Can my mother claim tax refund on ITR filing without a PAN card?
In order to claim a refund of the tax already deducted by the bank, one must file their income tax return (ITR). It is important to note that one cannot file their ITR without a PAN. Therefore, you must first apply for a PAN for them.
- Nov 2, 2024,
- Updated Nov 2, 2024 8:12 AM IST
My mother doesn't have a PAN. Can she claim refund while filing ITR as bank has deducted tax at 20% on the interest income from FDs?
My mother, who is a senior citizen, made fixed deposits with various banks and earned interest of Rs 3.30 lakh, which exceeded the income tax exemption limit of Rs 3 lakh. To reduce her taxable income and avail benefits under Section 80C, she deposited Rs 45,000 in the Senior Citizen Savings Scheme (SCSS). She also submitted Form 15G to the bank, requesting no tax deduction. However, the bank deducted tax at 20% on the interest, citing the absence of a PAN. We have been advised to file her Income Tax Return (ITR) to claim the refund. Can the bank not accept 80C proof to avoid deducting tax? How can we get the deducted tax refunded? She does not have a PAN card. Can she file a return without it?
Name with held
Since your mother is a senior citizen, she is required to submit form No. 15H, not 15G. A senior citizen can submit form No. 15H if the total tax on her income is nil. Therefore, if there is no tax liability after taking into account deductions under Section 80C, your mother could have submitted form No. 15H. The bank cannot accept proof under Section 80C while deducting TDS. According to Section 206AA, since your mother does not have a PAN number, the bank was required to deduct tax at a rate of 20% on the interest, even if your mother had submitted form No. 15G. To claim a refund of the tax already deducted by the bank, she must file her income tax return (ITR). Please note, your mother cannot file her ITR if she does not have a PAN. Therefore, you must first apply for a PAN for her. However, if she has an Aadhar Number, that can be used in place of a PAN.
Please submit this information to the bank and request that they revise the TDS return to include PAN/Aadhaar number against her name. It is important for the bank to link her Aadhaar/PAN with her name and submit the revised TDS return so that your mother can receive credit for the tax deducted. It is not always necessary to file an income tax return if you have a PAN.
My mother doesn't have a PAN. Can she claim refund while filing ITR as bank has deducted tax at 20% on the interest income from FDs?
My mother, who is a senior citizen, made fixed deposits with various banks and earned interest of Rs 3.30 lakh, which exceeded the income tax exemption limit of Rs 3 lakh. To reduce her taxable income and avail benefits under Section 80C, she deposited Rs 45,000 in the Senior Citizen Savings Scheme (SCSS). She also submitted Form 15G to the bank, requesting no tax deduction. However, the bank deducted tax at 20% on the interest, citing the absence of a PAN. We have been advised to file her Income Tax Return (ITR) to claim the refund. Can the bank not accept 80C proof to avoid deducting tax? How can we get the deducted tax refunded? She does not have a PAN card. Can she file a return without it?
Name with held
Since your mother is a senior citizen, she is required to submit form No. 15H, not 15G. A senior citizen can submit form No. 15H if the total tax on her income is nil. Therefore, if there is no tax liability after taking into account deductions under Section 80C, your mother could have submitted form No. 15H. The bank cannot accept proof under Section 80C while deducting TDS. According to Section 206AA, since your mother does not have a PAN number, the bank was required to deduct tax at a rate of 20% on the interest, even if your mother had submitted form No. 15G. To claim a refund of the tax already deducted by the bank, she must file her income tax return (ITR). Please note, your mother cannot file her ITR if she does not have a PAN. Therefore, you must first apply for a PAN for her. However, if she has an Aadhar Number, that can be used in place of a PAN.
Please submit this information to the bank and request that they revise the TDS return to include PAN/Aadhaar number against her name. It is important for the bank to link her Aadhaar/PAN with her name and submit the revised TDS return so that your mother can receive credit for the tax deducted. It is not always necessary to file an income tax return if you have a PAN.