Hit enter to search or ESC to close
If you have invested in Fixed Deposits and you have failed to link your PAN with your Aadhaar and now your PAN card is inoperative, then you are in for a really tough time. . Now you will have to forget the benefit of hefty interest of 7 percent on FD, while now you will also have to be ready to pay TDS of 20 percent on it. As per rules, if PAN card is inoperative, you will not be allowed to submit Form 15G/H for your Fixed Deposit and it will attract TDS at 20 per cent instead of 10 per cent.
According to the HDFC Bank website, “If PAN is not linked with Aadhaar, such PAN will become inoperative with effect from September 16.” 1st July 2023 and onwards the customer will not be allowed to submit Form 15G/H and higher TDS deduction will be applicable for inoperative PAN. For Fixed Deposits, if you earn interest above Rs 40,000 (Rs 50,000 for senior citizens) in a financial year, you will be liable for TDS on your FD investment.
If you do not link Aadhaar by 30 June 2023, then PAN will become inactive. The deadline for linking PAN with Aadhaar was June 30, 2023. The persons who have not linked these two, their PAN card has become inactive from July 1, 2023.
As per the rules of the Income Tax Act, 1961 (‘Act’), every person who has been assigned PAN by July 1, 2017, and is entitled to obtain an Aadhaar number, is required to inform the prescribed authority. before 30 June 2023 on payment of prescribed fee.
What are the implications of booking an FD without PAN?
Table of Contents
However, PAN can be reactivated in 30 days by intimation of Aadhaar to the prescribed authority after payment of a fee of Rs 1,000.
Latest Business News
Photo: PTI Joe Biden, President of the United States Unemployment Hits 50 Year Low in US and Inflation Bent: Good news has come from America in the midst of a worldwide recession. In the...
Photo:PIXABAY fixed deposit Making FD in public sector Bank of Baroda has now become more attractive for investors than before. The bank has increased the interest rates on fixed deposits by 0.50 percent. This...
New Delhi : Foxconn, the world’s largest contract electronics maker, took a big decision on Monday. The company has exited its joint venture with Vedanta for chip manufacturing. Vedanta and Foxconn signed an agreement...