Hello all, 

Would be of great help if CAs also reply...other ppl's opinions or who have experienced this, are more than welcome..

Please clarify imp points regarding SFT 005

 "One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to ten lakh rupees or more in a financial year of a person" 

This is for income tax to identify ppl who have 10 lakhs amount invested in FD in a bank right? It says renewal not to be considered. 

So pls clarify if a person has just 4.5lakhs invested in FD/Fds For a short duration(days or a month) then it matures AND he again reinvests and creates new FDs from the old same maturity amount for short durations..cycles continues full year... which basically means person has less than 4.5 lakhs as his primary amount which he has invested and once matured reinvested..... JUST LIKE RENEWAL CONCEPT.. IN THIS CASE SFT 005 IS OBVIOUSLY NOT APPLICABLE TO HIM RIGHT??? As funding for his FD is from maturity amount of previous FDs..and all being short duration Fds.

With example to make it more clear

If one had say 4 lakhs and created 2 FDs 380000 and 20000 short term FDs and when matured from the same maturity amount 4+ lakhs created a single or multiple FDs 353000 40000 etc.. which means same primary amount..was reinvested again and again as all were SHORT few days FDs, THEN OBVIOUSLY this SFT005 is not applicable right? Because it's like renewal... though not renewing on maturity date... Its same primary amount 4+ lakhs reinvested in parts, after few days of maturity. Overall the person had just 4 lakhs+ and his yearly int is only about Rs10500

So bank should not add all principal amt 353000+ 40000+380000+20000 + 300000+90000 etc like this right? As it's completely wrong..stating person invested more than 10 lakhs RIGHT? BECAUSE ALL THESE ARE DERIVED FROM SAME PRIMARY SOURCE..it's not different amounts invested and all running together...only when one closed other was created.

Another proof is that if he had 10 lakhs or 15 lakhs invested then interest would at least be more than 1 LAKH for the year...And not interest of just 10000/- which clearly which means investment was not or cannot be 15 lakhs or 10 lakhs. PLEASE URGENTLY CLARIFY THIS SIR/MAAM..

 In this SFT 005, IT intention is know about high value transaction or person having more than 10 lakhs who uses money to invest in FDs, obviously Not including repetitive amounts (meaning same amount reinvested again and again on maturity of old short term FD) else it would be wrong info abt person..that's why it says NO RENEWAL.. but here though it's not renewed... It's closed and reinvested in new FD or FDs from the same initial amount... 

HIGHLY IMPORTANT. Awaiting reply..kindly read full email... Would be of great help if CAs also reply...