Guidelines for Deduction/Non Deduction of TDS in SCSS Accounts in Post Office
Govt issued Guidelines for Deduction/Non-Deduction of TDS in SCSS Accounts in Post Office.
Various instances has been noticed where TDS has been deducted even after submission of form 15G/15H.
Department is receiving representations from the SCSS account holder(s) that TDS amount has been deducted from their interest payments even after submission of form 15G/15H for the current Financial Year.
All the Circles should take necessary action for configuration of TDS/Form 15G/15H/NOPAN status in all SCSS accounts and CIFs.
Updated guidelines are again reiterated in respect of configuration of TDS/15G_15H/No PAN in respect of Senior Citizens Savings Scheme (SCSS) accounts in Finacle for necessary action
Government of India has amended Section 194A of Income Tax Act, 1961 and accordingly the total aggregate interest income in a Financial Year payable in case of all SCSS account holders, who has not attained the age of 60 years has been revised and configured in Finacle from Rs. 10,000/- to Rs. 40,000/- for the purpose of TDS deduction.
Non-CBS post offices shall also deduct the TDS from the SCSS account holders aged below 60 years in accordance with the revised limit.
It is the responsibility of concerned CBS post office for updation of form 15G/15H (if submitted) in every financial year and update correct PAN number.
Detailed Guidelines are attached here.