Do you have a fixed deposit in your name? Well, get ready to shell out more in case you have failed to link your PAN with Aadhaar and your PAN is now inoperative, you will not be allowed to submit Form 15G/H against your fixed deposit and it will attract a TDS of 20 per cent instead of 10 per cent.
“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 15G/H and higher TDS deduction will be applicable for inoperative PANs,” reported The Economic Times, quoting HDFC Bank website.
In case you earn an interest of more than Rs
40,000 (Rs 50,000 for senior citizens) in a
financial year, you will be liable for TDS on your Fixed Deposit investments.
The last date for linking PAN with Aadhaar was June 30, 2023. In case you haven’t linked your PAN with Aadhaar, the becomes inoperative from
July 1, 2023.
Implications of booking an FD without PAN?
In the absence of PAN, TDS will be recovered at 20 per cent ( as against 10 per cent).
No TDS will be credited from the Income Tax Department.
No TDS certificate will be issued.
Form 15G/H and other exemption certificates will be invalid and penal TDS will apply.
However, if your PAN has become operative, you can make it operative again in 30 days, upon intimation of Aadhaar to the prescribed authority after payment of a fee of Rs 1,000.
In case you haven’t linked PAN with Aadhaar
No refund shall be made against such PAN
b) Interest shall not be payable on such refund for the period during which PAN remains inoperative
c)TDS/TCS deduction will attract a higher rate applicable to PAN not present.
Apart from these, you will also not be able to book a fixed deposit above Rs 50,000, deposit cash above Rs 50,000, get a new Debit/Credit card, invest or redeem your Mutual funds.