I am a salaried individual in a multinational company. I have a habit of investing any extra savings in various funds. As of today, I have invested 1.2 lakhs in Sukanya Samridhi Yojana, 1.4 lakhs in public provident fund, 50K in LIC, 50K in EPF and I pay Around 40K for my child's tution fees.
I know that my investments are way more than that of 1.5 lakhs. Recently, one of my friends told me that investing more than allowed will cause the department to deny interest on any/all of my investments at the time of maturity. And that I will only receive the principal amount after maturity? Please reply ASAP
It is obvious from above that my investment is much more than the eligible amount under section 80c but i am claiming only 1.5 lakhs under 80c. Now, i came to know from my friends that since i am investing more than the permissible amount under section 80c, so income tax department can deny to provide the interest on any/all of my investments at the time of maturity. And my friends even told me that the income tax officials will return me the principal amount only after maturity. Is it so? I tried to ask this question from almost from everybody i could think of that they can answer but nobody seems to be having 100% surety on their responses.
Jan. 08, 2018