Want to book a fixed deposit without PAN card? This is what it will cost you
Fixed deposits are one of the widely used investment tools as there is no risk factor and the returns are guaranteed too. A fixed deposit plan gives higher rate of interest compared to savings accounts. It requires you to deposit a lump sum of money in the FD for a fixed period of time ranging from 7 days to 10 years. While opening an FD account with any bank, you are required to submit your PAN card details as well. However, if you don't have a PAN card, you may have to pay some of your gains as taxes to the IT department.
Fixed Deposit: TDS
In the absence of PAN, the following are the implications for customers: 1. TDS will be recovered at 20% (as against 10%) 2. NO TDS credit from the Income Tax department 3. NO TDS certificate will be issued (As per CBDT circular no:03/11) and 4. Form 15G/H and other exemption certificates will be invalid and penal TDS will apply. (Reuters)
Fixed Deposit: Premature closure penalty
Fixed Deposit: Premature withdrawal
As per the Terms & Conditions of Fixed Deposit Accounts of the HDFC bank, the penalty on premature closure of Fixed Deposits, including sweep-in and partial closures, has been fixed by the Bank at the rate of 1% of the fixed deposit interest rate. This is applicable with effect from 24th January, 2011. (Reuters)