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Doubt about TDS refund

Peacemaker (no) (29 Points)

30 June 2011

The account holder a senior citizen deposited Rs 3,50,000 in canara bank FD on 24/07/2008....the FD is for 3 years.He went to the bank today to close the FD but the bank has deducted TDS for all the 3 years even though he has submitted his pan card details and form 15G(i think thats the form )....the bank is saying he can get refund from the tax department only for the 3rd year....the previous year he should have submitted his pan card info but didnt so he cant get the refund for the first and second year..... but the guy has given his pan card details and filled form 15g to the bank when he opened the FD account itself.....also his income is less than Rs 2,00,000/ year so can he get the TDS refund for the first and second year of his deposit?

Experts please advice....thank you.

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9 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 30 June 2011

1) he had to offer PAN xerox and PAN card available at the time of opening FD/TDR, fill in respective columns of form about his PAN number. if he has done so , then challange the bank to pull out the a/c opening form, and verify the same. if found correct then take the matter with banking ombudsman, where he will get the TDS deducted back by decuting from salary of the person in bank dealing the same.

2) when he has submitted PAN, then 15G or 15H is contravention of the act, where the assesee is willingly misleading the bank .

3) annual interest should be added to incometax return, for which you had to take the figures from bank at every year end, why you have not obtained the same?

recheck what you hav did and why, then proceed to challange the bank .

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Hetal (B.com,M.com,IPCC-I) (214 Points)
Replied 30 June 2011

First of all for the senior citizen form 15H is applicable. He can ask for tds certficate from the bank for all 3 yrs. And ask to file return for first 2 yrs to get tds refund.

Peacemaker (no) (29 Points)
Replied 30 June 2011

Originally posted by : U S Sharma
	1) he had to offer PAN xerox and PAN card available at the time of opening FD/TDR, fill in respective columns of form about his PAN number. if he has done so , then challange the bank to pull out the a/c opening form, and verify the same. if found correct then take the matter with banking ombudsman, where he will get the TDS deducted back by decuting from salary of the person in bank dealing the same. 2) when he has submitted PAN, then 15G or 15H is contravention of the act, where the assesee is willingly misleading the bank . 3) annual interest should be added to incometax return, for which you had to take the figures from bank at every year end, why you have not obtained the same? recheck what you hav did and why, then proceed to challange the bank .

1) Yeah he said he had given the pan details when he opened the FD account will ask him to check the account opening form with the bank.....the bank told him to come after 1 week as they are really busy with some other work.

2) can you explain what he has done wrong? i dont get it :(

3) His total income including the interests from the deposit is less than2,00,000 / year ....so he doesnt need to file the return i think.Also the Interest was locked for the 3 year period he could not take the amount even if he wanted to.

Peacemaker (no) (29 Points)
Replied 30 June 2011

Originally posted by : Hetal
	First of all for the senior citizen form 15H is applicable. He can ask for tds certficate from the bank for all 3 yrs. And ask to file return for first 2 yrs to get tds refund.

I was not sure about the form it was 15 something i made that clear in the first post.....yeah will tell him to get the TDS certificate from the bank for all the three years.

Gourav Kapoor (CA Final Student) (2977 Points)
Replied 30 June 2011

Originally posted by : U S Sharma
	1) he had to offer PAN xerox and PAN card available at the time of opening FD/TDR, fill in respective columns of form about his PAN number. if he has done so , then challange the bank to pull out the a/c opening form, and verify the same. if found correct then take the matter with banking ombudsman, where he will get the TDS deducted back by decuting from salary of the person in bank dealing the same. 2) when he has submitted PAN, then 15G or 15H is contravention of the act, where the assesee is willingly misleading the bank . 3) annual interest should be added to incometax return, for which you had to take the figures from bank at every year end, why you have not obtained the same? recheck what you hav did and why, then proceed to challange the bank .

agree with U S Sharma...

Regards

Gourav

if u are a CA passionate, this is for you...CA PASSION

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Peacemaker (no) (29 Points)
Replied 01 July 2011

I confirmed with him the form he has submitted is 15G only form 15H is for people who are 65+ only.As he has submitted the 15G form in the first year itself they should not have deducted TDS amount for the all the three years right? Experts please advice how he can get the TDS for all the three years....thank you.

Pragnesh (AM - Taxation) (1259 Points)
Replied 01 July 2011

Dear Friend, as per my view, If asssess is +65 then he should file 15H other wise 15G. in your case 15G had been filed. as per rule "15G CAN NOT BE filed by any person whose income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax" if Bank interest income is cross above specified limit then TDS will be applicable.

Peacemaker (no) (29 Points)
Replied 01 July 2011

Originally posted by : Pragnesh Sitapara
	Dear Friend, as per my view, If asssess is +65 then he should file 15H other wise 15G. in your case 15G had been filed. as per rule "15G CAN NOT BE filed by any person whose income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax" if Bank interest income is cross above specified limit then TDS will be applicable.

Firstly thanks for the detailed reply....he earned around Rs 35000/ year as interest income so from what i understand from your reply it exceeded the limit prescribed so the bank was right in deducting the TDS.The guy earns less than Rs 190000/ year so he doesnt come under any of the tax bracket so how can he claim the refund for the TDS deducted by the bank for all the three years? will wait for your valuable advice thank you.

Pragnesh (AM - Taxation) (1259 Points)
Replied 01 July 2011

Dear Member, Bank dont have any idea about income of any assesse. so doing their duties to avoid become defaulter. Now you can claim your TDS refund by way of filing ITR before due date. You just disclose your income less than Rs.1.90 Lacs (Income not chargeble under any Tax ) and give TDS details which is deducted by Bank and claim for your refund.