Pan requirement for fd renewal

Tax queries 1039 views 3 replies

Ankur

252 Points Joined March 2011

Hello friends,

Please help to solve the following query on PAN requirement for FD renewal:

suppose X a person without PAN is having a joint FD of Rs 55000 with Y who has his PAN number but has not submitted the same to bank on opening of FD account. On FDR, X is written as first person and Y is the second person. Now bank is asking for PAN number of X for further renewal of FD. and Since X does not have his PAN he decides to give two copies of Form 60 to bank, ( One of Which will be sent to I.T. Deptt. as per bank).

Now in view of above my question is that if X being the first person in a joint FD gives his form 60 to bank, will Y be required to give his PAN number to bank?

and Second question is that will I.T.Deptt take any action against Y, on X's filling form 60 for an FD in which Y is Jointly involved ( although Y is the second person named in FD)

please help me

thanking in anticipation.

Replies (3)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

for any transaction over 49999 pan is mandatory in bank,

a joint holder is nothing for FD, unless the mandate is given for credit of interest and other benefits like maturity etc to joint holder ( given at the time of opening the FD with bank )

as the 1st holder is not having a PAN, interest income will not exceed 10000 this year ( assuming that this is only FD of himself with the bank ), no issue of form 60/61, as its mere declaration, but in case if any TDS incident happens, then the issue will get complicated as bank will deduct 20% flat and will not issue form 16A also.

at that point if the FD holder declare that they had pan and blah blah, then it would take critical shape, of misdeclaration.