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Refund

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

09 June 2011

HELLO FRIENDS, MY CLIENT HAS NO TAXABLE INCOME HE RECEIVES INTEREST FROM FD5000 AND BANK DEDUCTS 20% TDS BECAUSE PAN IS NOT PROVIDED TO THE BANK.

CAN HE GET THE REFUND OF THIS TDS.

PLS. HELP ME.

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8 Replies

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 09 June 2011

FIRSTLY GIVE PAN DETAIL; TO BANK AND ASK THEM TO REVISE THE TDS RETURN

AFTER THIS FILE RETURN AND YOU CAN GET THE REFUND

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 09 June 2011

Originally posted by : RAJ KUMAR
	HELLO FRIENDS, MY CLIENT HAS NO TAXABLE INCOME HE RECEIVES INTEREST FROM FD RS. 5000 AND BANK DEDUCTS 20% TDS BECAUSE PAN IS NOT PROVIDED TO THE BANK. CAN HE GET THE REFUND OF THIS TDS. PLS. HELP ME.

Bank can not deduct TDS on interest below 10000 per year,

before posting data to forum, please ensure about your data.

Prem Chandra Gupta (Financial Specialist) (52 Points)
Replied 09 June 2011

TDS can be deduct only if Interest paid above Rs. 10000/- by bank in a financial year.

RAJ KUMAR (FINANCE MANAGER) (1393 Points)
Replied 10 June 2011

BUT HE HAS NOT PROVIDED THE PAN TO BANK THAT IS Y BANK DEDUCT TDS ON RS. 5000/-

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 June 2011

Originally posted by : RAJ KUMAR
	BUT HE HAS NOT PROVIDED THE PAN TO BANK THAT IS Y BANK DEDUCT TDS ON RS. 5000/-

even in case of no pan, bank is not entitled to deduct tax unless the gross interest exceeds 10000 per year.

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 10 June 2011

get more details from your client, and ask for from 16A, there must be another fact behind this.

Prem Chandra Gupta (Financial Specialist) (52 Points)
Replied 10 June 2011

Permanent Account Number (PAN) is required under Sec. 139A only if the conditions thereunder are satisfied. Even where a person enters into a transaction, which requires PAN to be cited, but he does not have it, the law provides for filing Form 60 giving details of his identification. Know Your Customer (KYC) norms followed by banks do not also require a bank to insist on PAN for opening a deposit account. There is no sense in a bank insisting on PAN, where the interest on the deposit does not exceed Rs. 10,000 during the year.

Tax is required to be deducted at 10 per cent as provided under Sec. 194A, but at 20 per cent, if PAN is not furnished as provided under Sec. 206AA of the Act. This requirement is applicable only where tax is required to be deducted from the payment exceeding the prescribed limit of Rs. 10,000. The contingency of application of tax either at the prescribed rate of 10 per cent or non-PAN rate at 20 per cent would arise only where the payment exceeds the limit for tax deduction at source. Banks would not, therefore, be right in deducting tax at 20 per cent, when the payment falls short of the limit.

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 15 June 2011

Originally posted by : Prem Chandra Gupta
	Permanent Account Number (PAN) is required under Sec. 139A only if the conditions thereunder are satisfied. Even where a person enters into a transaction, which requires PAN to be cited, but he does not have it, the law provides for filing Form 60 giving details of his identification. Know Your Customer (KYC) norms followed by banks do not also require a bank to insist on PAN for opening a deposit account. There is no sense in a bank insisting on PAN, where the interest on the deposit does not exceed Rs. 10,000 during the year. Tax is required to be deducted at 10 per cent as provided under Sec. 194A, but at 20 per cent, if PAN is not furnished as provided under Sec. 206AA of the Act. This requirement is applicable only where tax is required to be deducted from the payment exceeding the prescribed limit of Rs. 10,000. The contingency of application of tax either at the prescribed rate of 10 per cent or non-PAN rate at 20 per cent would arise only where the payment exceeds the limit for tax deduction at source. Banks would not, therefore, be right in deducting tax at 20 per cent, when the payment falls short of the limit.