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Pan no

Amogh Desai (Professor) (88 Points)

28 July 2011

Can Anyone help mein this

IS there any provision in our Income tax law regarding pan no
where tax is deducted before such pan no is obtained and the assessee wants to claim the refund
I heard from practing chartered accountant that there are no provisions

Let me explain with an example whatis my question

Mr.A has not given pan no at the start of the year to a particular bank
since his intrest income was above 10000 the bank deducted 20 % as TDS
at the end of the year MR.A submitted details of pan no but the bank says he cannot claim a refund as he had no pan no and nothing has been credited to his pan no As tds
is there any solution for MR A now to claim refund and is there any provsion for the bank to change such return

please help

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7 Replies

devang (CA FINAL article ) (181 Points)
Replied 28 July 2011

According to section 139A(1) of the Income tax act it is statutory that if the total income or the total income of any other person in respect of which he is assessable under the act during any previous year, (that is from the 01st day of April, 06 to 31st day of March, 07) exceeded the maximum amount which is not chargeable to income tax and those who carry any business or profession and satisfy the criteria under the Income tax Act are required to seek for allotment of Permanent Account No. (PAN) which is applied to the assessing officer as provided under the said provision of law.

The benefits though are not enumerated under the Act, but providing PAN details is mandatory for various activities of a person that which are provided in Act.

The cost of getting the PAN card is negligible as the fee taken is below Rs.100/-. The application for allotment of PAN is as prescribed in Form 49A which are available at the Public Relation Officer of any Income Tax Department within the District.

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Amogh Desai (Professor) (88 Points)
Replied 28 July 2011

HEy Devang You are Correct

I also have read this provision but i am asking whether is there a way to claim refund.

As if tax is deducted before pan is applied than after getting pan u dont get credit of tds in your account while filing a return so unless there is a specific provison or case law i am not entitled to get refund here

Nirmal (B.Com, M.Com, CAFinal) (93 Points)
Replied 28 July 2011

There is No Way to Claim TDS Refund if Deducted Without PAN No

Thanks

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pahuja (C.A Final Student ) (472 Points)
Replied 28 July 2011

Hi Mr. Amogh, it is a kind of penalty, and you should know, penalty can not be avoidable if you are making any mistake. So be aware from the next time, at the time of deduction of tax at source if you dont want to levy sec 206AA. Thanks and regards suraj pahuja.

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Amogh Desai (Professor) (88 Points)
Replied 28 July 2011

Hi Pahuja & Nirmal

How can tax be penal if the person is not in taxable limit
also 206AA states if the person has APPLIED before 31/03/2010 for pan Assessee would b charged at normal rates if he states the pan no
it states the penaltie existing for person taxable without pan but no where mentions that if the person subsequently gains PAN no and also is earning below 1,50,000 how can he/she claim the money from tax department
It is also compulsory to quote PAN in all documents pertaining to financial transactions notified from time-to-time by the Central Board of Direct Taxes. Some such transactions are sale and purchase of immovable property or motor vehicle or payments in cash of amounts exceeding Rs. 25000/-to hotels and restaurants or in connection with travel to any foreign country. It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection. Likewise PAN has to be mentioned for making a time deposit exceeding Rs. 50000/- with a Bank or Post Office or depositing cash of Rs. 50000/- or more in a Bank.

My question is what happens when a person after knowing such clause obtains pan card or submits pan card later in the year with a bank while bank has to tax the person quarterly is there a way of refund under any rule as tax deducted under exemption limit is refundable under sec 237 and 119(2)(b)

thanks Guys for helping me

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Amogh Desai (Professor) (88 Points)
Replied 27 November 2011

U GEt Refund If u file return with adequate details of pan

S.ASWATH (Manager) (704 Points)
Replied 28 November 2011

you can get refund through correction of tds statement filed. you can ask to that bank to file the correction statement it's includes pan of him/her so that tax will be automatically credited to the the account of him/her after that you can claim refund its possible

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