Davinder Sodhi (Lawyer) (66 Points)
31 July 2011If an assessee having PAN but fails to furnish PAN to his bank and bank has deducted TDS @ 20% on bank interest on FD,
Obviuosly, TDS will not be credited to the assessee PAN or Form no. 26AS.
Now what will be the solution for the assessee.Can assessee claim TDS in his return or he has to give PAN to his bank and obtain correct TDS certificate.????
please help urgent
Rishab
(A.C.A.)
(155 Points)
Replied 02 August 2011
Hi there!
Assessee can very well claim TDS in his ITR, only condition is that the TDS Certificate has to be in his correct name & Address.
Further I wan't to Highlight one problem which now-a-days the Banks Staff are commiitting.
In many of my clients cases I have seen that even though the client has informed the bank his/ her PAN, but still many Nationalised/ Co-op Banks wrongly deduct 20% TDS on the Interest Income. Which they should not be doing, it is wrong on their PART. After deducting TDS @ 20% they issue TDS Certificate and also mention the PAN.
Income TAX Department has made this provision of deducting TDS at double rate that the rated normally applicable to the person, for failure to furnish PAN.
But,
What action is available against the deductor under the IT Laws, who is in possession of the PAN, but still deduct TDS Wrongly at double rates?
What action is available against the deductor under the IT Laws, who is in possession of CORRECT PAN, but still deduct TDS under WRONG/ Erroneous PAN?
Davinder Sodhi
(Lawyer)
(66 Points)
Replied 02 August 2011
CAclubindia
