RD OF POST OFFICE

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SACHIN

SACHIN (Querist)
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17 March 2011 Why Post office 5 Years RD not consider under 80C? actually it’s a long term investment

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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17 March 2011 RD , though is long term investment, but the nature is "Recurring". So the mode of investment in actually a lock-in kind of thing.

In my opinion, this is the reason, why a 5 year post office term deposit is eligible for 80C whereas the same term RD is not considered for 80C.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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17 March 2011 Others may have different view....so keeping this query OPEN..

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Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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17 March 2011 Recurring Deposit is nor considered an allowable deduction u/s 80C of the IT ACT.

Even recurring deposit at bank is also not allowed u/s 80C of the IT ACT