Can I pre close tax saver FD before 5 yrs ?

POSTED BY harishj ON July 17, 2014 10:46 pm COMMENTS (2)

As I understand, if one has claimed exemption under 80C for investing in tax saver FD, you can’t pre close the deposit for 5 years.

However, if I need the funds and I am ready to pay the income tax in the year of withdrawal, shouldn’t I be able to pre close FD (by paying pre closure penalty, if applicable)? When I ask banks, they say that pre closing tax saver FD is not impossible.

Please clarify

2 replies on this article “Can I pre close tax saver FD before 5 yrs ?”

  1. Hemanth Chandra says:

    Sorry…. you cannot close a tax saver FD…..

  2. Hemanth Chandra says:

    No…. you can close a tax saver FD

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