Tax planning

5 Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.

Originally posted by : nisha
	5 Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.

agreed                            

Originally posted by : nisha
	5 Yr bank fixed deposits (FDs): Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.

AGREED.

Originally posted by : rahul
	If a person invest in fD for a tenure of 10 yr amount to rs 100000 whether full amount is allowed as deduction in the year of investment

No, unless you have asked the bank to make FD eligible for 80C, it would not entitle for deduction, 

FD under 80C have some restrictions viz, it can not get prematured encashment, does not qualify for loan, does not get added to sweep in / sweep out.

such 80C FD has face marked as" eligible for 80C deduction under income tax act"

Dear Rahul,

                            As per my knowledge, almost all of the nationalised bank provide Fixed Deposit which is deducted u/s 80C,so rs.1,00,000/- as fd is allowed as deduction in the year in which amount is invested.Interest of FD is chargeable u/h IFOS.

Regards,

Ronak Darji.

Originally posted by : U S Sharma
	Originally posted by : rahul If a person invest in fD for a tenure of 10 yr amount to rs 100000 whether full amount is allowed as deduction in the year of investment No, unless you have asked the bank to make FD eligible for 80C, it would not entitle for deduction,  FD under 80C have some restrictions viz, it can not get prematured encashment, does not qualify for loan, does not get added to sweep in / sweep out. such 80C FD has face marked as" eligible for 80C deduction under income tax act"

Agreed

Dear Rahul,

i am also go with roopali answer.

As fer my knowledge goes-

5 Yr bank fixed deposits - Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are only entitled for section 80C deduction.

So deposit for a tenure of 10 year FDs are not eligible for deduction u/s 80C.