PAN requirement

Alex X Gonsalves (Querist) 11 February 2011 This query is : Resolved
Is it necessary to quote or give PAN for FD below 50,000/=? I was told by a bank official that it is now necessary!

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A V Vishal (Expert) 11 February 2011
As per clause (C) of rule 114B of the Income Tax Rules 1962, it is mandatory for the customers to quote the PAN
(Permanent Account Number) or GIR (General Index Register) Number, in the account opening forms pertaining to Term
deposits exceeding Rs.50,000 and for opening an account of all other types. However, in your case it is necessary to furnish your PAN since if there is any TDS on the interest that exceeds Rs.10,000 then your PAN is to be quoted for filing e-TDS and also on not furnishing PAN the deductor has to deduct tax at higher rate.

Advocate. Arunagiri (Expert) 12 February 2011
Your banker is wrong, you need not quote the PAN number. The consequences of not producing the PAN may effect while deducting the tax on the interest if exceeds Rs. 10000/-. In your case the interest will not exceed Rs.10,000/-. so no worry.

Alex X Gonsalves (Querist) 12 February 2011
Thank you, thats what I thought too about the banker being mistaken, but had to ask in case there was a new ruling or notification which I and many others may not be aware of.