As per Income Tax Act 1961 a new provision relating to tax deduction at source (TDS) has become applicable w.e.f. 01/04/2010, under which it is obligatory for every person, who is liable for deduction of TDS on interest on deposit, to furnish a copy of PAN card. If the PAN card is invalid or does not belong to the deductees, TDS is required to be deducted @ 20% or at the rate which is in force, whichever is higher in all cases, whereas the TDS applicable for customers having PAN cards is currently 10% only.
Customers may note that, your Bank is providing service of issuance of PAN Card. Hence this facility may avail to save in TDS deduction.