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Fixed deposit Limit

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Naveen Kumar

629 Points Posted on 13 May 2021

Dear Sir,

What is the Basic limit in a financial year for Fixed deposit account of an individual, above which the IT Department may issue a notice to the individual? earlier i think it was 10 Lac's Suppose Last financial year 2020-21 Mr. A made one fD for Rs.525000/- same renew in April 2021 include interest. in April 2021 Last week Mr.A made one fD for Rs.112000/- and again Mr. A make one more FD in 1st week of May 2021 Rs.166000/- Can he face any issues
Kindly someone elaborate. Thanks in advance

Replies (5)

Quick Summary

This discussion explores the limit for fixed deposits (FDs) in a financial year that might attract the attention of the IT Department. While there isn't a strict limit on the total amount you can deposit, the key factor is the interest earned. If your annual interest from FDs exceeds £40,000, Tax Deducted at Source (TDS) will be applicable. It's also crucial to maintain proper documentation for the source of funds used for your FDs to address any inquiries from the tax department.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 13 May 2021

No There is no fixed limit for FD opening in bank. you can make FD as per your requirement but in case if interest is greater than 40000 rupees then TDS will be applicable.

No problem in the given case