RBI Guidelines on Fix Deposits in Banks
1 year ago
Dear Sir,
I am a senior citizen with 72 years of age. My wife and I have JT FD A/cs(Many FDRs) with a nationalised bank for a period of10 years. My wife is the 1st holder and I am the Jt second holder. All FDRs are under Quarterly Interest Plan with interest accrued every quarter is transferred to her single SB A/c . I also have single saving bank A/c with the bank. My wife passed away 4 ½ years back. I was told by the Bank that as per RBI Guidelines I need not close the FD A/cs till maturity. As per my wife’s will, now, all the interest accrued is being transferred to my single SB A/c. IT Dept. has also approved me as the legal heir for my wife’s income. This income is added to my income every quarter. As my wife is the 1st holder in all the above mentioned FDRs, TDS is being deducted every quarter from this interest on my wife’s name. I deduct this TDS and pay remaining Income tax on my total income but I receive the Demand Notice for the amount equal to the TDS deducted on my wife’s PAN for the last 3 years. I request you to suggest solution to this problem and oblige.
Yours sincerely,
Sudhir Prabhakar Gadkari
The very first thing that you should do is to give an application to the Bank to change the ownership of the FDs in your name. In my view they have mislead you as after the death of your wife an account can never remain opened in her name.
Once you have got the FD completely in your name then it will automatically solve the issue of the TDS.
As far as receiving the notification from IT is concerned, you just send them a clarification letter about the death of your wife. They should stop sending the letters.
Better go to the Office of any charted accountant or auditor and get clarify all your doubts who are experts in the financial matters.
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