I recently got a mail from my bank saying they have approved a personal loan for me. But I had not even applied for one. Should I call the bank and tell them to cancel it? If the loan has been approved, does it mean I will have to pay interest on it?
Many banks run a pre-approved personal loan programme for existing customers, under which the latter are eligible for a personal loan at preferred terms, which may include the rate, faster processing or easier documentation. You would have received this communication as your bank would have found you eligible under such a programme. On your specific query, while the loan may have been approved, no interest will be levied as long as you do not give your specific consent or sign the loan agreement documents.
I had put Rs 50,000 in a five-year tax-saver deposit last year. The bank cuts TDS on that. But since it is a tax-saver, can they do it?
In the Finance Bill of 2006, the government had announced tax benefits on bank fixed deposits with tenures of not less than five years u/s 80C of the IT Act, 1961 vide Notification Number 203/2006 and SO1220 (E) dated 28/07/2006.
Under this scheme, you can invest a minimum of Rs 100 to a maximum of Rs 100,000 in a financial year for a period of five years and can claim tax benefit under Sec 80C up to the amount invested in the fixed deposit, subject to the overall cap prescribed under the section, currently Rs 100,000. These deposits have a lock-in period of five years and you cannot take any loans/advances against the deposit. However, in line with the guidelines, interest earned on these fixed deposits will be liable to tax under the Act and tax will be deducted in accordance with the provisions of section 194A or section 195 of the Act.
In your particular case, as you have put Rs 50,000 in a five-year tax saver deposit, you can claim this amount (Rs 50,000) for tax benefits under the overall limit of Sec 80C. However, please note the interest you earn on the deposit will be subject to TDS.
My mother has a bank locker in her name. She wants to add my name to it, so that I can also operate it. Will there be any additional charge for this? Can the bank refuse to do it under any circumstance? What document will we have to give?
There is no additional service charge if your mother adds your name to the bank locker held in her name. However, the locker agreement will have to be redrawn and you will incur stamp duty charges as applicable. You will have to fill the required documentation for adding your name.
The views expressed are the expert's own. Send your queries to yourmoney@bsmail.in
Prashant Joshi, Managing director & head, private & business clients (India), Deutsche Bank, answers your questions
