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Now Start to pay for tax for the amount you have in the Savings account, if the tax is not deducted at the source.To avoid this you have to provide your PAN (Permanent Account number). The tax on this amount could be around 20 percent of the amount deposited in your savings account which is 2 -10% for usual transactions. Yes, the Union Budget had made it mandatory for residents and non-residents to quote this number or face a higher rate of withholding tax. This tax deduction effects from Thursday, April 1. The goal of the new rule is to encourage more people to obtain PAN, a 10-digit alphanumeric tax payer identification number, and thereby become visible to tax authorities. This way, it will help the income tax authorities to cathch the tax defailters. Senior citizens could just file Form 15H in absence of tax liability and become eligible for exemption from TDS. Other wise they ahve to face a TDS rate of 20 percent. Ideally all indians should obtain a PAN number and cote at quote it where required. GOod policies to track those who are not paying proper taxes.