20% TDS deduction

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A retired individual experienced a sudden increase in TDS deduction from 10% to 20% on their fixed deposit after a bank merger. The bank admitted a software error where their PAN was not updated, leading to the higher deduction and missing Form 16A. With the ITR deadline approaching and a significant refund due, they are seeking advice on how to resolve the issue with the bank and what actions to take.

Neeraj

Neeraj (Querist)

24 July 2023 I am retired and was having a FD in syndicate bank. Which merged with Canara bank about 2-3 years back. In FY 21-22 Canara bank deducted TDS @ 10% and I got form 16A. But in FY 22-23 the same bank deducted TDS at 20% and there is no Form 16A.I realised this problem when checking form 26as, AIS ETC.
When I contacted bank about 10 days back they saw that in my account my PAN NO has not been updated. They accepted their software mistake which merged syndicate bank details with Canara bank software. Now they keep saying that our head office is going to rectify it. But last date of ITR filing is one week away and how do I file my ITR. What other action I can take towards bank.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 July 2023 What is your taxable income.

Neeraj

Neeraj (Querist)

24 July 2023 Taxable income is about 8.5 lacs. Income tax applicable about rs. 20000 and TDS deducted about Rs. 70000. So refund about 50000.This is including TDS DEDUCTED BY Canara bank at 20%.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

24 July 2023 Give a letter in writing to branch office and head office of the bank, they have correct it before 31st July other wise they have to bear the late filing fees of 5000. Legal action will be taken for non compliance.

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