Deduction u/s 80c for h.u f

This query is : Resolved

Prasant Thakur (Querist)
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05 January 2012 assessee being huf wants to know whether he will get deduction u/s 80 c in respect of fixed deposits for five year with scheduled bank under tax saving scheme .please advise

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 January 2012 Yes HUF is eligible for deduction for Investment in 5 Years Tax Saving FD with Scheduled bank u/s 80C.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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05 January 2012 Tax Saving Fixed Deposit u/s 80C:

W.e.f. Asst. Year 2007-08 investment in term deposit for a fix period of 5 years with a scheduled bank qualifies for deduction u/s 80C. Individual/ HUF are eligible for this investment. Following are the key points regarding the tax saving fixed deposit u/s section 80C:

1)It has the lock-in period of 5 years. depositing under this scheme, you will not be able to take the money before five years.
2)The interest rates for this scheme will be vary for each bank.
3)Tax savings fixed deposit is available only through banks. You can not open it with company fixed deposit product.
4)Minimum of 100 is deposited.
Maximum of 100000 is exempted u/s 80c for one financial year.
5)If you are depositing in this scheme, there will not be many other benefits which is allowed for the normal fixed deposit
* No Partial/Premature withdrawal allowed.
* Sweep-in not allowed.
* No Over Draft facility allowed.
6)If you have the joint account, the deductions u/s 80c will be allowed only for the first account holder.
7)The interest income for this fixed deposit is taxable.

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