• Premature closure of tax saver FD

Dear sir,
i have accidentally opened income tax saver account in sbi by online mode. however i do not wish to avail this facility when i requested the bank to close my account they said that there is a lock in period of five years for tax saver account and it cannot be closed. kindly advise me regarding the closure of tax saver fd. i have opened the account 15 days back and i do not want the tax saver facility. i need the money very urgently.
Asked 1 month ago in Taxation from Bangalore, Karnataka

Under Section 80C of the income taxact, you can claim deduction for investments up to Rs 1.5 lakh in tax-saving fixed deposits. ... these deposits have a lock-in period of 5 years. Premature withdrawals and loan against these FD's are not allowed.

Ajay Sethi
Advocate, Mumbai
73013 Answers
4384 Consultations

5.0 on 5.0

during the lock-in period it is not allowed. you may close it through your home branch only contact branch manager.

 

Mohammed Mujeeb
Advocate, Hyderabad
14513 Answers
6 Consultations

4.5 on 5.0

You cannot  close the account and with draw your money 

Ajay Sethi
Advocate, Mumbai
73013 Answers
4384 Consultations

5.0 on 5.0

1. you can break the FD,

2. apply to discontinue the FD to the bank in written mode,

3. you will lose the benefit of tax due to early closure,

4. a penalty may impose for breaking the FD

 

Suneel Moudgil
Advocate, Haryana
1713 Answers
3 Consultations

4.7 on 5.0

another option is to take a loan against FD

Suneel Moudgil
Advocate, Haryana
1713 Answers
3 Consultations

4.7 on 5.0

Customers cannot withdraw the fixed deposit before the expiry of five years from the date of its receipt, according to SBIPremature closure of fixed deposit under tax saving scheme is also not allowed during the lock-in period. After 5 years, investors can close it through the home branch only.  Note that the maximum deposit period is 10 years.

In accordance with Government notification, premature withdrawal of FD is not allowed prior to the completion of original tenure i.e. five years.

T Kalaiselvan
Advocate, Vellore
62966 Answers
814 Consultations

5.0 on 5.0

The minimum tenure is 5 years within which you won't be able to withdraw funds from your account.

Withdrawal not allowed before the lock-in period of 5 years.

 Note that the maximum deposit period is 10 years.

When there is no provision in law for withdrawal you cannot do anything about it except to wait for the minimum stipulated period of deposit.

T Kalaiselvan
Advocate, Vellore
62966 Answers
814 Consultations

5.0 on 5.0

Dear Sir,

You may get issue a legal notice or appraoch Banking Ombudsman or file a writ petition. They cannot say no for your request.

Kishan Dutt Kalaskar
Advocate, Bangalore
5008 Answers
158 Consultations

5.0 on 5.0

there is no provision.

Mohammed Mujeeb
Advocate, Hyderabad
14513 Answers
6 Consultations

4.5 on 5.0

The minimum lock-in period for the deposit is 5 years and the maximum tenure is 10 years. An account holder cannot prematurely withdraw funds before 5 years. In case of death of depositor, legal heir of depositor may per-maturely close it through home branch only. Premature withdrawals and loan against these FD's are not allowed. So better avail benefits

Yogendra Singh Rajawat
Advocate, Jaipur
17397 Answers
21 Consultations

4.6 on 5.0

1. You can go to bank and ask official to close your FD as you don't want to avail tax benefits from them same. 

2. They are just convincing you so that you doesn't close your FD account.

3. They cannot refuse to release your money from that account.

Mohit Kapoor
Advocate, Rohtak
7134 Answers
2 Consultations

5.0 on 5.0

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