Friday, February 20, 2015

Safety in paper ceritficates? - An entry on the PAN site would be of far better

How would I submit a form 15H form(to not deduct tax on interest income) to a branch in another city? One year, I had submitted the form for my mother but the tax had been deducted. I had no proof and what would have been the point. My mistake had been to not check that the taxes were being deducted each quarter by that bank.

  • Income tax office has progressed and made it easy to know the taxes deducted at source. I wish they would go a step further and I should be able to file form 15H with them(obviously online) and the banks should use this information using the PAN number. 
  •  This year my pension has stopped even though I had submitted a certificate that I am alive. It is a ridiculously low sum but when I go back to Chandigarh, I will have to take up the issue with the branch. For those who die, if they had a PAN, the registrar of deaths could change the status on the PAN site. Why bother to collect 'proof' of being alive once a year? I suppose I could die abroad or may disappear without a trace but do these few instances justify the collection and storage of the huge number of life certificates each year and does it even help?
  • Even the tax status, e.g. resident/non-resident, could be just reported to the PAN site and there should be no need to change bank accounts from resident to NRO, at least for individuals who are not HNI. Technically, only individuals residing in India can open a savings bank account. So, what is the status of these accounts once a person is non-resident? This is a routine issue for any IT person going on an assignment for a year or more. As per the law, should the person close each such account if not residing in India for more than 6 months in a year?

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