Urgent-80 C- Fixed Deposit with scheduled banks.

This query is : Resolved

geeta (Querist)
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13 November 2008 Can a fixed deposit of Rs. 1 lakh for 5 years with State Bank of India become eligible for deduction under 80C?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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13 November 2008 Yes, of course. THey would have a scheme and named it as such.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 November 2008 The deposit should be in the BANK TERM DEPOSIT SCHEMR,2006 vide notification No S.O.1220(E) dt 28-7-2006.

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Deepak Agrawal

Deepak Agrawal (Expert)
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13 November 2008 What is impact on tax if we mature te FD before maturity

Deepak Agrawal

Deepak Agrawal (Expert)
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13 November 2008 Reply

Hiral Raja

Hiral Raja (Expert)
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13 November 2008 IF you have purchased a FD under the BANK TERM DEPOSIT SCHEMR,2006 vide notification No S.O.1220(E) dt 28-7-2006 which is eligible for 80C deduction, you cannot pre mature encash the FD. However you can take an OD/loan against the same.