24 May 2012
SIR. AN UNEMPLOYED WIDOW SR.CITIZEN WITH FAMILY PENSION OF RS 80000/-PA &.HAVING INTEREST ON FDR RS.20000/-P.A.IE THE TOTAL ANNUAL INCOME NOT TAXABLE.SO NOT HAVING A PAN.NO.NO CASH TRANSACTION >50000/-MADE BY HER.GIVEN FORM 60 WHILE OPENING THE A/C & GIVEN FORM 15H AT THE BEGINING OF FY. BANK HAS DEDUCTED 20% TDS ON INTEREST .REASON PAN NO NOT PROVIDED.STILL INSISTING FOR THE CURRENT YR.ALSO FOR PAN NO. FOR THE PREVIOUS YEAR ASKING THE 90 YR OLD LADY TO HAVE A PAN NO.& FILE A IT.RETURN FOR REFUND. HOW FAR THE BANK IS JUSTIFIED.?IS IT MADE MANDATORY THAT EVERY BANK CUSTOMER SHALL HAVE A PAN CARD.? THE BANK IS NOT GIVING BACK THE TDS WRONGLY DEDUCTED FROM THAT LADY INTEREST AMT. WHAT TO DO.? PL GUIDE. REGARDS. KANTA GOYAL.
27 May 2012
Under the Existing provisions of Income-tax Act, Bank are not obliged to accept Form 15G/15H unless such forms contains PAN of the Declarant. As such the Bank has rightly (and not wrongly as mentioned by you) deducted tax at source. You have now no other option but to file return and claim refund. However for current year, you can still obtain PAN and intimate Bank about it so that no further deduction is made at source.
Adv C P Chugh firstname.lastname@example.org +91-9971124526