior Citizen scheme is eligible for the purpose of Deduction u/s. 80C ? Where can I find the relevant circular ? Also explain in brief the conditions for eligibility. Thanks.
06 February 2010
Yes the amounts are eleigible for Deduction u/s 80C but the term of deposit must be at least 5 Years. Prior withdrawl will make it taxable in the year of withdrawl.
Section 80C relevant clauses >
[(xxiii) in an account under the Senior Citizens Savings Scheme Rules, 2004;
(xxiv) as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.
CAclubindia
