Tuesday 12 April 2016

Get Back your Income Tax Deducted at Source by Banks

Only yesterday a retired senior citizen visited Samadhan Kender to inform that the Bank had deducted 20% TDS from interest paid on his fixed deposits whereas he had duly submitted his PAN number to the Bank. 

When asked if he had taken any receipt from the Bank for having submitted his PAN, he answered in negative. Actually what happened ? The dealing clerk forgot to attache the PAN number in his customer ID and in the absence of PAN, the bank's finacle system deducted 20% TDS instead of normal TDS of 10%. Moreover the form 15-G submitted by him were also not accepted by the system in the absence of PAN Number.

The bank people rudely asked the senior citizen to get back the TDS from income tax department as they had no means to bring back the TDS already remitted to the Income Tax Department. The pensioner went to a learned Chartered Accountant to get back the TDS but the CA demanded huge fees. The pensioner felt cheated at the hands of his Banker, who forgot to add PAN number in his FD's with the Bank.

Our team at Samadhan Kender heard the whole story with patience and advised the old fellow to submit the PAN number and Form 15-G against proper receipt from the Bank so that he does not suffer again due to irresponsible attitude of the banker. We also advised that to get back the TDS, he will have to file IT Return for which he should not make hurry as before filing the IT Return we will have to check up his 26AS with TDS deducted at source. When our team members made a profile of the pensioner on Income Tax website we were astonished to find that TDS had been deducted in the previous years 2014-15 and 2013-14 also. We advised the hapless fellow that Tax pertaining to period prior to 31-03-2014 can not be claimed but TDS deducted during 2014-15 can be got refunded by filing IT return. On the request of the senior citizen, we  filed the IT return and assured him that all the TDS wrongly deducted by the Bank will land in his account as refund. He heaved a sigh of relief and thanked the Team at Samadhan Kender.

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