An old man has three fixed deposits of 10000 each. The maturity value of each is about 12700 one maturing in Sep 2009, another in Jan 2010 and yet another in Jul 2010. When he went to encash the Sep FDR, the bank said that payment will be made by cheque though the amount if less than 20000 as all the FDRs will be clubbed together which will make it 30000. I think each repayment is separate and payment by cheque is mandatory only when the payment is in excess of Rs.20000. Please guide the law of income tax on this subject.
