TDS DEDUCTED BY BANKS
TDS deducted by various banks, on Interest paid to the depositors, is not being advised by many banks to the depositors on real time basis. Further, their online banking also does not have any option to download details of TDS deducted by them from time to time.
The challenge faced by the depositors is that many a times, TDS deducted by banks is not reported to Income Tax deptt. and therefore, doesn't find place in form 26AS. Depositors land up paying tax in those cases also where TDS was already deducted by the bank/s. This is happening mainly in cases of Fixed Deposits and Recurring Deposits, where the interest is compounded but not actually paid. Its merely an internal accounting entry and the client doesn't come to know about the date and amount of TDS.
Banks are allowed to report the details of TDS within 45 days. Thus, TDS deducted by the banks in the last quarter of the financial year, gets reflected in 26AS by 15th May every year. The poor depositor doesn't know how much TDS has been deducted and how much income tax he is supposed to pay before the close of Financial Year. Most of the times, he pays double and then waits for a refund.
I request, thru this forum, that it should be made MANDATORY for the banks to :
1. Advise TDS with details thru SMS and/or emails, letters on a real time basis to the clients...giving full details of account number, interest paid, TDS deducted, date of entry passed.
2. Banks' online banking facility should have option to check the TDS details, which should be updated on real time basis, i.e. as and when TDS deducted.
Hope my suggestion will be understood and implemented soon. more
The challenge faced by the depositors is that many a times, TDS deducted by banks is not reported to Income Tax deptt. and therefore, doesn't find place in form 26AS. Depositors land up paying tax in those cases also where TDS was already deducted by the bank/s. This is happening mainly in cases of Fixed Deposits and Recurring Deposits, where the interest is compounded but not actually paid. Its merely an internal accounting entry and the client doesn't come to know about the date and amount of TDS.
Banks are allowed to report the details of TDS within 45 days. Thus, TDS deducted by the banks in the last quarter of the financial year, gets reflected in 26AS by 15th May every year. The poor depositor doesn't know how much TDS has been deducted and how much income tax he is supposed to pay before the close of Financial Year. Most of the times, he pays double and then waits for a refund.
I request, thru this forum, that it should be made MANDATORY for the banks to :
1. Advise TDS with details thru SMS and/or emails, letters on a real time basis to the clients...giving full details of account number, interest paid, TDS deducted, date of entry passed.
2. Banks' online banking facility should have option to check the TDS details, which should be updated on real time basis, i.e. as and when TDS deducted.
Hope my suggestion will be understood and implemented soon. more
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The Banks are guilty for the delay in submitting Form 16. This results in AS 26 not being updated in time This Is the document which is accepted by Income Tax authority In FY 2016 17 the Banks goofed up causing delay by 2 months Min of Fin / RBI must penalise such Bankers with fine to be paid by the concerned Bank Officials including Zonal Heads from their personal salary and not from Bank Funds JAGO MIN OF FINANCE / RBI more
Aug 15
The Form 16A for TDS is sent by the banks very late , for example for the last quarter of FY 16-17, the TDS form was delivered only in June 2017. Which is not correct. The banks should be instructed to send the form of TDS in the same month regularly. more
Aug 15
There is no prior information provided by banks, the same issue in my experience on fixed deposit in my father name (senior citizen), the income from fixed deposit for a financial year not reached the limit of income tax slab rate, even TDS deducted!!!. For our inquiry about this with the bank, the bank advises to income tax filing. After filing of income tax the auditor confirmed 75% only claimable from the total deduction. Don't we know how it will be? more
Aug 14
TDS is deducted on all FD's unless you provide Form 15H and if your total income is below taxable limit, you get full refund of tax deducted. This is a fact and there is no such rule that only 75% is claimable as you wrote. Please check and then report correctly. more
Aug 15
Bank has to deduct tax at source if the interest payable on a deposit or deposits in one branch exceeds 10000 rupees in one financial year. Unless a declaration in form 15H in case of senior citizens is filed with bank, tax will be deducted.
It is not clear what you meant by the last line. So, can't comment on that. more
It is not clear what you meant by the last line. So, can't comment on that. more
Aug 14
TDS on Interest on FDs with the banks is mandatorily deducted and deposited by all banks with the govt. The same is also reflected in form 26AS. However interest on saving bank is not taxed at source. The same is to be added by individual and tax paid in the month of May before filing returns in July. more
Aug 14
Hi, 8 years back, a bank has given TDS cum Interest Certificate where it is mentioned that the TDS deducted is, say, Rs 2000. But the bank paid only Rs 800 to the IT Department (confirmed through Form 26AS downloaded from online recently). IT returns were, at that time, submitted based on the TDS cum Interest Certificate of the bank, i.e., Rs 2000. After 8 years, a IT notice has been received to pay the remaining amount along with penalty and interest which comes to more than Rs 4000, in addition to the Rs 800 already paid, all because of wrong statement given by the bank. Can someone please advise the course of action to be taken. Thank You. more
May 30
I have gone through this hell. For several years I kept on writing to banks with zero result and ultimately reconciled with the situation. Banks can do whatever they like.They are accountable to none. I wrote to ITax dept too but no help. more
Jun 09
