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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