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FD premature closure

181 views 3 replies

marella

student

45 Points Joined October 2013

If i have booked an FD of 5lacs and I do a premature closure because I need to pay my daughter's fees of 2lacs. Will the 5lacs coming into the account on premature closure of the FD be taxed or only the interest

Replies (3)

Jash All

2 Points Joined July 2018

If any deduction was taken earlier in respect of FD then it will be taxable now and if n't then only interest component will ne taxable.

Himanshu Dhawan

6 Points Joined December 2018

You may contact your bank for premature withdrawal of FD. There will be tax liability on the interest accrued only There are liquid funds available so for tax saving purpose those are better options with higher safety and returns more than a bank FD. you may contact me for more info at himanshu.dhawan @ wisefinserv.com for better planning. We are a SEBI registered advisory firm.

Sagar Patel

Tax and Business Consultant

11616 Points Joined July 2015

Yes, If any deduction was taken earlier in respect of FD ( like under 80C ect. ) then full value including interest will be taxable now.

If there is no Deduction taken earlier, then only interest component will be taxable on withdraw.