Corrections in tds deduction at source by bank u/s 194 a

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S S Dahale

Agri and business

439 Points Joined December 2015

It has been observed that , as IT department has made it mandatory for all co-operative banks , to deduct TDS at source (quarter wise) on the interest generated on FD, RD accounts of the persons, as this being 1 st year to implement so.. many banks and its depositors , have caused errors in the same , like despite of being having PAN No..... not furishing of the same with the bank ,non uploading / wrongly uploading of PAN details by the bank etc.. so it has been seen , honest TAX payers are suffering, of deduction of 20% as TDS at source , (though, it ought to have 10%) is there is any way for this agony,for banks through CA of the bank , or that DEPOSITOR to get TDS adjusted to the CORRECT one in 26 AS at TRACES , ( as most likely if that FD is long duration) he is likely to loose INTEREST ON INTEREST of that OVER SIZED TDS DEDUCTION ( at source)

Replies (4)

Guest

If you provide th PAN , then the TDS rate would be 10% on the appicable interest , if the bankers are making error while euploading your PAN number , you can request them for correction , there is a possibility to revise n number of times.

S S Dahale

Agri and business

439 Points Joined December 2015

Thanks , banks ( through there CA ) are ready and willing to get TDS uploaded revised ( qtr wise )

but there problem is that TAX so credited as TDS ( at source -qtr wise ) can not be altered ,

let us assume a CO-OP BANK with 18 branches has Paid TDS u /s 194 A for qttr 2 for AY2016-17,as Rs 9,14,500

let us say a depositors name as B , C , D having PAN Nos.are having REAL liabilty of qtr wise TDS Rs.35,000 ,i.e.(10%) on the interest generated of Rs.3,50,000,

then there are depostors with name as L, M, N having PAN nos. are having REAL liabilty of qtr wise TDS Rs.15,000 ,i.e.(10%) on the interest generated of Rs.150000

but CO OP bank has wrongly DEDUCTED TDS at 20% on such of

(Rs .70,000 and Rs30,000) and PAID to Income tax ,

Now CO-OP bank ( and its CA) SAYS , they can REVISE TDS returns , but Neither can apply for REFUND on thir own , even says , a depositor also can not ask directly -or communicate with tax authority , but can CLAIM a FEFUND aftEr COMPLETION of AY (of excess amount so paid by co-op bank , at NO fault of DEPOSITORS ) after filling of ITR , this is a real havoc for honest tax PAYER , is there any AMICABLE WAY to GET it NULLIFIED as other than BANKS / its CA are mentioning.

babugr

dgm

515 Points Joined February 2014

Unfortunately this is the way some banks work which include PSU banks also, I have observed corrections / modifications in TDS even in the month Jun,2016 for the quarter ended 31st March, which leaves no regular tax payer can file a return till July, there exists a clear inconsistency in IT department seeking faster ITR filing and processing while banks or other institutions are allowed to deposit TDS in next quarter. God help our systems. deduction of 20% TDS is normally not done if there is a PAN submitted.

mohammad

article assistant

123 Points Joined March 2016

the person should deposit there PAN with the bank for this 20% to 10% TDS and the assessee can't claim for 20% TDS amount while furnishing the ITR. And if after depositing the PAN and TDS is still deducting even though the interest doesn't crosses the threshold limit. then one can contact with the deductor.. if the 26AS does not shoe the correct TDS then u can contact to the deductor to upload that...