Deduction/Non-deduction of TDS in SCSS accounts in CBS post offices – Deptt. of Posts order dated 15.09.2021
Deduction/Non-deduction
of TDS in SCSS accounts in CBS post offices – Deptt. of Posts order dated
15.09.2021
No. FS-13/7/2020-FS
Government of India
Ministry of Communications
Department of Posts
(F.S.Division)
Dak Bhawan New Delhi-110001
Dated: 15.09.2021.
To,
All Head of
Circles/Regions,
Sub: – Deduction/Non-deduction of TDS in SCSS
accounts in CBS post offices reg.
Sir/Madam,
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
of SCSS account holders should be seeded with valid PAN and interest on SCSS
account is taxable.
·
TDS
code is configured in CIF level for SCSS account holders. It should be TDSNR/TDSNS only
and not as NOTAX
·
Tax
liability will be calculated based on the age of customer and interest payable
for the financial year
·
Tax
exemption is applicable only if the account is seeded with 15H/15G
·
TDS
code NOTAX/TDSNR will be converted TDSNS on the date of
customer reaching 60 years of age, by a batch process.
·
If
PAN is invalid, TDS code will be converted as NOPNS by the
batch process.
·
CBS
post offices shall ensure that SCSS accounts are updated 15H/15G for customers
who have submitted form 15G/15H for current financial year.
·
Updation of form 15G/15H and PAN shall be done on or before
29th September 2021, as quarterly interest payout & TDS recovery will
happen during EOD of 29/09/2021 (SCSCM / SCDEF / SCVRS accounts) and
30/09/2021 (SRSCM / SRDEF / SRVRS accounts).
·
TDS
recovery gets reported to CSI-GL on 30/09/2021 and refund will not be possible
after 30/09/2021.
·
15H/15G
should be updated for such accounts using CSCAM menu and verified without fail.
·
Once
15H/15G is entered. tax category at account level will get updated to ‘No Tax’.
·
Tax
recovery matrix is shown below:
|
CIF level |
Account level |
TES Recovery based
on total interest payable for all the accounts under a CIF |
|
NOTAX |
TDS/No Tax |
NIL (Incorrect as
per ruling) |
|
NOPAN |
TDS |
20% |
|
NOPAN |
No Tax (15H/15G) |
NIL |
|
NOPNS |
TDS |
20% |
|
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.
Yours Sincerely,
(Devendra Sharma)
Assistant Director (SB-II)
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