Premature fd withdrawal is taxable

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To invest in a property i am withdrawing my fixed deposits so wil this amount be taxable ?

Replies (6)
what was the date of making FD and for what period it was made??
It was.made for 12 months but only 3 months have passed and I m in need of money so as to buy a house.

Withdrawal from FD is like taking back principal amount. It is not taxable. But, the interest accrued to you so far on FD is taxable.

@ ritu... only intt accrued for 3months will be taxable not whole of FD amt.

ok....But what if i dont show it while filing the return....Actually my dad is goin to withdraw the fds and he is a retired employee.....i knw dat the interest element is taxable but until now i havent shown it as taxable as the tds used to get deducted nd therefore there didnt arised ny such need...but bcos v r planning to buy a home do i need to purposefully show that.

well you should have shown this amt. because 10% tds is deducted on FD intt whereas net rate of tax is 10.3% for individuals having income less than 5lakhs.... so the diff of 0.3% would have been payable by you.... now, forget the errors done in past, you will be reqd to pay the diff when you receive a notice from dept., till then forget that.... but for now, you should show correct amt this time without any error.


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