truly there is no investment in the financial year. Investment made in a past financial year and then switching over made by the employee in the current financial year. Will it qualify? Please think and give your views.
09 March 2012
Yes Mr. Mukherjee. If suppose you have invested in earlier years in Tax Saving Funds and after the completion of Lock in period of 3 years you can withdraw the money and re-invest in the same or another tax saving fund. The same principle is applicable for switching over from non-tax saving fund to Tax Saving Fund.
09 March 2012
Mr. Joshi thanks your thoughtful comments. But i am not free from the doubt the money invested earlier was not a tax saving funds it was simply mutual fund with growth option, now the switching over things happens.
09 March 2012
Dear Mr. Mukherjee, Whether Sec 80 C specifies that the investment should be made out of the current income? I don't think so. It uses words deposited or paid... even in my articles period (long back in 1992) we use to withdra the funds from PPF account and deposit in NSC and like...
80C. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in subsection (2), as does not exceed one lakh rupees.
09 March 2012
Further to the above, please let me know the wordings on the statement of ELSS Fund regarding the deposit.... whether it shows as "Switch over from xxxx Fund" or amount deposited?
09 March 2012
SWITCHING OVER OF PREVIOUS INVESTMENT FOR WHICH YOU HAVE ALREADY MADE CLAIM OF EXEMPTION CAN NOT BE POSSIBLE AGAIN. IT IS NOT NEW INVESTMENT MADE FROM YOUR POCKET. IT IS JUST SWITCHING FROM ONE FUND TO ANOTHER. SO AS PER MY VIEW NOT AT ALL POSSIBLE
11 March 2012
Yes it can be claimed. I confirmed this with CA Subodh Shah sir who is a well know faculty for CA Final DT classes at Pune. you can post your query to DTSTUDENTS group on dtstudents@yahoogroups.co.in for confirmation giving detailed example.
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