Even after submitting form 15G/15H for the current Financial Year, TDS has been deducted from SCSS account holders’ interest payments.

SB Order No. 37/2021

F. No. FS-13/7/2020-FS
Government of India
Ministry of Communications
Department of Posts
(Financial Services Division)

Dak Bhawan New Delhi-110001
Dated: 22.11.2021.

To,

All Head of Circles/Regions,

Subject: Deduction/ Non-deduction of TDS in SCSS accounts in post offices reg.

Sir/Madam,

Reference is invited to this office even letter no. dated 15.09.2021, in which the detailed guidelines were issued for configuration of TDS related parameters in Finacle in respect of SCSS accounts.

2. This office 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.
3. I am directed to say that Circles should take necessary action for configuration of TDS/Form 15G/15H/NOPAN status in all SCSS accounts and CIFs.
4. The 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: –

• Whenever the SCSS account holder submits form 15G/15H, the concerned post office shall ensure that the details in customers CIF and SCSS account as prescribed in the table below.
• All CBS post offices shall ensure that all form 15G/15H already received are updated in Finacle, as TDS deduction is based on the information available in CIF and Account level.
• CIF of SCSS account holders should be seeded with valid PAN.
• 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 15G/15H
• TDS code NOTAX/TDSNR will be converted as 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 NOPAN/NOPNS by the batch process in Finacle.
• Updating of form 15G/15H should be done on the date of receipt of form from the account holder.
• 15G/15H should be updated using CSCAM menu and verified without fail.
• Once 15G/15H is entered, tax category at account level will get updated to ‘No Tax’.

5. The following configuration should be made by all the CBS post offices for configuration of TDS or non-deduction of TDS or NO PAN in all existing SCSS accounts or at the time of opening of new account in SCSS as the case may be:-

6. 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.

7. Non-CBS post offices shall also deduct the TDS from the SCSS account holders aged below 60 years in accordance with the above revised limit.

8. 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. Quoting invalid PAN /wrong PAN number may attract penalty u/s 272B of Income Tax Act-1961.

9. It is requested to circulate these guidelines to all Post Offices for information, guidance and ensure necessary action.

10. This is issued with approval of the competent authority.

Yours Sincerely

(Devendra Sharma)
Assistant Director (SB-II)

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SB Order No. 19/2020

F. No. 113-02/2019-SB
Govt. of India
Ministry of Communications
Department of Posts
(Financial Services Division)

Dak Bhawan, New Delhi-110001
Dated: 26.05.2020

To,

All Head of Circles/Regions

Subject : Regarding extending the prescribed time limit of one month post retirement for retirees to invest in Sr. Citizen Savings Scheme (SCSS).

Madam / Sir,

The undersigned is directed to inform that vide O.M. No. 3/3/2019-NS (Pt.1) dated 21.05.2020, the MoF (DEA) has decided to relax some regulatory provisions to safeguard the interest of Small Savings Depositors in view of the lockdown in the country due to COVID-19 pandemic.

Also check: Guidelines for Tenure Transfer for the year 2020-21 to ensure economy in expenditure under TA/TP

2. Accordingly the following relaxation guidelines in reference to Sr. Citizen Savings Scheme (SCSS) are issued with immediate effect regarding :

• Individual retired (within the age bracket 55-60 years) on Superannuation or otherwise and got retirement benefits in February-2020, March-2020 and April-2020 are eligible to open SCSS account up to 30th June, 2020.
• Personnel from Defence Services retired and got retirement benefits in February-2020, March-2020 and April-2020 are also eligible to open SCSS account up to 30% June, 2020 under the prescribed eligibility conditions applicable to them.

3. It is requested to circulate it to all concerned for information and necessary action. The same may also be placed on the notice boards of the Post Offices in public area.

Also read: Compensation of Rs.10 lakhs to Postal Employees to cover death due to COVID-19

4. This issues with the approval of Competent Authority.

Yours Faithfully,

( Devendra Sharma )
Assistant Director (SB)

The post Extending the prescribed time limit of one month post retirement for retirees to invest in Sr. Citizen Savings Scheme appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

F.No 79-01/2016-SB
Government of India
Ministry of Communications
Department of Posts
DakBhawan, Sansad Marg,

New Delhi-110001
Date: 29.06.2018

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject – Deduction of TDS in respect of Senior Citizens who have Invested In Sr.Citizen Savings Scheme regarding.

Sir / Madam,

I am directed to say that Government of India has amended Suction 194A of Income Tax Act 1961 through Finance Act 2018 and Inserted below new Proviso below Sub Section 3 of Section 194A:-

[Provided also that in case of payee being a senior citizen, the provisions of sub-clause (a), sub-clause (b), and sub-clause (c) shall have effect as if for tho words “ten thousand rupees”, tho words ‘fifty thousand rupees” had been substituted.

Explanation.- For the purposes of this clause, “senior citizen” means an Individual resident In India who is of the age of shay years or more at any time during the relevant previous year;)

2. With this amendment, now TDS will not be applicable on the total aggregated Interest Income up to Rs.50.000/- in a Financial year payable In case of all SCSS Accounts opened by Senior Citizens of the age of 60 years and above (who attained age of 60 years anytime during the previous financial year I.e 2017-2018). However, this limit will not be applicable to those SCSS Account holders who had opened SCSS Accounts under the relevant provisions of relaxed SCSS Rules for (I) individuals who attained the age of 65 years or more but less than 60 years and retired on superannuation or (ii) Personnel of Defence Services (excluding Civilian Defence Employees) and not attained age of 60 years during previous financial year i.e 2017.18). For such account holders, current limit of Re.10,0001- shall continue.

3. Rules reisting to submission of Form 15G (by those who are below the age of 60 Years) and 15H(who are of 60 Years or more age) are not changed. However, due to change of tax exemption limits for certain categories, Form 15G or 15H can be accepted If total Interest payable in a Financial Year of all SCSS Accounts of an individual SCSS account holder is within the Exemption Limit mentioned below:-

4. It Is requested to circulate this amendment to the concerned staff for Information and necessary action Necessary changes in CBS and Sanchaya Post application* an being canted out to implement the lame In CBS Post Offices

This Meuse with the approval of competent authority

Yours Faithfully,
(P.b. Meena)
Assistant Director(SB-I)

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