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Fixed deposit personal advise

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Surinder

Assistant

262 Points Posted on 29 March 2021

Sir

Please suggest as someone told to Mr.X if you made Fixed deposit In a bank for Rs.10 Lacs same information bank send to ITR department and you have to face issue.Mr.x has 2 FD.one is 2019-20 and 2nd one is 2020-21 value of both fd is approximately 8.70 Lac including interest both fd will be renewal in 3rd week of May.so if Mr.x open one more fd in next financial year 2021-22 Rs.300000 total FD value 11.70 Lac does any issues from IT department
please advise

Replies (2)

Quick Summary

This discussion addresses concerns about Fixed Deposits (FDs) and their reporting to the Income Tax (IT) department. It clarifies that having FDs, even with a total value exceeding Rs. 10 lakhs, will not cause issues with the IT department as long as the source of funds is legitimate and documented. The key takeaway is that filing your Income Tax Return (ITR) annually is crucial, as transactions and thresholds often only trigger scrutiny when an ITR is not filed.

Ankit Neema

1359 Points Posted on 29 March 2021

No, there will be no issue, but FD source must be done from genuine source of income ,
if everything is on record then there is no issue

CA Raj Doshi

Practising CA

5649 Points Posted on 29 March 2021

The solution in most of the cases is to voluntary file IT return every year. All the specified transactions and their thresholds get activated when the ITR for such year is not filed.