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Many Taxpayers had a tough time getting a refund of the tax deducted against his fixed deposits with public sector banks, as the tax deduction at source (TDS) certificates issued to them by the banks did not mention there permanent account number (PAN). Depositors of banks and post  offices — especially pensioners — are put to a lot of trouble at the time of filing tax returns and claiming refunds, as these organisations often issue incomplete or incorrect certificates.

Banks and post offices file quarterly TDS returns for deductions they make against the interest paid to customers on savings in fixed deposit schemes.  There’re cases of errors, omissions or quoting of wrong PAN in quarterly returns filed by the deductors. And post offices and banks are the most common culprits. This delays refunds and makes tax payers suffer.

There are instances of tax being deducted at source without the deductor submitting it to the I-T department. In other cases, mandatory information like PAN and amount deducted were not mentioned.  Amending the TDS rules, Central Board of Direct Taxes has revised TDS certificate forms to include receipt number of the TDS return filed by the deductor.

Now, Tax Deduction Account Number (TAN), PAN of deductee and receipt number will form unique identification for allowing tax credit claimed. Agreeing to pensioners’ allegations, a senior bank official blamed ‘clerical errors’. “Department of Posts is taking corrective action in this matter and we’re trying to streamline the process,” chief postmaster general, Rameshwari Handa said.

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  1. CA Syed Najish Ali says:

    You have to revise your Quarterly E-TDS Returns mentioning Correct PAN.
    There is no time limit for revising the Quarterly Returns till now.

  2. Kail Chand Joshi says:

    Dear Sir,

    I Know to that A Company Deduct a TDS Other Company, But Mention Wrong Pan No. Mention In Qtr. Return
    How And Rectify The Problem. Please Reply As Soon As Possiable

  3. Mahendra Purohit says:

    Dear Sir, I.T. Department send notice to me for T.D.S. Payment information reg. U/s. 194-A I have borrowed a loan of Rs. 12,25,000/- in F.Y.2009-10, From M/s. Reliance Consumers ltd. I have paying loan installments with interest, but i am induvidal person & unaudited firm pl. so reply this above matter with lellter format to i.t. department

  4. dipak says:

    If an assessee having time deposits in co-operative bank who get Rs.10000/- & more interest from the same as well as the assessee is nominal member not having any voting rights
    Can we deduct the TDS u/s 194A

  5. CA Kunal Malpani says:

    The question put forth by sudhir is when deductee is on cash basis and deductor is following mercantile basis then how claim is to be taken. The answer is quite simple as per the IT Act every person can follow any 1 out of cash or mercantile system of accounting. As the deductee is following cash basis he will claim the TDS amount in the year in which the amount is actually received buy him. The claim for TDS is allowed only in the year in which the income has been offered. Take the case of CA and Bank Audit Fees the same way credit is allowed. You can also add a note to the computation of income explaining the same to avoid any inconvenience but as the returns are paperless now you will have to take the initiative and submit your say vide a letter to the AO or wait for him to disallow your claim of TDS and then give reply. Many case laws are also available on the same logic.

  6. V P Raguram says:

    One of the Solutions to this could be the TRP ( Tax Return Preparers ) could be sub- contracted by the GOI for each of the post offices.The issues faced by the Investors are unlikely to be rectified in a short span of time, until something significant like this is contemplated by the GOI.

    As far as the Banks are concerned (including cooperative banks),it should be easily achieved, once the GOI directs them to do.

  7. Binoy Gupta says:

    There are provisions in the Income Tax Act specifying the dates by which TDS certificates have to be issued by the deductors and there are also penalties for not issuing the TDS certificates within that time.
    The only problem is how do you enforce them.
    Credit for TDS has to be made and also allowed in the year in which the Tax is deducted.

  8. Sudhir says:

    Thanks for this eye opener.

    There is a another issue that is a mind bogger.
    Where the deductee is on cash basis and the deductor is on mercantile basis, it is a hopeless execrcise in getting credit for TDS in the deductee’s case.
    Can some light be thrown on this matter.
    DTC/NSDL are silent on this.
    Tax preparation software enables deductees to post the entire TDS amount and choose that part he wishes to claim credit in the year.

  9. Aban Sharma says:

    The Post Offices and banks simply refuse to issue TDS certificates. And, if at all, they issue not before December in the financial year, months after the last date of filing IT returns expires. They say that they are not bound by IT laws.

  10. C.Jyoti says:

    Almost all the Banks in India, UCO Bank being the leader, simply refuses to issue the statutory TDS certificates which the FD holders/tax payers are entitled to get under the law. The Nehru Place Branch of UCO Bank and some other Calcutta head quartered banks insult the account holders if they demand these certificates and never reply to letters and emails from them asking for these certificates. The Income Tax Act must have a specific provision stipulating a date by which all deductors must issue the TDS certificates and also a provision levying very stiff penalty on thje official in charge of the office/branch/company.

  11. CA Kunal Malpani says:

    No use. These people will not change unless and until they are made accountable and punished for being so negligent. Why not the department ever recover penalties from these people instead of troubling the honest tax payers who have to run from one to the other to get their rightful refunds. In many cases even after giving the 15G/15H forms or low or no deduction forms the TDS is deducted and the reply given who has the time to see all these papers. As long as it is some other persons money they don’t care but the moment it is about their money they will go on strike, blackmail the management, claim increased salaries without being responsible for anything.

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May 2024