Mrunmai Deshpande (Housewife) 27 July 2018

Tds on bank fds

My wife has fix deposit receipts in a nationalised bank where I am joint holder. Recently, my wife has passed away. When I informed the Bank about her demise I was told by the Bank Manager that according to RBI guidelines I need not close the FD A/cs till maturity. As my wife was filing ITR regularly I have to inform IT Dept. about her demise and request it to cancel her PAN. The Bank will continue to deduct 10% TDS on the interest earned on these FDs. As my wife’s PAN will be cancelled and her ITR will not be filed in future due to her death, on whose name the above mentioned TDS will go? Though the interest earned on these FDs will be added to my income the bank has expressed its inability to transfer the TDS on my name. Please suggest the way out !

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Adv Deepak Joshi +917017821512 (Advocate) 27 July 2018

Bank Manage is presently you wrong facts, RBI never says that money will lock in any way .In facts RBI has clear guideline that FD can prematurely surrendered and interest will be paid depending upon the time after it was surrendered.

Moreover you can submit last return of your wife with death certificate and claim Return in your account.