Fixed deposit (FD) Limit Increased to Rs. 1,50,000 from Rs.1,00,000 for Claiming Exemption u/s 80C

An Indi­vid­ual & an HUF can Claim deduc­tion under Sec­tion 80C by invest­ing in FD for more than 5 years under the Bank deposit scheme 2006. Eralier the Lim­it of deposit under the scheme was Rs.1,00,000 only. Now with the increase in exemp­tion lim­it under sec­tion 80C lim­it of Bank Term deposit also Increase to Rs.1,50,000.

Noti­fi­ca­tion issued on 13^th Novem­ber 2014 in this regard is as below:

S.O. 2906(E).In exer­cise of the pow­ers con­ferred by clause (xxi) of sub-section (2) of sec­tion 80C of the Income-tax Act, 1961 (43 of 1961), the Cen­tral Gov­ern­ment here­by makes the fol­low­ing amend­ments to the the Bank Term Deposit Scheme, 2006, namely:-

1. (1) This scheme may be called the Bank Term Deposit (Amend­ment) Scheme, 2014.

(2) It shall come into force on the date of its pub­li­ca­tion in the Offi­cial Gazette.

2. 2. In the Bank Term Deposit Scheme, 2006, in para 3, in clause (1), for the words “one lakh rupees” ‚the words “one hun­dred and fifty thou­sand rupees” shall be substituted.

[[Noti­fi­ca­tion No. 63/2014, F.No.142/09/2014-TPL]

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Ear­li­er the Term Deposit scheme was noti­fied on 28–7‑2006 via NOTIFICATION NO. 203/2006, DATED 28–7‑2006 with a lim­it of Term Deposit for claim­ing 80C deduc­tion of Rs.1,00,000.

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The same was again mod­i­fied on 2007 to insert that in the event of the death of the first hold­er of the deposit in a case of a joint hold­er type deposit, the oth­er hold­er of the deposit shall be enti­tled to encash the term deposit before its matu­ri­ty by mak­ing an appli­ca­tion to the branch man­ag­er of the bank, sup­port­ed by proof of death of the first hold­er of the deposit

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