Legal Question in Banking Law in India

I had opened an F.D. account with the Indian Bank (senior citizen, not having any SB a/c with the bank), and I had submitted the PAN card photocopy at the time of opening of the F.D. account, some 3 to 4 years ago. Subsequently, I kept on adding further amounts in the same name, through add on's. I do not have any acknowledgement of the same, as the photocopy of the PAN card was attached with the F.D. form, at the time of opening the account. The total interest on the F.D.'s amounted to less than Rs.10,000(for any given financial years including this year). Till the previous year, no T.D.S. was deducted as the interest did not exceed Rs. 10,000. But this year (2010-11) the bank has deducted T.D.S. @ 20% on the grounds that the PAN details are not seen in their records. The pan no. were mentioned in all the subsequent forms, and the bank never asked me to produce the proof of the same. As such I was under the obvious belief that the bank had entered the PAN details when it was first provided. I would like to know if it is mandatory for the bank to enter all the details provided in the form. Can I ask the bank to accept a fresh photocopy, update it in their record and revert the TDS? Can I claim the TDS even though the TDS certificate does not contain my PAN no.?


Asked on 6/26/11, 8:35 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

One does not know whether you have submitted form 15 H for each financial year. If you have submitted the form each year duly signed, you can request the Bank to reverse the debit for TDS. You can also remind them of the copy of the PAN Card given to them and also submit a fresh photo copy of the pan card. If the Bank does not reverse the debit, you can claim for refund from the Income tax department notwithstanding the non mention of the PAN number in the Certificate, by filing a return of income showing non taxability of your income and requesting for issue of refund order.

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Answered on 6/26/11, 9:24 pm


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