Pay 20% TDS For Your Fixed Deposit if PAN, Aadhaar Not Linked

If you are a fixed deposit investor who has not linked your PAN with your Aadhaar, causing your PAN to become inoperative, you will face an obstacle in submitting Form 15 G/H for your fixed deposit. This, in turn, will lead to your deposit being subjected to a higher TDS rate of 20 percent instead of the usual 10 percent.

Pay Extra TDS For Your Fixed Deposit if PAN, Aadhaar Not Linked

HDFC Bank’s Message if PAN, Aadhaar Not Linked

“If PAN is not linked with Aadhaar, such PAN will become inoperative w.e.f. 1st July 2023 and the customer will not be allowed to submit Form 15 G/H and higher TDS deduction will be applicable for inoperative PANs,” as written on HDFC Bank’s website.

If you earn interest of over Rs 40,000 (Rs 50,000 for senior citizens) in a financial year from fixed deposits, you will be subject to TDS (Tax Deducted at Source) on your FD investments.

To maintain the functionality of your PAN card, it is of utmost importance to link it with your Aadhaar before the deadline of June 30, 2023. Failing to carry out this task will result in the PAN card losing its interoperability, rendering it ineffective starting from July 1, 2023.

Under the provisions laid out in the Income-tax Act of 1961, it is obligatory for individuals who have been allocated a PAN on or before July 1, 2017, and are eligible to obtain an Aadhaar Number, to duly inform the designated authority before June 30, 2023. The notification procedure entails the payment of a designated fee in accordance with the prevailing regulations.

Also read:

You Cannot Do These 10 Financial Transactions With an Inoperative PAN Card

What Happens If You Book an FD Without PAN?

  • The rate of TDS (Tax Deducted at Source) will be increased to 20% from the previous rate of 10%.
  • The Income Tax department will not provide TDS credit.
  • TDS certificate issuance will not take place as per CBDT circular no: 03/11.
  • Exemption certificates such as Form 15G/H will no longer be valid, and non-compliance will result in a penal TDS application

Nevertheless, it is possible to reactivate the PAN within 30 days by notifying the designated authority about the Aadhaar linkage and paying a fee of Rs 1,000.

Find Your Daily Dose of NEWS and Insights - Follow ViralBake on WhatsApp and Telegram

Rishabh Sharma

Rishabh is an experienced content writer and editor, he is working for Viralbake to cover a diversified range of categories. His articles mainly focus on providing information, being a travel guide, educating others, and also making people aware of technology, after all, he is a technophile. When not writing he can be found gaming, watching movies, and travelling.

Related Articles

One Comment

  1. Good post. I learn something totally new and challenging on sites I stumbleupon everyday.

    It will always be useful to read through content
    from other writers and use a little something from their websites.

Back to top button

AdBlocker Detected

Please Disable Adblock To Proceed & Used This Website!