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

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 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 (1)

1. Bank cannot play with customer's interest as per their wish. Complaint can be registered with Bank Ombudsman, if bank refuses to rectify their own mistake.

2. Bank has nothing to loose as they can adjust any extra TDS paid to department by adjusting the same in next quarter, by revising their first quarter return.

3. Customer should be asked and given chance to submit any documantory evidance to update bank records, if bank have insuffient mandate of their customer.

 


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