INDIA: Tax Rebate On Savings in Post Office, Senior Citizen Schemes

NEW DELHI (The Economic Times), December 28, 2007: The Government of India announced on December 28 that investments made in five-year fixed saving scheme of post office and saving scheme for senior citizens from the current fiscal would be eligible for income tax rebate. "It is clarified that investment made on or after April one this year in Five Year Post Office Time Deposit Account and Senior Citizens Scheme will be eligible for deduction under section 80C of the Income Tax Act," the Finance Ministry said in a press release. Section 80C of the Income-Tax Act provides for a deduction of up to Rs 1 lakh to an individual or a Hindu undivided family (HUF) for calculating income tax liability. The ministry asked officials to take such investments into consideration while determining the tax liability of an employee for 2007-08 and subsequent years. Copyright © 2007 Times Internet Limited.