How to deal with TDS on FD cut before submitting the PAN to BANK

POSTED BY JP ON May 23, 2013 10:56 pm COMMENTS (9)

Hello,

May be a basic question, but couldn’t fiind any data by searching on Internet.

I have couple of FDs, for which I got interest and bank deducted TDS. After the bank deducting TDS, I realized that my PAN was not updated with bank and then updated my PAN details with bank.

As the TAX was deducted before submitting PAN, it is not showing in my Form 26AS.

As bank already cut this amount as TDS, how / where can I reflect this in my ITR2? (Currently, the total TAX paid will mismatch from ITR2 to Form 26 AS)

Any help is really appriciated.

-JP

9 replies on this article “How to deal with TDS on FD cut before submitting the PAN to BANK”

  1. safhal says:

    Sir

    I had a FD in bank for which bank deducted TDS Of 20% bcoz i had not given the PAN No .So it not reflecting in 26AS . So ask the Bank Manger to revised the TDS return . But till date no response from he so what shall i do where shall i file a complianed regarding this pls rply
    Thanks

    1. Hi safhal

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that

      Manish

  2. bemoneyaware says:

    I feel the second option is better JP but first check that CPC does is that Form 26AS match with your TDS certificate. It’s better to ask a CA and be on safe side
    As 20% TAX is already cut by BANK, can I SHOW only the interest amount (for which, bank cut TDS against my PAN) and pay the remaining 10% TAX (for the interest that I got before submitting PAN).

  3. Dear JP, please do not feel shy or sorry for TDS return revised filing. Bank is duty bound to update your correct PAN in the system.

    Thanks

    Ashal

    1. JP says:

      Thank you Ashal. Will contact bank to get this done.

  4. JP says:

    Thank you very much Ashal & bemoneyaware for your quick responses.

    Couple of clarifications from my end:
    Ashal: I actually inquired about, bank refiling the revised TDS when I submitted the PAN, but I didn’t get a positive response from bank officials. Let me try once again.

    bemoneyaware: I actually fall in to 30% tax slab, means requesting for tax refund is out of scope here and, I have to pay more 🙂

    Is there any other option than, “Requesting bank to refile the TDS against my PAN”

    Not sure, whether it is safe to do one of the below:
    1) Just pay the remaining tax demand and file returns.
    ====> In this case, as portion of Bank TDS amount is not reflected in Form 26AS, TAX demand (in ITR) and TAX PAID (in Form 26) will not match, and may be a high chance of getting a query from income tax dept.
    2) As 20% TAX is already cut by BANK, can I SHOW only the interest amount (for which, bank cut TDS against my PAN) and pay the remaining 10% TAX (for the interest that I got before submitting PAN).
    ====> In this case, TAX PAID (in Form 26) will be little more than TAX DEMAND (in ITR), but I won’t request for TAX REFUND. (This way, I pay, what I supposed to pay, but there is a slight dependency in accounts 🙁 )

    Hope, there is better way to deal with this problem, and waiting for suggestions from you people.

    -JP

  5. bemoneyaware says:

    No question is stupid or basic while answer might be 🙂

    So bank deducted TDS @20%?

    When tax is deducted by the bank, it is duly deposited with the government within the applicable due date. Hence once tax is deducted at a higher rate, due to non-availability of the PAN at the time of deduction, the bank would not be able to reverse the same if PAN is provided by the customer post deduction of tax.
    But all is not lost. Bank will give you TDS certificate.
    If customer has PAN at the time of filing of his return of income, then he can claim the excess tax amount deducted. Income tax authorities will scrutinize his claim and then issue the refund accordingly.

    Ref: HSBC FAQ on PAN and FD

  6. bemoneyaware says:

    No question is stupid or basic while answer might be 🙂

    So bank deducted TDS @20%?

    When tax is deducted by the bank, it is duly deposited with the government within the applicable due date. Hence once tax is deducted at a higher rate, due to non-availability of the PAN at the time of deduction, the bank would not be able to reverse the same if PAN is provided by the customer post deduction of tax.
    But all is not lost. Bank will give you TDS certificate.
    If customer has PAN at the time of filing of his return of income, then he can claim the excess tax amount deducted. Income tax authorities will scrutinize his claim and then issue the refund accordingly.

  7. Dear JP, the answer is very simple, The bank ‘ll file a revised TDS return for the TDS earlier deducted for non PAN case. Once the revised TDS return is filed, the data ‘ll be updated automatically against your PAN in your form 26AS.

    So ask your bank to file a revised TDS return with correct PAN.

    Thanks

    Ashal

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