My father paased away in Nov 2016. He had two fd accounts. In one account , I am second account holder, in other fd , my mother is second account holder. Since fd accounts are at higher rate of interests , so we do not want to premature them. These fds will mature in March 2020. My query is as follows : a) Bank is not able to delete name of my late father as 1st account holder due to software constraints. So both accounts will have PAN Number of my father till maturity in 2020. Therefore, TDs statement will be in my late father\'s name. a) As I will file my father\'s return as legal heir, so my father\'s PAN will be dormant. In this case, will tds be deducted at 10% or 20 % in these two fd accounts in FY 2017 18 after this AY. b) For the tds deducted in FY 2017 18, FY 2018 19, FY 2019 20 , if TDS Certificate will be issued in my late father\'s name, then can I and my mother both, use these TDS Certificate of my late father sepatately for filing return in AY 2018 19 because in one account I am second account holder and in other account my mother is second account holder. c) Is there any way that TDS deducted in FY 2017 18 2018 19, 2019 20 be avoided or refunded, considering the fact that I will not be able to file my father\'s return for refund for these FYs. d) Can I and my mother submit form 15G although our estimated income due to these two FD accounts is in tax slab.
4 Answers
Hi,
a) If banks' system have not been updated about PAN being dormant, then TDS can be deducted at 10%. Kindly note that whatever be the TDS rate, you can file ITR as legal heir and pay taxes or get refund (if any) as per the calculations.
Kindly read:
https://www.relakhs.com/recurring-deposit-taxes-bank-fd-rd-interest-itr/
https://www.relakhs.com/misconceptions-on-tds-tax-deducted-at-source/
b) What do you mean by 'separately' ?
c) & d) If higher TDS is deducted, can claim by filing ITR by you as legal heir.
" Kindly note that no TDS does not mean no tax liability."
Banks generally issue TDS certificate in primary account holder name, so you may check with your banker on whose name they are going to issue TDS certificates going forward..
Hi,
I have noticed that you have posted a new question which is related to the above query, hence I am copy - pasting your reply as below and replying to it here itself;
Your reply :
"
Dear sir,
As I have informed you that there are two fd accounts,say A and B , in my late father's name. In account A , I am the second account holder. In account B , my mother is second account holder. Bank says they will issue tds certificate in only my late father's name. So please guide me on these issues, if possible in detail please:
A) Who will be the legal heir, me or my mother or we both.
B) If I am the legal heir, then I will use TDS Certificate for claim TDS deducted in FD account A. Can my mother use my late father's TDS Certificate as she is second account holder in FD account B.
C) Since I will be able to file my late fathet's return as legal heir only one timeCan we use my late father's TDS Certificate in next three Assessment Years for claiming TDS deducted as these FD accounts are maturing in 2020. Please enlighten me on the issue.
Thank you " My Reply : a) Either one of you can apply as a legal heir to file ITR on behalf of your father. The legal heir's PAN has to be submitted when filing ITR. b) Same as above. (If you are going to file ITR, you need to get legal heir certificate done) c) I believe that only one Return is accepted for one Assessment year, after that you can not file ITR on behalf of your father. You may have to request your banker to issue TDS certificates in your name and other FD, you may have to transfer it to mother's name.
As I have informed you that there are two fd accounts,say A and B , in my late father's name. In account A , I am the second account holder. In account B , my mother is second account holder. Bank says they will issue tds certificate in only my late father's name. So please guide me on these issues, if possible in detail please:
A) Who will be the legal heir, me or my mother or we both.
B) If I am the legal heir, then I will use TDS Certificate for claim TDS deducted in FD account A. Can my mother use my late father's TDS Certificate as she is second account holder in FD account B.
C) Since I will be able to file my late fathet's return as legal heir only one timeCan we use my late father's TDS Certificate in next three Assessment Years for claiming TDS deducted as these FD accounts are maturing in 2020. Please enlighten me on the issue.
Thank you " My Reply : a) Either one of you can apply as a legal heir to file ITR on behalf of your father. The legal heir's PAN has to be submitted when filing ITR. b) Same as above. (If you are going to file ITR, you need to get legal heir certificate done) c) I believe that only one Return is accepted for one Assessment year, after that you can not file ITR on behalf of your father. You may have to request your banker to issue TDS certificates in your name and other FD, you may have to transfer it to mother's name.
Can I apply under section 197 / form 13 for a lower TDS rate and will bank accept such certificate
Hi,
Kindly note that as a legal heir, you have to file the return on behalf of the deceased for income earned till the date of death. Any income earned after the date of death is taxable in the hands of the legal heir (you).
For the income earned till the date of death, even if higher TDS is deducted, you can claim it as Refund (if any).
Kindly go through my suggested article on TDS.
I believe that Form 13 is not applicable in cases of 'interest income from FDs'. Form 15g/h are applicable.
Kindly go through this article...
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