Dear Experts,
I want to know what are the tax implications upon an individual.
I have invested certain sum in bank fixed deposit for 5 years and claimed deduction under 80 C 2 years back.
If i have withdraw the sum today due to exigencies ,how would that impact my tax this year?
Then the principal amount you claimed as deduction shall be taxable in the year of premature withdrawal.
The deposits made under Tax Savings Scheme is not allowed to be encashed before the expiry of five years from the date of its receipt. Further no loan is also to allowed against the security of such TDRs.
No term deposit shall be en-cashed before the expiry of five years from the date of its receipt
Dear Experts,
I am aware that withdrawal is not permitted.
In case of exigencies/emergencies,withdrawal was made .How will the law react to that?
Law does not give anty exception even in case of emergency withrdarwal , hence if it is withdrawn then it shall be taxed in the year of such withdrawal.
From law point of view u hv to pay tax in the year of withdrawal by adding FD amt to Taxable income....But in reality, if u hv salary income, dont offer FD to tax. simple. Further, if u hv business/prof income and ur under scrutiny or something, then offer it to tax...
I mean to say, bank will neither ask for ur IT return copy nor will they deduct tax on maturity of FD.....At the end its ur wish....i only suggested an idea to escape if u hv salary income
I have already given the reply above. It may be mistake on the part the concerned bank branch and may be the cause concern of their Internal / Concurrent Auditor. From the Assess's point of view, it is recommeded to be the honest in paying the taxes.
CAclubindia
