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| We wish to inform you about the requirement of submitting of Permanent Account Number (PAN) to The Hongkong and Shanghai Banking Corporation Limited (the Bank) and would like to inform you that as per provision of section 206AA of the Indian Income-Tax Act, 1961 as applicable in India it has become mandatory for payers to withhold tax on the interest on your term deposit at a higher rate if the payee does not provide its Permanent Account Number (PAN). |
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| In case you fail to provide your PAN to the Bank, then in accordance with the requirements of the Indian Income Tax Act, 1961, the interest on your term deposit would be liable for Tax Deduction at Source (TDS) at higher rates. |
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As per this provision, if PAN is not updated tax will be deducted at source at higher of the
following rates: |
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| i) |
At the rates prescribed in the Indian Income Tax Act, 1961 or |
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| ii) |
At the rates in force (which includes the Double Taxation Avoidance Agreement (DTAA) rates or |
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| iii) |
At the rate of 20% |
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| In case you are resident of a country with which India has Double Taxation Allowance Agreement (DTAA), benefit of lower rate of tax deduction in India (TDS)* as per tax treaty would not be available in case you fail to furnish your PAN. |
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| As per our records we do not have your PAN, hence request you to update the Bank with the same at the earliest. You can update your PAN in any of the following ways: |
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| 1. |
Submit a copy of the self attested PAN card or allotment letter to any of the Bank’s Branch in India stating your customer number/account number on the copy of PAN submitted by you. |
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| 2. |
You may also call us on our HSBC India PhoneBanking numbers and provide us the details of
your PAN. |
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| 3. |
You may send us the PAN details using the secured Personal Internet Banking facility. |
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| 4. |
Alternatively, you can mail us the self attested copy of your PAN to: |
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KYC Cell
The Hongkong and Shanghai Banking Corporation Limited
96, Dr. Radhakrishnan Salai
Mylapore, Chennai
Tamil Nadu - 600 004 |
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| We request you to submit your PAN details to the Bank at the earliest so that the same can be updated on your account. |
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| Please note that PAN would be updated in our records within 10 working days from the date of submission to the Bank, subject to verification of information from concerned regulatory authorities. |
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| Please feel free to call our PhoneBanking numbers (available on our website) in case you need any further clarification with respect to updation of your PAN. |
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| *Indian tax information given herein is general and is not meant to constitute, and therefore should not be construed, as advice. The tax consequences are also based on individual facts and circumstances. As such, prior professional tax advice should be sought to fully understand and appreciate the Indian tax implications. We assume no obligation or liability of any nature whatsoever by issuing this document. For US Citizens and US Residents, if necessary, you should consult your tax advisor for questions regarding the US tax treatment of these deposits. If you are resident in any other country, you should consult your tax advisor regarding the tax treatment of these deposits in your country of residence. |
