My mom is a senior citizen. She had made mounted deposits with varied banks. She had submitted a 15G kind additionally for no deduction of tax at supply however the financial institution has deducted tax @ 20% on curiosity as she doesn’t have PAN. The financial institution has suggested us to file her ITR to assert the refund. What ought to we do to get the refund? Can she file her revenue tax return with no PAN card?
Answer: As per Section 206AA since your mom doesn’t have a PAN quantity, the financial institution is obliged to deduct tax @ 20% on the curiosity even when your mom has submitted kind No.15G. Since your mom is a senior citizen she is required to submit kind No. 15H and never 15G. A senior citizen who’s a resident can solely submit from No. 15 H if the entire tax on his revenue is nil.
For claiming the refund of tax already deducted by the financial institution it’s essential to file her revenue tax return (ITR). Please notice, that your mom can’t file her ITR in case she doesn’t have a PAN. Since your mom doesn’t have a PAN, to start with, it’s a must to apply for a PAN.
However, in case she has an Aadhaar Number, the identical can be utilized instead of PAN. She can submit the identical to the financial institution with a request to revise the TDS return submitted by them to say her PAN/Aadhaar quantity in opposition to her identify. Please notice that until the financial institution carries out this correction, your mom is not going to get credit score for the tax deducted by the financial institution. Moreover, even when your mom submits from No. 15H she has to furnish her PAN/Aadhaar, failing which the financial institution will once more deduct tax @ 20% on the entire of the curiosity. Please notice that it isn’t obligatory to file your revenue tax return simply because you’ve a PAN until you fulfill the fundamental situations requiring one to file his ITR.
Balwant Jain is a tax and funding professional and will be reached at [email protected] and @jainbalwant on his X deal with.
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Updated: 19 Sep 2023, 12:43 PM IST
