1. What to do in a situation when the Banker has already deducted TDS on FD (FD amount is Rs.9.5 lacs with 6 years term) interest? Infact, the client/customer is an autonomous body under GOI and is exempted from paying income tax. The Bank, before deduction of TDS did not took any consent and now on persuasion it has requested to submit Form 15AA to avoid deduction of TDS in future course. Is it possible to recover such (TDS) from the Banker because the said autonomous body has nothing to do with the TDS Certificates?
2. Is TDS applicable on interest accruing form Savings Bank A/cs amounting to Rs.20 lacs (approx) in a Year?(SB A/cs were opened as per HO directives and these are specifically for project operations in addition to the existing Current A/cs for normal operations)?
03 July 2008
THE BANKER IS LIABLE TO DEDUCT TDS ON FD.......HE WILL NOT IF THE RELEVANT FORM IF SUBMITTED BY YOU.......NO INTIMATION OR PERMISSION FROM DEDUCTEE IS REQUIRED BEFORE DEDUCTING TDS , THIS IS BECAUSE THE BANKER IS LIABLE AS PER LAW.
YOU CAN CLAIM REFUND OF TDS MADE IN THE RETURN FILED
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