Tax saver fd issued in my name

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A user opened a Tax Saver Fixed Deposit (FD) online for their son, intending for him to claim the income tax exemption under Section 80C. However, the FD was issued solely in the user's name, not their son's. While the user is the second joint holder on the savings account, the crucial point for tax exemption is that the son must be the primary account holder of the FD certificate itself. The user has been advised to contact the bank to explore options for changing the primary holder of the FD, as premature withdrawal is not an option for 80C investments.

ARUN GUPTA

ARUN GUPTA (Querist)
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17 January 2023 I have a joint savings ac with my son and i am 2nd joint holder. I made a tax saving fd of Rs150000/ online from mobile application for my son. But the fd is issued in my name. Can my son claim the income tax exemption. Please clarify?

ARUN GUPTA

ARUN GUPTA (Querist)
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17 January 2023 The above tax saving fd was made online in jan2023

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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17 January 2023 If the FD is issued only in your name, he cannot claim any exemption u/s. 80C of the act...

ARUN GUPTA

ARUN GUPTA (Querist)
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17 January 2023 But primary account holder is my son and i am second account holder. How will I adjust the fd issued in my name?

ARUN GUPTA

ARUN GUPTA (Querist)
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17 January 2023 Can the name on fd be changed by bank?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 January 2023 If primary account holder of FD is your son, he can claim the exemption...
If not, check with bank for deletion of your name from the FD...

ARUN GUPTA

ARUN GUPTA (Querist)
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18 January 2023 Yes primary account holder is my son. So my name on the certificate makes my son to claim exemption although my sons name is not mentioned on the certificate

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 January 2023 My dear, I state again that the primary holder in the FD certificate should be your son to claim the exemption... and not the savings account...

CA LAVESH VASYANI

CA LAVESH VASYANI (Expert)
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18 January 2023 The benefit of sec. 80C is available to primary holder of Fd Certificate. The fd receipt once created for claiming exemption under sec. 80C, it can not be premature. However in your case bank might change the primary and secondary holder only. Contact Bank authorities.

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