Premature withdrawal tax treatment: early withdrawals from designated savings schemes are treated as income and taxed. The amendment adds Senior Citizens Savings Scheme deposits and five year post office time deposits to qualifying investments for deduction and provides that any amount, including accrued interest, withdrawn from these accounts before five years shall be deemed the assessee's income in the year of withdrawal and taxed accordingly, except that interest already included in prior years' income and amounts received by a nominee or legal heir on the assessee's death (other than previously untaxed interest) are not liable under this deeming rule.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Premature withdrawal tax treatment: early withdrawals from designated savings schemes are treated as income and taxed.
The amendment adds Senior Citizens Savings Scheme deposits and five year post office time deposits to qualifying investments for deduction and provides that any amount, including accrued interest, withdrawn from these accounts before five years shall be deemed the assessee's income in the year of withdrawal and taxed accordingly, except that interest already included in prior years' income and amounts received by a nominee or legal heir on the assessee's death (other than previously untaxed interest) are not liable under this deeming rule.
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