Is submitting a PAN required in order to open a fixed deposit?

Yes, submitting a PAN (Permanent Account Number) is compulsory for opening a fixed deposit (FD) account as per the current income tax rules. Here are some key details:

1. PAN Requirement: All banks and financial institutions require PAN details for opening an FD.
2. Updated KYC: Along with PAN, banks also capture other KYC documents like address proof to comply with know-your-customer (KYC) regulatory norms.
3. Tax Deduction: PAN determines the applicability of TDS (tax deducted at source) on income from fixed deposits. It is also required for issuing Form 15G/H and reporting interest income to the IT department.
4. Penalty Without PAN: Opening high-value FDs without PAN submission usually entails higher TDS charges, subject to the applicable income tax provisions.

Having a valid PAN is compulsory by law for booking fixed deposits beyond a threshold value and enables efficient tax compliance on income earned. It is integral to KYC verification for opening an FD account.