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FD from Past Saving Balance

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Sandeep Jain

Pivate

706 Points Posted on 24 May 2022

Sir, I am earning since 2011 due to my annual income is basic limit so I have never file itr I am saving from Rs.around Rs 1 Lacs in each year from salary. Salary deposit by company in my salary account which was opened by company in his state. We have transferred some amount from salary account to my other saving account for FDR.In April 2020 I have made fd in for Rs.5 Lacs for 3 years and 1lacs for one year after completed one year fd value included interest credit in my saving account. In April 2021 I have made one more fd in for Rs.2 Lacs for 3 years.In FY 2020-21 my annual income bit increased from basic limit and July 2021 I have filed ITR for Rs.268000 salary + Interest from FD and saving account. So can I make one more fd for Rs.1 lac 50 thousand or note can I face any issues/ notice from IT department for my past saving. I have deposit Rs.2 Lacs in cash in past 11 years.in my saving account

Replies (5)

Quick Summary

This discussion addresses whether an individual can create further Fixed Deposits (FDs) using past savings, even though they haven't consistently filed Income Tax Returns (ITRs) due to income being below the taxable limit. The user has documented savings and a recent ITR filing, and seeks reassurance about potential issues with the Income Tax department regarding past cash deposits and new FD investments. The advice given is that they can proceed with new FDs as they have a clear source of income, though investing in market-linked options is also suggested for better long-term returns.

Vasudevan C P

247 Points Posted on 24 May 2022

Sir, u can definitely open FD with said amount. department mostly will not issue any notice since u have clear source of income.

I suggest rather than parking the savings in FD, invest in market like shares or MF. It's right time to purchase and shares will go up in long term.

Thank you