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  • Category: Tax Planning

    How to get refund of TDS cut at the Bank end?

    Looking out for information about refund of TDS? Find responses from experts on this page.

    One of my friend's mother has Rs. 8000 per month income and she is not entitled to pay any income tax. She has fixed deposit in two banks namely Bank of Baroda and State bank of India. In Bank of Baroda, total amount paid (credit) was Rs. 5931 and in SBI, total amount paid (credit) was Rs. 128.0
    Now, for Total TDS deposited for BoB : Rs 1191 and SBI : Rs 13.00
    I want to now understand how to claim the refund of TDS cut for both bank? When and how to file income tax return? Expert: do give complete details.
  • #136380
    On subssion of 15 G or 15 H forms , as the case may be the banks don't cut TDS. Form 15H is for senior citizens i.e. those who are 60 years or older, whereas the form 15G is for everybody else. However in case the TDS is already deducted, then the first action the author should do is to contact the bank and submit form 15 G or 15 H, for the current financial year.
    As far as I can understand, the bank will not be able to refund the TDS amunt once deducted. The refund can be claimed only by submitting incme tax return and claiming refund of the TDS amount from the income tax department. TDS certificate and interest certificate should be obtained from the bank for reference during preparing income tax return.
    The last date of filing income tax return is generally July 31, but sometimes it was extended also during previous years.

    Let us encourage each other in sharing knowledge.

  • #136400
    The amount deducted by bank for TDS is never returned. And your only option in this case is add the amount in the income tax return and get the deduction. This helps in reducing your tax returns too. Also do note the dates from the banks under which you have deduction. By deduction i am referring to the quarterly TDS that is being deducted from the account if you have term deposit. In that case the best option is to get the TDS certificate and send it to CA. Or use it on your own for self filing the tax and deduct the amount. If the TDS is related to the term deposit or any other similar scheme, then you're allowed to have to deduction. Contact your CA so that you can get the idea on how to do the deduction for your TDS.

  • #136405
    If your friend's mother had submitted the for 15G or15H to the bank before TDS was deducted, then the bank should not have deducted the amount at all. You may enquire with the bank if they had remitted the money to the IT department and also filed the detailed list of deductees and their PAN number.
    If that two are over, then the bank cannot reverse the deduction. However, if the TDS s not remitted to the IT and the list of deductees PAN is also not given then the bank can make corrections and reverse and re-credit the TDS recovered from the account.
    From the TDS amount mentioned above, what I can make out is the person has not submitted PAN number to Bank of Baroda for FD and hence they have deducted 20 per cent TDS. It also means that the same will not get accounted to the Income Tax account of your friend's mother. It will not be reflected in 26AS.
    Now the solution is :
    1. Submit PAN card copy and Form 15G/15 H as the case may be to Bank of Baroda. That may prevent further deduction or restrict deduction to ten per cent.
    2. Submit Form 15G/H and PAN card copy to SBI.
    3. View 26 AS and ensure the TDS so far deducted is reflected there. If not, follow up with the bank to ensure that.
    4. File IT return on or before the due date after end of the financial year and seek refund of the amount deducted.

    But before that discus with the banks and they may get some advice from IT department to help you.

  • #137137
    Basing on the PAN card reference in any bank TDS will be deducted. If the PAN card is not provided 20% TDS will be deducted if the total interest earning exceeds Rs 10000pm. In case PAN card is provided and updated in the customers profile 10% will be deducted. If form 15G for customers less than 60 years or 15H for customers above 60 years is provided in the month of April every year until the deposits are with the bank or the form has to be submitted for each fresh deposit then TDS will not be deducted. But if a depositor is already tax payer then there is no need for him to submit 15G or 15H form and only he has to furnish his PAN card. In case in particular month TDS deducted before submission of 15H or 15G form within that month if the forms are provided the bank will definitely refund the amount deducted. But if it is submitted subsequent month there is no refund.
    To get the refund of Tax deducted quarterly every bank will file ETDS and subsequent to that Form 16 will be generated and the depositor can obtain the form and accordingly file his return and get the refund in case he is eligible.

  • #144253
    There are two ways to refund our tax deducted at source in case of bank deduct TDS:
    1. By filling the form 15G or form 15H. (But before the deduction of tax by bank) i.e. in beginning of financial year tax payer/person must fill above mentioned form with the bank.
    2.But after deduction of TDS, in this case you can claim refund of your TDS by way to income tax return filling with the department.

    In this case the person must file his return on or before the due date i.e. 31st July of financial year for getting/claim refund of TDS.

    However the person before filling the return of income with department can make application before bank for refund the TDS. But it would be possible only in that case when bank only makes TDS list, TDS amount and tax payer name and not submitted with department.

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