05 October 2010
An assessee has deposited in a nationalised bank under tax saving scheme u/s 80c of i.t.act for a period of 5 years.she has nominated his son as a nominee.Is it possible to withdraw the amount in case of her death by his son, the so called nominee.
Is the amount withdrawn is taxable and tobe shown in the year of withdrawal.
05 October 2010
(1) In the event of the death of the holder of a term deposit in respect of which a nomination is in force, the nominee or nominees shall be entitled at any time before or after the maturity of the term deposit to encash the term deposit.
(2) For the purpose of sub-paragraph (1), the surviving nominee or nominees shall make an application to the branch manager of the bank, supported by proof of death of the holder and of deceased nominee or nominees, if any.
(3) If there are more nominees than one, all the nominees shall give a joint discharge of the receipt at the time of receiving the payment.
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