21 March 2010
Section 80C(2)(xiii) takes about deduction of amounts invested in mutual funds. Similarly restrictions are prescribed in section 80 C(5) for non deduction which is silent about MF contributions covered in the section referred above. However, to my understanding, most of the MF's who offers units eligible for chapter V1A deduction has a lock in period of three years. To conclude,as you know, the investor has to obey the MF rules ,if he/she invests in their scheme,so as to obtain chapter V1A deduction.
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