If the PAN is not furnished to the bank, tax at the prescribed rate or 20%, whichever is higher will be deducted, while paying / crediting interest on deposits. However, there is no TDS on interest earned on NRE Deposits in Rupee / Foreign currency and also on interest earned in domestic SB & RD A/cs. For domestic term deposits, TDS will be deducted, only if the aggregate interest exceeds Rs.10,000/- in a financial year. As per the revised rules, Form 15 G / 15 H for non deduction of tax in domestic term deposits will be valid / accepted, only if the customer furnishes his PAN to the bank. Once the tax is deducted by the bank and paid to the Govt. of India, (where PAN is not submitted) Bank cannot refund the amount. Hence we advise you to obtain PAN at the earliest and communicate the same to your bank branch before tax is actually deducted on interest payments.