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Tax planning

CA rahul (BCOM(H) ACA) (725 Points)

04 July 2011

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

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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.

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CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 04 July 2011

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

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 04 July 2011

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.

CA Nikhilesh Singla (CA) (83 Points)
Replied 04 July 2011

Ys u can avail deduction under sec 80C..

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 04 July 2011

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"

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RONAK DARJI (CA FINAL) (382 Points)
Replied 04 July 2011

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.

CA. Roopali Kadam (Jobs on assignment basis.) (1459 Points)
Replied 04 July 2011

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"