Beruflich Dokumente
Kultur Dokumente
4. Fee and Penalty for delay in furnishing TDS statement and incorrect
information in TDS statement for FY 2012-13.
Nature of Penalty
Amount of Penalty
Fee for late furnishing of TDS Increased from Rs. 100 per day to Rs.
statement
200 per day.
Penalty for not furnishing TDS Ranging
from
Rs.
10,000
to
statement within the prescribed Rs.1,00,000
time.
Penalty for furnishing incorrect Ranging
from
Rs.10,000
to
statement
Rs.1,00,000
Updated guidelines for TDS other than salary:A. TDS on Interest other than Interest on securities- Section 194A
I- GENERAL:
Bank responsible for paying interest on term deposit to a resident is
required to deduct tax at source. The expression term deposit has been
defined to mean deposits, excluding recurring deposits, repayable on the
expiry of the fixed periods.
TDS rate is 10%. If the deductee does not furnish his PAN to the Bank, tax
will be deducted (with effect from 01.04.2010) at the rate of 20%.
TDS is required to be deducted either at the time of credit of such income
to the payees account or at the time of payment, whichever is earlier. TDS
is required to be deducted even if credited to Interest Payable/Suspense
A/c.
In case of term deposits with banks, no tax is required to be deducted up
to an aggregate interest of Rs.10,000/- in a financial year.
No tax is required to be deducted in case of interest paid/credited to any
banking company, co-operative bank, public financial institutions, LIC, UTI,
an insurance company or a co-operative society carrying on the business of
insurance or notified institutions.
II- Form 15 G/15 H:
According to Sec 197A of Income Tax Act, 1961, the Bank is not required to
deduct tax on interest paid to individuals or a person (not being a company
or a firm) if such customer furnishes to the Bank a declaration in prescribed
Form No. 15G /15H as applicable.
Declaration of Form 15G can be submitted by a individual or a person (not
being a company or a firm) who is of less than 60 years (w.e.f 1st July
2012) of age and his/her total income should not exceed Rs.2,00,000 for
FY 2012-13. In case the interest paid by the Bank to such customer during
a financial year exceeds Rs.2,00,000 then TDS has to be deducted by the
Bank on the entire amount of interest paid.
Declaration in Form No. 15H can be submitted by a resident individual who
is of the age of 60 years or more (w.e.f 1st July 2012) claiming interest
income without deduction of tax.
Form 15G/15H can be accepted from account holders who are having
deposits in our Bank and earn interest income. It cannot be accepted for
any other income such as salary and / or pension.
Form 15G/15H is to be obtained at the beginning of each financial year (1st
April) for existing accounts. Form 15G/15H has to be obtained for all new
accounts wherever applicable as and when account is opened.
No exemption is given against Form 15G / 15H to non-resident customers.
Form 15H can be accepted from the senior citizens whose tax liability is nil
even though their estimated total income exceeds the exempted limit of
Rs.2,50,000. Therefore Form 15H can be obtained even if the Interest
payment crosses Rs.2,50,000/-.
The declaration in Form 15G/ 15H is required to be obtained in duplicate
from the customer (payee).
One copy of the declaration is required to be submitted to the
Commissioner of Income Tax of the concerned area on or before 7th day of
the next following month in which declaration is made.
Immediately on receipt of Form 15G / 15H, enter the status in the accounts
of the customer in CBS system stating the fact that Form 15G/15H is
received in this account. This will ensure non-deduction of tax at source.
Branch should ensure that in Form 15G/15H status of residency
Resident/Non Resident is clearly mentioned, all columns are filled in
properly, non-relevant portion is striked off.
The Branch should ensure that the customer has mentioned his/her PAN in
the Form 15G/15H.
III-Non- deduction OR Lower deduction of TDS
The Bank may not deduct TDS or deduct TDS at a lower rate if a customer
submits a certificate issued by the Assessing Officer of its jurisdiction under
Sec 197 (1) for nil deduction or lower deduction. Branch should ensure the
authenticity & validity of the certificate furnished by the customer and
necessary changes in the CBS system may be made for the period mentioned
in the certificate.
IV-TDS on NRE Deposits:
Interest earned on Non Resident External (NRE) accounts and Foreign
Currency Non Resident (FCNR) accounts are tax free in India. Hence, there
would be no TDS. Provided that such individual is a person resident outside
India as defined in clause (q) of section 2 of the said Act or is a person who
has been permitted by the Reserve Bank of India to maintain the aforesaid
Account.
V-TDS on NRO Deposits under Sec 195
Income Tax rates will be as per Double Taxation Avoidance Agreement
(DTAA) agreed between India and various countries. The updated list of
DTAA countries and prevalent concessional tax rates is given as per
Annexure - 1
In order to extend the benefit of concessional rate of withholding tax on NRO
deposits, following documents are required to be obtained from the NRI
customer
CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,
Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 3 of 13
C.
Exemptions
Aggregate payment during the
Financial Year does not exceed Rs
5,000/-
Exemptions
When aggregate payments
to the payee during a
financial year does not
exceed Rs 1,80,000/-.
1. Deduction of Tax under section 194A of Income Tax Act, 1961 has to be
made on the deposit kept in the name of abovementioned persons.
2.There may be situation where in the course of the proceedings before
Supreme Court/ High Court/ any other court or tribunal (hereinafter the
court), one or more than one litigant (hereinafter the depositor) is
directed by the court that a specified amount (hereinafter deposit) be
deposited in the bank either directly or through the court in order to protect
the interest of litigants. Such deposits (usually time deposits) are kept in
the bank in the names of Registrar/Prothonotary and Senior Master or any
other name as per the order of the court. Tax is to be deducted on the
interest periodically accruing on such deposits/ time deposits and TDS
certificate is to be issued in Form 16A.
3. It has been clarified by the IT Department that:
i. where one or more than one litigant is directed by the court that a
specified amount be deposited in the bank directly or through the
court, the bank shall in accordance with the provisions of the IT Act,
deduct tax at source on the interest accruing on the above mentioned
deposit(s) as per existing procedure and at the rates in force. The
certificate of deduction of tax shall be issued by the bank in the
name of the depositor. If more than one person has been directed
to deposit any specified amount, the amount of TDS shall be
corresponding to each such depositor for the portion of interest accrued
in its respective share in the total amount deposited and TDS
certificates shall be accordingly issued by the bank.
ii. At the time of making deposit of the amount ordered by the court,
the depositor(s) shall submit a prescribed declaration with the court
for record purpose and to facilitate the administration of TDS. The
Registrar/Prothonotary and Senior Master or any person authorized
by the court will pass the information furnished therein to the bank
concerned for TDS properly in the name of the depositor(s) in
accordance with the provisions of the Act.
iii. Some of the instances covered by this circular are:
a. In the course of appellate proceedings, the court directs an
insurance company (the depositor) to deposit a part of
compensation awarded by Motor Accident Claims Tribunal. This
amount is deposited as Time Deposit in a bank in such name as per
the directions of the court, the credit of TDS on interest accruing on
such deposit will be allowed to the Insurance Company which has
made the said deposit.
b. The Court while deciding the cases of land compensation directs the
authority concerned (liable for making payment of compensation) to
deposit any sum in time deposit in any bank, the TDS on time
deposit shall be in the name of the authority making deposit, if such
authority is an entity liable for charge to Income Tax on its income.
In case the deposit in the bank is by Central or State Government
no tax will be deducted.
CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,
Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 7 of 13
G.
PERIODICITY
(2)
Annual
16A
Quarterly
DUE DATE
(3)
By 31st May of the Financial Year
immediately following the financial year in
which the income was paid and the tax
deducted.
Within 15 days from the due date for
furnishing the statement of tax deducted at
source under Rule 31 A
Form No.
Time Limit
24Q
27A
26Q
27A
Payment to Quarterly
Nonresident
27Q
27A
The branches at the time of filing the statement of tax deducted with NSDL
should ensure to mention properly:
i. Tax Deduction Account Number (TAN) in the statement.
ii. Permanent Account Number (PAN) in the statement.
iii. PAN of all deductees. Where PAN of the deductee is not available
Branch/Office should not mention the PAN of the Bank in any
case and report the same as PAN not available.
iv. Where 15G/15H is submitted and no tax is deducted, such transactions
to be reported in quarterly statement of Tax i.e. Form No. 26Q (Return)
with appropriate flag (flag B) as provided in the return.
v. Particulars of tax paid to the Central Government including Book
Identification Number or Challan Identification Number as the case may
be.
vi. Branch/Office to ensure the timely and correct filing of quarterly return.
Fee and penalty has been introduced w.e.f 01st July 2012 for not
furnishing TDS statement within prescribed time and for furnishing
incorrect information in the TDS statement.
Nature of Penalty
Fee for late furnishing of TDS
statement
Penalty for not furnishing TDS
statement within the prescribed
time.
Penalty for furnishing incorrect
statement
Amount of Penalty
Increased from Rs. 100 per day to Rs.
200 per day.
Ranging
from
Rs.
10,000
to
Rs.1,00,000
Ranging
from
Rs.1,00,000
Rs.10,000
to
I.
The provisions of Section 139A (relating to furnishing of PAN) shall not apply
to the following class or classes of persons, namely:
1. A person who has agricultural income and is not in receipt of any other
income chargeable to income tax [such person shall make a declaration
in Form No.61 in respect of transactions referred above].
2. Non- Residents
3. The Central Government, State Government and Consular Officers in
transactions where they are payers.
The declaration in this form must be made on each occasion on which any of
the specified transactions are entered into, and handed over to the branch.
Branch should ensure that proof of address is given through one of the
specified documents mentioned in the form.
The form should be received in duplicate and a copy of the same should be
forwarded to the Commissioner of Income Tax (Central Information Branch)
having territorial jurisdiction over the area in which the transaction is
entered, in two instalments as mentioned below:
Particulars
Due Date
Forms received from April 1 to By October 31
September 30
Forms received from October 1 to By April 30
March 31
J.
Summary
Branches / offices are advised to go through important aspects as mentioned
above. All the Regional offices are requested to guide the branches, if any
required, on the above guidelines.
Rates of TDS have been summarised in Annexure 4 for ready reference
of Branches / Offices.
Based on repetitive queries received from various branches/offices we have
compiled Frequently Asked Questions (FAQ) and Answers as mentioned
in Annexure -5 to enable the branches / offices to address the customers
common queries. We trust that the FAQ will be beneficial to the
branches/offices.
For any other queries, the Regional offices, may forward the branchs query to
Corporate Taxation Department at tax.bcc@bankofbaroda.com or call us at
(022) 66985288 for further guidance.
Yours faithfully,
(V. K. Gupta)
GENERAL MANAGER
(CORPORATE A/Cs & TAXATION AND CFO)
Annexure 1.
Withholding Tax Rates
[Tax rates applicable in India under ADT Agreement]
Country
Tax rate
Interest
Right of
State to
tax
Royalty
Tax rate
Right of
State to
tax
Tax rate
Tax
rate
Armenia
Both
10%
Both
10%
Both
10%
Both
10%
Australia
Both
15%
Both
15%
Both
[Note 3]
Both
[Note
3]
Austria
Both
10%
Both
10%
Both
10%
Both
10%
Bangladesh
Both
Both
10% [Note 2]
Both
10%
Belarus
Both
Both
10% [Note 2]
Both
15%
Both
15%
Belgium
Both
15%
Both
15% (10%
granted by
bank)
Both
10%
Both
10%
Botswana
Both
Both
10%
Both
10%
Both
10%
Brazil
Both
15%
Both
15% [Note 2]
Both
No
provision
if
a
No separate
provision
separate
Right of
State to
tax
Tax rate
Interest
Right of
State to
tax
Royalty
Tax
rate
Right of
State to
tax
Tax rate
Tax
rate
Bulgaria
Both
15%
Both
15%
[Note
2]
Both
Both
20%
Canada
Both
Both
15%
[Note
2]
Both
10%-20%
Both
10%20%
China
Both
10%
Both
10%
[Note
2]
Both
10%
Both
10%
Cyprus
Both
Both
10%
[Note
2]
Both
15%
Both
10%
Czeck
Republic
Both
10%
Both
10%
[Note
2]
Both
10%
Both
10%
Country
Right of
State to
tax
Tax rate
Interest
Right of
State to
tax
Tax rate
Royalty
Right of
State to tax
Tax rate
Right of State
to tax
Tax rate
Denmark
Both
Both
10% if loan is
granted by bank;
15% for others
[Note 2]
Both
20%
Both
20%
Germany
Both
10%
Both
10% [Note 2]
Both
10%
Both
10%
Georgia
Both
10%
Both
10%
Both
10%
Both
10%
Finland
Both
10%
Both
10% [Note 2]
Both
10%
Both
10%
France
Both
10%
Both
10%
Both
10%
Both
10%
Greece
Source
20%
Source
20%
Source
30%
Hungary
Both
10%
Both
10%
Both
10%
Indonesia
Both
Both
10% [Note 2]
Both
15%
Iceland
Both
10%
Both
10%
Both
10%
Both
10%
Ireland
Both
10%-15%
Both
10% [Note 2]
Both
10%
Both
10%
Israel
Both
10%
Both
10% [Note 2]
Both
10%
Both
10%
Italy
Both
Both
15% [Note 2]
Both
20%
Both
20%
No separate provision
Both
10%
No separate provision
Country
Right of
State to
tax
Tax rate
Interest
Right of
State to
tax
Tax rate
Royalty
Right of
State to tax
Tax rate
Right of State
to tax
Tax rate
Japan
Both
10%
Both
10%
Both
10%
Both
10%
Jordan
Both
10%
Both
10% [Note 2]
Both
20%
Both
20%
Kazakstan
Both
10%
Both
10% [Note 2]
Both
10%
Both
10%
Kenya
Both
15%
Both
15% [Note 2]
Both
20%
Both
17.5%
Korea
Both
Both
10% if interest is
paid to a bank;
15% for others
[Note 2]
Both
15%
Both
15%
Kuwait
Both
10%
Both
10%
Both
10%
Both
10%
Kyrgyz
Republic
Both
10%
Both
10%
Both
15%
Both
15%
Libyan Arab
Jamahiriya
Source
20%
Source
20%
Source
30%
Luxembourg
Both
10%
Both
10%
Both
10%
Both
10%
Malaysia
Both
10%
Both
10%
Both
10%
Both
10%
Malta
Both
Both
10% [Note 2]
Both
15%
Both
10%
No separate provision
Country
Right of
State to
tax
Tax rate
Interest
Right of
State to
tax
Tax rate
Royalty
Right of
State to tax
Tax rate
Right of State
to tax
Both
Tax rate
Mangolia
Both
15%
Both
15% [Note 2]
Both
15%
25%
Mauritius
Both
Both
Both
15%
Montenegro
Both
Both
10%
Both
10%
Both
Myanmar
Both
5%
Both
10%
Both
10%
No separate provision
Morocco
Both
10%
Both
10% [Note 2]
Both
10%
Both
Mozambique
Both
7.5%
Both
10%
Both
10%
No separate provision
Namibia
Both
10%
Both
10% [Note 2]
Both
10%
Both
Nepal
Both
Both
10% if paid to
bank,; for other
15% {Note 2}
Both
15%
Netherlands
Both
10%
Both
10% [Note 2]
Both
10%
No separate provision
10%
10%
10%
No separate provision
Both
10%
Country
Right of
State to
tax
Tax rate
Interest
Right of
State to
tax
Tax rate
Royalty
Right of
State to
tax
Tax rate
Tax rate
New Zealand
Both
15%
Both
10% [Note 2]
Both
10%
Both
10%
Norway
Both
Both
15% [Note 2]
Both
10%
Both
10%
Oman
Both
Both
10% [Note 2]
Both
15%
Both
15%
Philippines
Both
Both
10% if interest is
received
by
a
financial institution
or
insurance
company; 15% in
other cases
Both
15% if it is payable
in pursuance of any
collaboration
agreement
approved by the
Government
of
India
Poland
Both
15%
Both
15% [Note 2]
Both
22.5%
Both
22.5%
Portuguese
Republic
Both
10%
Both
10%
Both
10%
Both
10%
Quatar
Both
5%-10%
Both
10% [Note 2]
Both
10%
Both
10%
Romania
Both
Both
15% [Note 2]
Both
22.5%
Both
22.5%
C ountry
Right of
State to tax
Tax rate
Interest
Right of
State to
tax
Tax rate
Royalty
Right of
State to
tax
Tax rate
Right of
State to tax
Tax rate
Russian
Federation
Both
10%
Both
10% [Note 2]
Both
10%
Saudi Arabia
Both
5%
Both
10%
Both
10%
Serbia
Both
Both
10%
Both
10%
Both
10%
Singapore
Both
Both
Both
10%
Both
10%
Slovenia
Both
5-15%
Both
10%
Both
10%
Both
10%
South Africa
Both
10%
Both
10% [Note 2]
Both
10%
Both
10%
Spain
Both
15%
Both
15% [Note 2]
Both
[Note 4]
Both
[Note 4]
Sri Lanka
Both
15%
Both
10% [Note 2]
Both
10%
Both
10%
Sudan
Both
10%
Both
10%
Both
10%
No separate provision
Sweden
Both
10%
Both
10% [Note 2]
Both
10%
Both
10%
Swiss
Both
10%
Both
10% [Note 5]
Both
10%
Both
10%
Both
10%
No separate provision
C ountry
Right of
State to tax
Interest
Royalty
Tax rate
Right
of
State
to tax
Both
Both
10%
Both
10%
Taipei
Both
12.5%
Both
10%
Both
10%
Tajikistan
Both
Both
10%
Both
10%
No separate provision
Tanzania
Both
Both
12.5%
Both
20%
No separate provision
Thailand
Both
Both
10%
for
financial
institutions and insurance
company; 20% for others
[Note 2]
Both
15%
No separate provision
Both
10%
Both
10% [Note 2]
Both
10%
Both
10%
Both
15%
Both
Both
15%
Both
15%
Syrian
Public
Trinidad
Tobago
Turkey
Arab
and
Tax rate
Right of
State to
tax
Tax rate
Right of State
to tax
Tax rate
No separate provision
Both
10%
Country
Right of
State to
tax
Tax rate
Interest
Right of
State to tax
Tax rate
Royalty
Right of
State to
tax
Tax rate
Tax rate
Turkmenistan
Both
10%
Both
10% [Note 2]
Both
10%
Both
10%
Uganda
Both
10%
Both
10%
Both
10%
Both
10%
Ukraine
Both
10%-15%
Both
10% [Note 2]
Both
10%
Both
10%
United
Arab
Emirates
Both
Both
5% if loan is granted by a
bank/similar
financial
institute; 12.5% for others
Both
10%
No separate provision
United
Arab
Republic
Source
10%
Source
20%
Source
30%
No separate provision
United
Kingdom
Both
15%
Both
Both
[Note 3]
Both
[Note 3]
United States
Mexican
Both
10%
Both
10%
Both
10%
Both
10%
United States
Both
Both
Source
[Note 3]
Source
[Note 3]
Uzbekistan
Both
15%
Both
15% [Note 2]
Both
15%
Both
15%
Vietnam
Both
10%
Both
10% [Note 2]
Both
10%
Both
10%
Interest
Royalty
Country
Right of
State to tax
Zambia
Both
Tax rate
5% if at least 25% of the shares of the company
paying the dividend is held for a period of at
least 6 months prior to the date of payment of
the dividend; 15% in other cases
Right of
State to tax
Both
Right of
State to tax
Tax rate
10% [Note 2]
Both
Tax rate
10%
Right of
State to tax
Tax rate
No separate provision
1.
10 per cent of the gross amount of the interest on loans made or guaranteed by a bank or other financial institution carrying on bona fide banking or financing
business or by an enterprise which holds directly or indirectly at least 10 per cent of the capital of the company paying the interest.
2.
Dividend/interest earned by the Government and certain institutions like the Reserve Bank of India is exempt from taxation in the country of source.
3.
Royalties and fees for technical services would be taxable in the country of source at the following rates :
a. 10 per cent in case of rental of equipment and services provided along with know-how and technical services ;
b. any other case
i. during first five years of the agreement
- 15 per cent if the payer is Government or specified organisation;
- 20 per cent in other cases;
ii. subsequent years, 15% in all cases.
Income of Government and certain institutions will be exempt from taxation in the country of source.
4. Royalties and fees for technical services would be taxable in the country of source at the following rates :
a. 10 per cent in case of royalties relating to the payments for the use of, or the right to use, industrial, commercial or scientific equipment;
b. 20 per cent in case of fees for technical services and other royalties.
5. 10 per cent of the gross amount of the interest on loans made or guaranteed by a bank or other financial institution carrying on bona fide banking or financing
business or by an enterprise which holds directly or indirectly at least 20 per cent of the capital of the company paying the interest.
Annexure 2
INCOME TAX
ASSESSING OFFICER
WITH SEAL
Annexure - 3
FORMAT FOR DECLARATION FOR WITHHOLDING TAX ON N.R.O. DEPOSITS
The Branch Head,
Bank of Baroda,
___ ___ __ _____ ____ Branch,
___ ___ __ _____ ____.
DECLAR ATION
1. I am a non - resident within the meaning of the Indian Income Ta x Act, 1961 for the
Financial Year__________ i. e.period from 01 April _____ to 31 March _____.
2. I am a Tax Resident of (name of the country) within the meaning of the Agreement for
Avoidance of Double Taxation between India and (name of the country) i. e. the Tax
Treaty.
3. I am the beneficial owner of the interest paid by your Bank for the period ___________
to___________ and that I do not carry on any business in India or perform any
independent personal services in India through a permanent establishment or fixed base
situated in India.
4. I undertake to include the said interest income in my tax liability in the country of my
Tax Residency i. e. (name of the country)
5. I am entitled to the benefits of the said Tax Treaty in respect of interest earned by me
from your Bank on NRO Deposits for the period ____ ___ __ __ to _______ ____ and
that the said income is subject to the withholding tax @ _ __ __% plus cess if any.
6. I undertake to provide a fresh declaration promptly in case of any change in the facts
given above. I also undertake to provide fresh declaration for each financial year by 15th
April of the year.
7. I undertake to indemnify your Bank any tax loss including interest and penalty which
may result on account of providing me tax benefits as per my declaration. The obligation
to indemnify shall survive indefinitely.
8. I under take to provide my Tax Residency Certificate from the Tax Authorities of my
country of residence.
9. I confirm that any delay or failure to provide any information as desired by your Bank,
will allow the Bank to apply the income tax rate provided in Indian Income Tax Act,
1961 ignoring the lower rate in the Tax Treaty.
10. I confirm that your Bank will not be liable to refund any withholding tax deducted from
the said interest income.
(SIGNATURE
Date: _______
Place: _______
NAME: ____________________________
ACCOUNT DETAILS: __________________
Annexure-4
RATES OF TDS FOR FY 12-13
Sr.
No
1.
Sec
Nature of Payment
194A
2.
194C
3.
194H
4.
194 I
5.
6.
194J
195
TDS
Rate**
10%
1%
2%
10%
2%
10%
10%
Rate as
per DTAA
When TDS is
applicable
If total interest paid
during a financial year
exceeds Rs.10,000.
If contract payment
exceeds
-Rs30,000 per single
contract payment or
-Rs75,000 in aggregate
during a financial year.
If aggregate
to the payee
financial year
Rs.5,000.
If aggregate
to the payee
financial year
Rs. 1,80,000.
If aggregate
to the payee
financial year
Rs.30,000.
payment
during a
exceeds
payment
during a
exceeds
payment
during a
exceeds
TDS is applicable on
any
sum
paid
as
interest
on
NRO
deposits to a NRI
customer.
Annexure -5
FREQUENTLY ASKED QUESTIONS AND ANSWERS
Sr.
No
1.
2.
3.
4.
5.
6.
7.
Answers
No.
The Bank cannot refund TDS which was
deducted prior to submission of form
15G.
Sr.
No
8.
9.
10.
11.
12.
13.
14
Answers
Mr. X had submitted Form 15G in Exemption from TDS can be availed
April 2012. Interest paid to Mr. X by submitting Form 15G only if total
during FY 12-13 is Rs.2,05,000. Is income of Mr. X for FY 12-13
tax deductible u/s 194A
(including interest earned from Bank)
is less than the basic exemption limit
i.e Rs. 2,00,000.
Should
the
Branch
take
into
consideration
other
deduction
available to the customer while
verifying
Form
15G
from
the
customer?
(For eg: int on housing loan, eligible
investments for deduction u/s 80C)
A customer Mr. C does not have a
PAN. Can the Branch accept a
declaration in Form 15 G submitted
by Mr. C ?
If a bill has fees/ charges plus service
tax, should TDS be deducted on the
total bill amount OR only on
fees/charges?
The Branch is paying lease rent of
Rs. 10,000 pm to 3 people who are
jointly the landlords of the property.
Is the branch liable to deduct tax?
As per lease agreement the Branch is
liable pay interest free deposit which
will be refunded after the expiry of
lease agreement. Should the branch
deduct TDS on such payment?
As per lease agreement the Branch is
liable to pay 3 month advance rent
in the form of interest free deposit
which will be adjusted against the
last three months rent payable by
the Branch.
No.
The customer has to mention his PAN
in the declaration Form 15G.
TDS should be deducted on the total
Bill amount i.e. inclusive of service
tax except in case of rent paid to a
lessor.
No.
The branch is not liable to deduct tax
since payment to each person does
not exceed Rs. 1,80,000 per annum.
No.
The branch is not required to
deduct TDS since it is a refundable
deposit.
Yes.
The branch should deduct TDS, if total
rent (including the 3 month advance
rent) paid to the landlord exceeds
Rs. 1,80,000 per annum.
Sr.
No
15.
16.
17.
18.
19.
20.
21.
22.
Answers
Is the Branch liable to deduct tax u/s If the total payment (including the
194 J on advance fees paid to an advance fees) to the advocate during
advocate?
a financial year exceeds Rs. 30,000
then the branch is liable to deduct
TDS.
What will be the consequence if the The branch is liable to pay penal
Branch fails to deduct tax on any interest @1% from the date on
payment?
which tax was deductible to the date
on which tax is actually deducted.
What will be the consequence, if the The Branch is liable to pay penal
branch has deducted tax on time interest @ 1.5% from the date on
but forgot to remit to the which tax was actually deducted to
governments account by the due the date on which tax is actually paid.
date?
If the customer does not have PAN, If the customer does not mention his
at what rate will tax be deducted PAN TDS will be deducted @ 20%.
from interest payable to him?
Note: TDS applicable only if
interest paid exceeds Rs. 10,000
Mr. P deposits cash of Rs. 55,000 in Mr. Qs PAN should be quoted on the
Mr. Qs account. Whose PAN no. deposit receipt since Mr. Q is the
should be quoted in the deposit customer of the Bank.
receipt Mr. P or Mr.Q?
In the above example, if Mr. P has Yes.
signed the deposit receipt and quoted
Mr. Qs PAN ?
The branch can accept the deposit
since Mr. Qs PAN is quoted in the
Can the branch accept such deposit deposit receipt irrespective of who has
receipt?
signed it.
Mr. A has submitted a copy of his No.
PAN card while opening the account
with the Bank. Should he submit a Mr. A is not required to submit a copy
copy of PAN card every time he of his PAN card every time he
deposits cash above Rs. 50,000?
deposits cash above Rs. 50,000.
However, Mr. A has to mandatorily
quote his PAN in the deposit receipt.
Mr. B deposits cash in installments Yes.
i.e Rs. 10,000, Rs. 15,000 and Rs.
27,000 during one day. Should Mr. B If cash deposited in aggregate exceed
quote his PAN in the deposit receipt? Rs. 50,000 during any one day, the
customer has to mandatorily quote his
PAN in the deposit receipt.