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Recurring deposit in post office

Nupur Sharma (CA) (426 Points)

12 November 2014

Hi All,

There is quite a lot of ambiguity on this topic, hence I am posting a query for a final opinion on this. Is recurring deposit in post office allowed as a deduction under section 80 C? Or only a time deposit (fixed deposit) for a period of 5 years is allowed as a deduction?

Thanks in advance

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5 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 12 November 2014

Originally posted by : Nupur Sharma
	Hi All, There is quite a lot of ambiguity on this topic, hence I am posting a query for a final opinion on this. Is recurring deposit in post office allowed as a deduction under section 80 C? Or only a time deposit (fixed deposit) for a period of 5 years is allowed as a deduction? Thanks in advance

Only 5 year fixed deposit in a post office is allowed as deduction u/s 80C.
.
clause (xxiv) of sub-section (2) of section 80C specifies that, "as five year time deposit in an account under the Post Office Time Deposit Rules, 1981."
.
Whereas recurring deposit in a post office is governed by the Post Office Recurring Deposit Rules, 1981 and it has not been included in the aforesaid clause.