Did not furnish PAN for FD? You can’t claim TDS credit now

October 19, 2021 12:45 AM

Here's how to get Form 26 AS or Form 16 for the income tax deductions on FDs.

Prepayment of home loan does not entail any specific benefits whereas benefit on repayment of home loan is provided.Prepayment of home loan does not entail any specific benefits whereas benefit on repayment of home loan is provided.

By Chirag Nangia

My mother is a senior citizen and has not submitted PAN to the bank and income tax has been deducted on her FD for the last three years. How do we get Form 26 AS or Form 16 for the income tax deductions on FDs?
—Sudhakar

The bank is liable to deduct tax at source on interest earned on fixed deposits. Thereafter, the bank is obligated to file a TDS return, wherein it is required to report the tax deducted against the PAN of the deductee. This information received by the tax department, is reflected in Form 26AS of the deductee, enabling him to claim credit of such tax from his final tax liability, at the time of filing of return of income. Since you had not furnished PAN to the bank for the last 3 years, the TDS returns filed by the bank would have indicated “PAN not available”. Accordingly, the tax so deducted will not be reflected in your Form 26AS and it will not be possible to claim TDS credit.
Even if you furnish the PAN now and the bank revises its TDS return to reflect tax deduction against your mother’s PAN, you cannot claim credit as the TDS credit lapses if it is not claimed while filing return/ revised return for the relevant assessment year, the time limit of which has expired in your case. However, henceforth, Form 26AS can be downloaded by clicking on ‘view Form 26AS’ under the ‘e-file’ tab of the income tax e-filing portal. Form 16 is a certificate of TDS that the bank is required to furnish to the deductee after successfully depositing TDS with the government.

I purchased a flat two years ago. If I sell this and purchase a new flat, can I get any benefits in stamp duty?
—Prasanna Sali

Assuming you have held the property for a period exceeding 24 months, the capital gains on sale is classified as long-term capital gain (LTCG). For computing LTCG, the indexed cost of acquisition, indexed cost of improvement and expenses (incurred wholly and exclus-ively in connection with the transfer) is deducted from the sale proceeds. LTCG so computed is taxed at the rate of 20%.

There are no provisions for concess-ion in stamp duty payable at the time of purchase of another residential property, upon sale of one. However, capital gains is tax exempt if you buy another house within one year before or two years from the date of transfer. In case of construction, time limit is three years.

The writer is director, Nangia Andersen India. Send your queries to fepersonalfinance@expressindia.com

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