PAN is Mandatory to Book FD: If the linking of PAN card (PAN) and Aadhaar card (Aadhar Card) is not done by June 30, 2023, then the returns on Fixed Deposit (FD) will deteriorate. At the same time, you will not be able to book an FD of more than Rs 50,000. That's why you must have a PAN card for FD. But if you do not complete the linking by March 31, then your PAN card will be considered inactive. That is, even if you have a PAN card, you will not be able to use it. The deadline for linking PAN and Aadhaar has been extended from 31 March 2023 to 30 June 2023. Now you can link till June 30, 2023, by paying a fine of Rs 1000. The date of linking without penalty was 30 June 2022.

Why PAN is necessary for FD
PAN is necessary to open an FD account when you make a time deposit of more than Rs 50,000 or more than Rs 5 lakh in a single financial. PAN will be necessary if this FD is deposited in a banking company or a cooperative bank, in a post office or a non-banking financial company.

If PAN is not there TDS increased from 10% to 20%
If you have invested in FD, then you have to pay tax on the interest earned. According to Section 194A of the Income Tax Act, TDS is deducted at the rate of 10% if the interest earned on FD exceeds Rs 10,000 in a year. But if you have not given the details of PAN in the bank, then this deduction will be 20 per cent. Please tell that there is some exemption for senior citizens and interest of Rs 50,000 on FD is tax-free. Form 16A is seen to know how much TDS has been deducted from your FD interest. Bank issues quarterly interest certificates of FD in which you can find out about TDS deduction.

TDS certificate will also not be available
According to CBDT circular number 03/11, the TDS certificate will not be available in the absence of PAN. If your TDS has been deducted on FD interest, then an income tax return has to be filed to get it. Since you have not submitted the PAN to the bank, the bank will show 'PAN not available' when it files the TDS return. In this case, the TDS deducted on FD will not be reflected in Form 26AS. In this situation you cannot claim TDS credit.