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.
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.
FIRSTLY GIVE PAN DETAIL; TO BANK AND ASK THEM TO REVISE THE TDS RETURN
AFTER THIS FILE RETURN AND YOU CAN GET THE REFUND
| Originally posted by : RAJ KUMAR | ||
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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. |
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Bank can not deduct TDS on interest below 10000 per year,
before posting data to forum, please ensure about your data.
TDS can be deduct only if Interest paid above Rs. 10000/- by bank in a financial year.
BUT HE HAS NOT PROVIDED THE PAN TO BANK THAT IS Y BANK DEDUCT TDS ON RS. 5000/-
| Originally posted by : RAJ KUMAR | ||
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BUT HE HAS NOT PROVIDED THE PAN TO BANK THAT IS Y BANK DEDUCT TDS ON RS. 5000/- |
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get more details from your client, and ask for from 16A, there must be another fact behind this.
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.
| Originally posted by : Prem Chandra Gupta | ||
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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. |
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