CA Rahi Verma (CA MBA BCOM) (44 Points)
28 December 2013My client is XYZ Bank. they paid interest on which they deducted TDS @ 10% 194A. But notice came that TDS should be deducted @ 20%. That means they are saying a short deduction of Rs3530+interest[i.e. (20-10)%]. Bank system has also deducted 20% automatically. But bank filed a return according to 10%. Dont know how to deal with the situation please explain.
Thanks in advance
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 28 December 2013
Hi,
For FY 2011-12, TDS rate was 10% normal and 20% in case of invalid PAN / no PAN. Hence, Bank must have got the notice because of invalid / no PAN. If indeed PANs were not there then pay short deduction to Dept. If this is not the case, then intimate (in written) to the Income Tax TDS cell.
CAclubindia
