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Deposits

Is PAN a mandatory requirement to book a fixed deposit?

Yes, PAN (Permanent Account Number) is mandatory when booking a Fixed Deposit with Axis Bank if the total amount exceeds INR 50,000. 
The consequences of not providing a PAN are:

1. Increased TDS rate: TDS recovery will increase from 10% to 20%.
2. No TDS credit: The Income Tax agency does not provide TDS credit.
3. No TDS Certificate: According to CBDT Circular No. 03/11, no TDS Certificate will be issued.
4. Penal TDS: Penal TDS will be applied and Form 15G/H and any exemption certificates will be invalid.

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