Get tax benefits on interest earned on 5-year deposits
The provision of Section 80C of IT Act, 1961 whereby a deduction of up to Rs. 150,000 is allowed while computing total income of an individual or HUF in respect of the life insurance premium, contribution to Provident Fund etc. has been amended to include Fixed Deposits with a scheduled bank, for a period of not less than five years. Accordingly, an individual or HUF shall now be entitled to deduction of up to Rs. 1,50,000 on fixed deposits for the period of five years or more. This exemption shall be part of the Rs. 1,50,000 exemption presently available in respect to life insurance premium, contribution to PF etc.