In cases where tax is deducted due to wrongful rejection of 15G/ 15H, just for getting the refund citizens have to go through the process of filing returns, within the stipulated time frame. The assessees just do not bother to file a tax return (due to lack of proper knowledge, access to the process of filing, etc) and claim the refund. As a result in many eligible cases TDS u/s 194A is wrongfully deducted. All bank depositors are also not well informed of IT provisions. KYC profiling is done at the time of opening the account/commencement of a relationship (based on past data and/or interest income on deposits with the bank etc) and is reviewed periodically.Įxperiencing this with many banks I had discussed with them the intent of introducing 15G and 15H introduced by the Income Tax and banks understanding of the terms ‘total income of the previous year’, gross interest income, estimated income, etc. Linking it to KYC profiling directly is also absurd. Some banks link 15G/ 15H declaration to income profiling and KYC. Many banks interpret the term ‘total income’ concerning declaration in 15G/ 15H, as any non-professional would and not as expected of them under the IT Act and due to lack of proper understanding, many times reject an otherwise in order Form 15G or 15H.
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