How to claim refund for tax deducted on fixed deposit interest by the bank?

2 weeks ago 8

1 min read 01 May 2024, 02:45 PM IST

A elder national tin taxable signifier No. 15 H if the full taxation connected her income is nil

You don't request to record your income taxation instrumentality due to the fact that you person a PAN.

My parent is simply a elder citizen. She has immoderate fixed deposits with a slope and had earned involvement of ₹3.30 lakh, which crossed the income taxation exemption bounds of ₹3 lakh. So she deposited Rs.45,000 successful the Senior Citizen Saving Scheme (SCSS) to avail of benefits nether Section 80C. She had furnished a 15G signifier to the slope for nary taxation deduction astatine source. But the slope has deducted taxation @ 20% connected involvement arsenic she does not person PAN. The slope has advised america to record her ITR to assertion the refund. Can the slope not judge 80C impervious and not deduct tax? What should we bash to get the magnitude back? She does not person a PAN card. Can she record the instrumentality without a PAN card?

Answer: As per Section 206AA, since your parent does not person a PAN number, the slope indispensable deduct taxation @ 20% connected the interest even if your parent has submitted signifier No 15G. Since your parent is simply a elder citizen, she indispensable taxable signifier No. 15H, not 15G.

A senior citizen tin taxable signifier No. 15 H if the full taxation connected her income is nil. So, if determination is nary taxation liability aft considering the deduction nether Section 80 C, your parent tin taxable signifier no. 15H. The slope cannot judge the impervious nether Section 80 C portion deducting the TDS.

To assertion the taxation refund already deducted by the bank, it is indispensable to record her income taxation instrumentality (ITR). Please enactment that your parent tin not record her ITR due to the fact that she does not person a PAN. Since your parent has nary PAN, you indispensable archetypal use for one. However, if she has an Aadhaar Number, it tin beryllium utilized alternatively of PAN. Please taxable the aforesaid to the slope requesting to revise the submitted TDS instrumentality to notation PAN/Aadhaar fig against her name. Unless the slope carries retired this correction, your parent volition not get recognition for the taxation deducted by the bank. Moreover, adjacent if your parent submits from No. 15H, the slope volition again deduct taxation @ 20% connected the involvement unless she furnishes her PAN/Aadhaar.

You don't request to record your income taxation instrumentality due to the fact that you person a PAN.

Balwant Jain is simply a taxation and concern adept and tin beryllium reached astatine jainbalwant@gmail.com and connected @jainbalwant connected Twitter.

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Published: 01 May 2024, 02:45 PM IST