Tds deduction on agriculture money of deceased person.

TDS / TCS 582 views 5 replies

kuldeep

Software engg.

30 Points Posted on 20 August 2011

Greeting of the day.

I have some Fixed deposite in bank money comes from the sales of aggriculture land on my father name. My father is expired now and while transfering the FD to nominee name bank is deducting the 20% of interest earned from those FD's. My faher was not having the PAN card when he was alive. Can Nominee apply the PAN card on my father behalf and file the ITR on his behalf can save the TDS amount. Please suggest the possible procedure to save that TDS amount while will not be deducted if he was alive or only 10% if he was having the PAN card before.

Thanks in advance

Replies (5)

Devendra

Chartered Accountant

4780 Points Posted on 20 August 2011

You being a nominee to the Fixed deposit can submit your PAN to the Bank and tell them to deduct TDS @ 10% u/s 194A. You can obtain the TDS Certificate from the Bank and claim the TDS in your Income Tax Return.

Regards,

Devendra K

kuldeep

Software engg.

30 Points Posted on 21 August 2011

Hi Devendra,

Thanks a lot for reply. I am not good in money matters. Actually bank is refusing to accept the Nominee PAN card. Can you please let me know the any section no in which it is written that nominee pan can be accept for a deceased person ITR/TDS. So I can force them to accept it.

Thanks in advance.

Kuldeep

CA Saiyum khan

Practicing CA

690 Points Posted on 21 August 2011

The name of the FD holder has to be transferred in the name of nominee for the balance period and accordingly the TDS provision is applicable. It is suggested to approach bankers strongly with all the relevant documents and get the issue sort out in your favor.

kuldeep

Software engg.

30 Points Posted on 21 August 2011

Thanks Saiyad, By your suggested procedure we can save the TDS after the FD is transfered to Nominee. Is there any provision to save the TDS that bank is going to deduct for earlier period.

CA Saiyum khan

Practicing CA

690 Points Posted on 21 August 2011

Originally posted by : kuldeep
	Thanks Saiyad, By your suggested procedure we can save the TDS after the FD is transfered to Nominee. Is there any provision to save the TDS that bank is going to deduct for earlier period.

As you informed your father is not having PAN Card. The solution is to get the PAN card in his name of your father and submit to the banks for getting TDS certificate in his name. This all depends upon how much TDS has been deducted by the bank.