23 February 2011
Whether I can claim exemption Under section 80C against Fixed Deposit with nationalised bank for 5 years, If yes what is the maximum exemption I can calim
23 February 2011
Fixed deposit should be under the "Bank Term Deposit Scheme,2006". Maximum eligibility is Rs.1,00,000/- if you don't have any other tax savings scheme like pf, lic, ppf, nsc etc.
24 February 2011
Sir, In some cases if a person deposit Rs.One lakh in FD for 5 years before end of FY, and claim dedn. u/s.80C, subsequently beginning of Next FY he may close FD(prematrue closure with penalty)and end of next FY he will do the same for getting exemption in such circumstances as an accountant what are the ways to ensure that above tatics will not occur
24 February 2011
Eligible fixed deposits must be under "Bank Term Deposit Scheme,2006". Such deposits can't be prematurely en cashed vide rule 11(2) of the said scheme which is reproduced below.
11(2) No term deposit shall be encashed before the expiry of five years from the date of its receipt.
If any body does so ,as you suggested, the said deposit is out side the scheme referred above, meaning thereby the initial deposit itself is outside the eligibility for deduction u/s 80C of the I.T. Act,1961.
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