Foreclosure of TAX SAVER BANK DEPOSITS

Tax queries 212 views 1 replies

A Taxpayer has invested a sum of Rs 1.50 lacs in a TAX SAVER BANK DEPOSIT during FY 2018-19 and claimed eligible exemption under Sec 80 C. He filed his IT return, which was processed. During the FY 2019-20, he is facing some financial crisis and wanted to foreclose the TAX SAVER Bank Deposit  .But Bank refused to foreclose quoting that it is TAX SAVER Deposit having a lock in period of  5 years. Whether the Tax payer can pay the Income Tax benefit availed  to the Income Tax Department  with interest if any and request the Income Tax Department to issue a NO OBJECTION Letter to the Bank to foreclose the Tax Saver Deposit?

Replies (1)
No sir, it is not possible.
You have to wait till maturity date. No loans are available against this tax saver FD


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