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Business News/ Money / Personal Finance/  Don't have a PAN or Aadhaar number? You cannot claim an income tax refund

My mother is a senior citizen. She had made fixed deposits with various banks. She had submitted a 15G form also for no deduction of tax at source but the bank has deducted tax @ 20% on interest as she does not have PAN. The bank has advised us to file her ITR to claim the refund. What should we do to get the refund? Can she file her income tax return without a PAN card?

Answer: As per Section 206AA since your mother does not have a PAN number, the bank is obliged to deduct tax @ 20% on the interest even if your mother has submitted form No.15G. Since your mother is a senior citizen she is required to submit form No. 15H and not 15G. A senior citizen who is a resident can only submit from No. 15 H if the total tax on his income is nil.

For claiming the refund of tax already deducted by the bank it is necessary to file her income tax return (ITR). Please note, that your mother can not file her ITR in case she does not have a PAN. Since your mother does not have a PAN, first of all, you have to apply for a PAN. 

However, in case she has an Aadhaar Number, the same can be used in place of PAN. She can submit the same to the bank with a request to revise the TDS return submitted by them to mention her PAN/Aadhaar number against her name. Please note that unless the bank carries out this correction, your mother will not get credit for the tax deducted by the bank. Moreover, even if your mother submits from No. 15H she has to furnish her PAN/Aadhaar, failing which the bank will again deduct tax @ 20% on the whole of the interest. Please note that it is not mandatory to file your income tax return just because you have a PAN unless you satisfy the basic conditions requiring one to file his ITR.

Balwant Jain is a tax and investment expert and can be reached at and @jainbalwant on his X handle.


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Updated: 19 Sep 2023, 12:43 PM IST
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