Amendment of section 80C

Section 16 of the Finance Act, 2008 deals with amendment of section 80C. Amendment of section 80C. 16. In section 80C of the Income-tax Act,— (a ) in sub-section (2), after clause (xxii), the following clauses shall be inserted, namely:— "(xxiii) in an account under the Senior Citizens Savings Scheme Rules, 2004;

Amendment of section 80C.

16. In section 80C of the Income-tax Act,—

(a ) in sub-section (2), after clause (xxii), the following clauses shall be inserted, namely:—

"(xxiii) in an account under the Senior Citizens Savings Scheme Rules, 2004;

(xxiv) as five year time deposit in an account under the Post Office Time Deposit Rules, 1981.";

(b ) after sub-section (6), the following sub-section shall be inserted, namely:—

"(6A) If any amount, including interest accrued thereon, is withdrawn by the assessee from his account referred to in clause (xxiii) or clause (xxiv) of sub-section (2), before the expiry of the period of five years from the date of its deposit, the amount so withdrawn shall be deemed to be the income of the assessee of the previous year in which the amount is withdrawn and shall be liable to tax in the assessment year relevant to such previous year:

Provided that the amount liable to tax shall not include the following amounts, namely:—

(i) any amount of interest, relating to deposits referred to in clause (xxiii) or clause (xxiv) of sub-section (2), which has been included in the total income of the assessee of the previous year or years preceding such previous year; and

(ii) any amount received by the nominee or legal heir of the assessee, on the death of such assessee, other than interest, if any, accrued thereon, which was not included in the total income of the assessee for the previous year or years preceding such previous year.".

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Section 16, The Finance Act, 2008.