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Requirement of pan for fixed deposit

Minna (CA Student) (25 Points)

19 September 2014

A person want to put a fixed deposit of Rs.80000/- having maturity period of 3 years with a nationlised bank @ 8.75% per anum on cumulative basis. The interest for FY 2014-15 will be below Rs.10000/-. Is she equired to furnish PAN details to the bank while making the deposit? It shall be noted that she does not have any other source of income and also does not have a PAN card. Will TDS be deducted at 20% if PAN card details are not given even if the interest is below Rs.10000/-?

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Deepak Gupta (CA Student) (15922 Points)
Replied 19 September 2014

Originally posted by : Minna
	A person want to put a fixed deposit of Rs.80000/- having maturity period of 3 years with a nationlised bank @ 8.75% per anum on cumulative basis. The interest for FY 2014-15 will be below Rs.10000/-. Is she equired to furnish PAN details to the bank while making the deposit? It shall be noted that she does not have any other source of income and also does not have a PAN card. Will TDS be deducted at 20% if PAN card details are not given even if the interest is below Rs.10000/-?

- Quoting of PAN is mandatory while making a fixed deposit exceeding Rs. 50,000/- [Rule 114B(c) of the Income-tax Rules, 1962].
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- If any person who has not been allotted a PAN, shall make a declaration in Form No. 60. [Download]
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- No, TDS will not be deducted in such a case.

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Minna (CA Student) (25 Points)
Replied 19 September 2014

What if she break it into 2 FDs of RS.50000/- and Rs.30000/- and the deposit is done on 2 separate days? is Form 60 still required?

Deepak Gupta (CA Student) (15922 Points)
Replied 20 September 2014

The above rule applies, if the amount involved on each occasion exceeds Rs. 50,000/-.

Appendix II of the Finance Act 2006, An analysis of relevant rules of Income-Tax Rules.
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"3.1c Fixed deposits in banks - Transaction involving time deposits (i.e., fixed deposits) in any bank (nationalised banks, scheduled banks, co-operative banks, etc.), are next specified, if the amount involved on each occasion exceeds Rs. 50,000. If a minor having no taxable income desires to open such an account, he must quote PAN of his father or mother or guardian, as the case may be in the document covering the transaction (i.e., application for opening account). If the parent or a guardian does not have a PAN, declaration in Form No. 60 can be filed. However, if the father does not have a PAN but the mother has a PAN, declaration in Form No. 60 cannot be filed. The PAN of the mother must be quoted. The same will apply to cases where the father has a PAN but not the mother. The PAN of the father must be quoted."

Ileana Lyardson (Student MBA) (26 Points)
Replied 04 February 2015

Yes, quoting PAN no. is mandatory on all deposits exceeding Rs 50,000. If a person doesn’t have a PAN no, he or she may fill up a form 60 available with the bank. However, the bank will not deduct TDS if the annual interest earned is less than Rs 10,000.