08 July 2009
In the new amendement made in the Income tax that investment made into the fixed deposite into sceduled bank is exempted under section 80C ? is it correct.can some one tell me that the limit of the investment ?
(a) for a fixed period of not less than five years with a scheduled bank; and
(b) which is in accordance with a scheme framed and notified, by the Central Government, in the Official Gazette for the purposes of this clause.
Explanation.For the purposes of this clause, scheduled bank means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), or a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank, being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);]
08 July 2009
Hi, There is special scheme in all the banks to accept the deposit which are eligible for deduction u/s. 80C. The rate of interest in such case is less by 1% as per the prevailing rates prescribed for general deposits. The bank also affix a stamp on such FDR's that these FD are eligible for deduction u/s. 80C. The total limit of investment is Rs. 1 lac.
CAclubindia
