CBDT has increased the bank fixed deposit limit from 1 Lakh ruppes to 1.5 Lakh rupees for the exemption u/s 80C. This is called Bank term deposit scheme. CBDT made an amendment and increased to 1.5 Lakh with a notification no. 63/2014 dated 13 November 2014. Full notification is as under.
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. 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.