Reserve Bank or India


May 31, 2013

All Scheduled Commercial Banks
(excluding RRBs)

Dear Sir/Madam,

Acknowledgement by banks at the time of submission of Form 15-G / 15-H

As you are aware banks are not required to deduct TDS from depositors who submit declaration in Form 15-G/15-H under Income Tax Rules, 1962. However, it has been brought to our notice that despite submission of Form 15-G/15-H by customers, banks are deducting tax at source, at times, causing inconvenience to customers resulting in a number of complaints.  Such instances arise because either the forms are misplaced or a track is not kept of forms received in the branches.

2. The matter has been examined by us in consultation with Indian Banks’ Association (IBA). With a view to protect interest of the depositors and for rendering better customer service, banks are advised to give an acknowledgment at the time of receipt of Form 15-G/15-H. This will help in building a system of accountability and customers will not be put to inconvenience due to any omission on part of the banks.

Yours faithfully,

(Rajesh Verma)
Chief General Manager

More Under Fema / RBI


  1. Sonali Dutta says:

    TDS with interest of Rs.5136.29 has been deducted by United Bank of India,Shyamnagar Branch Pin-743127 against F.D Nos.0975100296434 and 0975100298261 despite submitting 15G for f.y.2014-15.I have submitted several complain to branch as well as Grievance more than 7 times since 13/4/2017 but not yet received deducted amount.My husband is a retired sick senior citizen.The behavior of lady branch manager is very rude.My husband became sick by attending several times to the branch.Branch manager intentionally harassing my husband since 13/4/2017.

  2. vijayendra s says:

    The depositor who has invested under cumulative schemes will not get the assured amount but much less because interest is calculated only on the outstanding balance after TDS. Here again it is the depositor who is the loser. Banks should at least pay the amount of interest less TDS thereon to the depositor by suitably modifying their software.

  3. V. SHRI KUMAR says:

    Referring to many instances of deducting TDS by bank staff despite receiving and acknowledging Form 15G/15H or refusing to acknowledge the receipt with full signature and employee no, it is better to immediately lodge complaint to the Chairman of the respective bank for faster results. In an unfortunate event of no satisfactory action with a reasonable time, say, 1 month, it is advisable to prefer a complaint with the local Consumers’ Forum, which a powerful body to get the refund and also penalty.

    V.Shri Kumar

  4. Bachu Radhamma says:

    Iam from Kurnool,senior citizen and deposited fd with IOB,Kurnool last four years back and not deducted any TDS for the first three years since they have filed my form 15 H but unfortunately last year april they have misplaced submitted form 15 H and deducted 20% straight away from interest by the banker.

    I also submitted Form 15H to Indian Overseas Bank,Kurnool branch at the time of opening the FD and on every year in the month of April.When ever i request for acknowledgement,they refused to acknowledge the documents,surprisingly last year without verifying the files, and without enquiring and without informing me , directly they have deducted 20% TDS on the interest income around Rs.5223.

    I tried my level best to get the TDS form for refund, but no use.Manual TDS crtificate has issued and not entereed the data in the system , I have submitted the same in IT office for refund,but so far neither refund received from IT office nor any information received.Due to mistake of the bank people i have lost more than Rs,5,000 interest.Please help me how to proceed to get reimbursement from the bank and to whom I have to complaint.This is the mistake of both bank manager as well as bank staff.Please tell me how to proceed further.

    1. r v rao says:

      as regards ms. bachhu radhamma case,pl. note banks can refund excess tds only before the tax deducted is deposited with the govt.This takes normally within 7 days from the end of the month in which deduction is made. SO NO POINT IN EXPECTING BANKS TO REFUND TDS NOW IF IT IS MORE THAN 7 DAYS AFTER THE MONTH END.

  5. r v rao says:

    1.) Immediately ,after form 15/g or h is submitted, a customer can request the bank, to enter ( the fact that form 15G/H is submitted and therefore no need to deduct interest) in the savings bank account where interest is credited periodically or in the F.D account where interest is cumulated till maturity.

    2.) unless the above info. is fed in the computer ,the system automatically deducts interest.

    3.)infact banks – as a matter of abundant caution ask the depsitor to submit the forms twice. once when made ,secondly in every april.this will help the customer ,though senior people find it troublesome.

    4.)the most important thing to remember here is that inspite of submitting these forms 15 G/H , if the annual interest payment by the bank exceeds the annual income tax exemption limit of say -currently Rs 2.5 lacs for senior citizens and Rs 2 lacs for others,the banking software system automatically deducts tax @applicable rates on that part of the interest amount which exceeds the annual income taxable limit . so better to spread the deposits over a couple of banks, for calculation sake assume banks pay @9%interest P.A (senior citizens @9.5%).accordingly put the deposit amount in 2 /3 or more banks based on quantum of deposit.banks are bound to deduct TDS when annual interest exceeds RS.ten thousands .

  6. Kirit Bhagat says:

    It is good but it is seen that whenever an acknoledgement is given it is simply stamped and/or initialed by the concern official.
    It must be made compulsory that an acknowledgement is given by the concern official with bank,s stamp as well full signature with signatere code and name of the official.

  7. Bhupal Singh says:

    The facts stated in the circular are correct. It has happened with me also. In the Form 16A given to me , my bank has shown TDS deducted and then refunded by reverse entry in many cases, inspite of my having submitted Form 15G in time i.e. during April month in the beginning of the relevant financial year . Some cases of TDS deducted have not been reversed i.e. credit for wrong deduction has not been provided.

  8. PVSN Murty says:

    Now most of the big banks are having core banking IT. Services . Banks should make a provision in the interface to update and intimate customer by SMS or so . 2) Like PAN card status , customer must be able to view the status of this 15g/15h through Internet banking .

  9. CA. Subhash Chandra Podder, says:

    All banks are not following the norms. Even they are not giving forms may it be 15H/ 15G in duplicate and also giving old forms ( State Bank Of India – Dum Dum Branch – Kolkata , West Bengal ) and United Bank of India – Dum Dum Branch , Kolkata – West Bengal ) .they even not bother to verify the details in the presence of Customers , .In this way the banking is running .

    CA. Subhash Chandra Podder , FCA

  10. Suresh chandra says:

    My wife has account with HDFC and has some amount in FD. Every year she fills out the forms and still the bank deducts tax on interest. She is a Sr. Citizen and continues to loose due to irresponsibility of the bank staff.
    I wonder if the acknowledgement with out a penalty clause will have the required results. In such case the bank should be made responsible for the refund and credit deduction to account.

  11. Ganesh says:

    Both Form 15G and Form 15H contain the sentence “Forwarded to the Chief Commissioner or Commissioner of Income-tax….” in Part II (FOR USE BY THE PERSON TO WHOM THE DECLARATION IS FURNISHED)

    Is it mandatory for the Bankers to submit these forms to the CCIT or CIT for non-deduction of tax on interest paid to the depositors or merely keeping the forms with themselves is sufficient?

  12. Ravindra says:

    By formalization of giving of acknowledgment of receipt of form 15H/15 G , the the RBI thinks that inconvenience will not be caused to the depositor ?
    The consequences of wrongful deduction of tax will still be the burden of the depositor. simultaneous clause must be put by RBI that penalty equal to twice the amount of tax deducted will be paid to the depositor by the bank, only then will banks behavior change and improve. else these are just letters sent to satisfy RBI’s conscience of being a regulator.

  13. R Balasubramanian says:

    This year,I have seen SBI returning the 2nd copy of form 15G/15H duly stamped while receiving the declaration forms.
    R Balasubramanian, Chennai-59.

Leave a Comment

Your email address will not be published. Required fields are marked *