In my earlier article I have posted about the compulsory submission of the PAN details to avoid the higher deduction of TDS for your fixed deposit.This new rule is with effect from the 1st April, 2010. Banks started informing about the new rules to the customers. Today I got the mail from HDFC bank about the rules and rates ar TDS will be deducted as follows:
“As per section 206AA introduced by Finance (No. 2) Act, 2009 wef 01.04.2010, every person who receives income on which TDS is deductible shall furnish his PAN, failing which TDS shall be deducted at the rate of 20% in case of Domestic deposits and 30.90% in case of NRO deposits”
Please further note that in the absence of PAN, Form 15G/H and other exemption certificates will be invalid even if submitted & penal TDS will be applicable.
In case your PAN details are not updated with the bank, please visit nearest HDFC Bank branch to submit/confirm the same at the earliest.
To avail TDS benefit on specific Fixed Deposits that you hold with the bank, you are requested to submit the relevant form 15G/H if applicable to you. A fresh form 15G/H needs to be submitted for the FY 2010-11. Kindly visit your nearest HDFC Bank branch to submit the same.
I hope this post will be useful for those who are maintaining the fixed deposit accounts. Submit the PAN details and avoid losing the excess tax.
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November 27, 2010 at 1:39 am
hi
Thanks for this comment. Keep commenting
thanks
April 10, 2011 at 9:20 am
I have a deposit which is yielding me an interest of 50000 yearly from my deposits and if i have deposited my form 15 G /H to the bank along with pan card than …there should not be any deduction of tds from my interest
July 11, 2011 at 10:30 am
Dear Sir
I am a working women with salary 4,94,000 pa
I have few FDRs in a bank,the calculated interest as per form 16 A given by bank states that
total interest earned by me till march 31,11 is Rs 6990/- the bank has deducted 20% tax on this interest telling me that i have not given PAN
while i have a PAN and my salary account in the same bank,but they say ur PAN details are not updated
My query is
Can the bank deduct TDS if total interest earned during a year is
< 10,000
what should i do now
i have not filed my return yet
should i get a refund from IT dept or from bank for wrong deduction of tax ?
Reeya
March 27, 2012 at 11:13 pm
hi,
what exactly is this updation of PAN card in the bank. in my case they took the xerox of my PAN card and and asked me to put my signature on it. now i am afraid it can be used for wrong purpose..is it possible ?