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Rahul Gupta (Chartered Accountant)     18 October 2011

How to avail tax credit for TDS @ 20%

I want to clarify the situtation that in case i haven't furnished the PAN Details to Bank due to mistake and in return Bank deducts the TDS @ 20%. Suppose there is total interest of42000/- Earned during the year. Bank is liable to deduct TDS, due to non availability of PAN Detail it deducts TDS @ 20% i.e.8400/- (42000 x 20%).


I am not aware about this but brought to my knowledge only after the closure of F.y. when i approached the bank to provide Form 16A for IT Purposes. I found that TDS @ 20% is deducted. So its obvious that i won't get any Tax Credit as per Form 26AS Tax Statement.


According to that, i won't get the refund.

So, i want to know that WHAT WILL I DO IN ORDER TO AVAIL TAX CREDIT OF TDS @ 20%


Should i approach Bank to file revised returns or anything else. I think if i approach the bank than the responsible CA will file the return but they can't assure me that i will get Credit. What are the alternatives and correct procedure.


Advise & Suggestions Please

 10 Replies

Arvind Sharma

Arvind Sharma (ACA)     18 October 2011

in all case, you hav to file return in order to claim tds credit.... And it is immaterial whether your credit is there in 26As or not, if you have dat TDS certificate, than you entitled to refund... It may be bank mistake or technical misatke on nsdl side that your credit is not showing in 26AS... So if tds is of FY 2010-11 and you dont come under tax01ble person, den you can file itr pto 3108t Mar04h 12 (P0205 mst 080808


Once the bank files rectification return the amount automatically comes into your account.

That is assured. Any other interpretationas are purely imaginary.  I do not think you will get any convincing answer for imaginary ?s.

Arvind Sharma

Arvind Sharma (ACA)     18 October 2011

Its 31st March..., and for filling itr PAN is must....
CA Parag Jani

CA Parag Jani (BCom CA DISA Forensic Auditor)     18 October 2011

you should approach bank & ask them to revise the return with your correct PAN! its the best way to do! Such technical difficulties do arise since many bank a/c holders are not aware of these provisions! such problems will reduce gradually!
Girish Tigadikar

Girish Tigadikar (Service)     19 October 2011

In my opinion the bank will not agree to revise the return, because once the return is file the bank has to transfer the amount of TDS collected to the Treasury, once transferred bank will never get any refunds. Hence it better to ask the bank to give a letter to that effect of TDS Deduction from you at 20% and submit the same at the time of assessment.


Nitin (Audit and Accounts Executive)     19 October 2011

File your proper income tax return with showing your tax refund. At the time of assessment your assessing offer will ask you for form 16A the show your form 16A to assessing offer.

Shailesh Kripal

Shailesh Kripal (Music Industry : Copyright)     20 October 2011

Bank has already file e-tds along with your data too saying TDS is 20% and Reason being PAN NOT SUBMITTED BY ASSESSEE. You check with NSDL and u can find ur account credited with TDS @ 20%. If not, approach back, as it is their responsibility to file e tds for all TDS deductions.


Manish (Accountant)     21 October 2011

Bank (or any deductor) has deduct TDS @ 20% when PAN of deductee is not available.  If Bank has deducted 20% TDS, it means your PAN is not known by them at the time of deducting TDS.  Therefore this 20% TDS are not credited in your 26AS because Form 26AS is generated by PAN data.


Claim amount of TDS (20% as deducted by Bank) in your ITR for the year and also approach to Bank to file their Revised TDS Return with your PAN.  Once their Revised TDS Return is accepted by NSDL, the amount of TDS (20%) will be credited in your Form 26AS and amount will be reached to you by way of Income Tax Refund (as computed in your ITR for the period).

If any TDS deducted @ 20% (due to un-availablity of PAN) and TDS deposited/TDS return filed by deductor, the TDS amount will be refunded only by Income Tax Department by way of Tax Refund as claimed by the Assessee by his/her Income Tax Return.

Jinesh Bansal

Jinesh Bansal (Manager-Accounts)     25 October 2011

First , bank has to revise the TDS return.After that you /income tax deptt can check it from 26 AS form. If your name appear in this form, then you can get tax credit of 20% TDS. In this Income tax deptt will refund the amount as per your Income tax Return.

Jinesh bansal 


SACHIN KOLI (Accountant)     31 October 2011

I don't think that bank will file revise their tds return for you.  But still take a chance, approach to the Bank to file their Revised TDS Return with your PAN.  Once their Revised TDS Return is accepted by NSDL, the amount of TDS (20%) will be credited in your Form 26AS and amount will be reached to you by way of Income Tax Refund (as computed in your ITR for the period).

Once the TDS is deducted @ 20% (due to un-availablity of PAN) the claim can not be taken in any way.  The deductor has to file revise return mentioning your PAN No. in the return then you can claim refund otherwise not.

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