PENALTY FOR PRE-CLOSURE OF FD

Share
Share This Thread
  1. krishnamurthy

    krishnamurthy New Member

    Sir,
    I have deposited some amount in fixed deposit in a bank for the period of 3 years. Owing to my financial commitments , i preclosed the deposit within 5 months. The bank has paid the interest on first quarter. When the bank depositing the preclosed FD amount into my SB account it deducted an amount as penalty for preclosure.

    My question is as follows:

    The bank has given Rs. 50,000 as interest.

    The bank deducted Rs. 9,000 as penalty for pre-closing.

    What is the actual amount i have earned as interest from this Fixed Deposit?

    I ask this for income tax purpose.

    Please anybody give correct answer.

    Thanks.
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    The actual amount earned as Interest in this case would be Rs. 50,000 - Rs. 9,000 = Rs. 41,000

    Rs. 41,000 is the interest that you have earned and Income Tax would be liable to be paid on such income under head "Income from Other Sources"

    Tax would be levied as per the Income Tax Slab Rates.
     
  3. krishnamurthy

    krishnamurthy New Member


    Sir,

    Thank you Sir.
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Income Tax Penalty Procedings Income Tax Oct 10, 2017
Late TDS filling penalty process Income Tax Oct 6, 2017
Advance to Employees in Cash exceeding 20,000/- Tax and penalty provisions regarding Income Tax Jul 6, 2017
Capital Gain tax on property and its penalty Income Tax Dec 26, 2016
TDS Return non-filing penalty Income Tax Aug 6, 2016