Why is it important to provide PAN details to the bank?
If a bank deposit holder does not provide Permanent Account Number (PAN) details to the bank, the interest income on the deposit will attract a higher tax deduction at source (TDS).
If the interest income on a bank deposit exceeds Rs 10,000 a year, the bank deducts 10.3 per cent as TDS, provided PAN details are given. If PAN details are not provided, the deduction increases to 20.6 per cent.
What happens if the PAN details are found to be incorrect?
If PAN card details given are found to be incorrect, the tax refunds get affected. Reason: If the PAN provided by the deposit holder does not match with NSDL (National Securities Depository Limited) records, you will lose your tax refunds, which will affect your tax-adjusted returns.
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