Government of India
Ministry of Communications
Department of Posts
Dak Bhawan New Delhi-110001
All Head of Circles/Regions,
Sub: – Deduction/Non-deduction of TDS in SCSS accounts in CBS post offices reg.
This office is receiving various representations from the SCSS account holder(s) that CBS post offices are either not deducting TDS or deducting TDS even after submission of form 15G/15H or deduct TDS at the higher rate on SCSS interest payment.
2. It reflects that many post offices are not following prescribed procedure to configure TDS Deduction or non-deduction in Finacle in SCSS accounts.
3. In this connection, following guidelines in respect of TDS on SCSS accounts in Finacle are prescribed: –
|CIF level||Account level||TDS Recovery based on total interest payable for all the accounts under a CIF|
|NOTAX||TDS / No Tax||NIL (Incorrect as per rulings)|
|NOPAN||No Tax (15H/15G)||NIL|
|NOPNS||No Tax (15H/15G)||NIL|
|TDSNR||TDS||10% (if interest>10000 per annum)|
|TDSNR||No Tax (15H/15G)||NIL|
|TDSNS||TDS||10% (if interest>50000 per annum )|
|TDSNS||No Tax (15H/15G||NIL|
4. While reviewing PAN attached with SCSS accounts in Finacle, it is observed that 18,494 PAN attached with SCSS accounts are invalid (list is attached for reference).
5. It is the responsibility of concerned CBS post office for updation of form 15G/15H and correct PAN. Quoting invalid PAN /wrong PAN may attract penalty u/s 272B of Income Tax Act-1961.
6. It is requested to circulate these guidelines to all CBS post offices for information, guidance and necessary action.
7. This is issues with approval of the competent authority.
Assistant Director (SB-II)