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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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 17th September, 2021

INCOME TAX

S.O. 3815(E). – In exercise of the powers conferred by sub-section (1F) of section 197A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that no deduction of tax shall be made on the following payment under section 194A of the said Act, namely payment in the nature of interest, other than interest on securities, made by a scheduled bank (hereinafter the “payer”) located in a specified area, to a member of Scheduled Tribe (hereinafter the “receiver”) residing in any specified area, as referred to in clause (26) of section 10 of the said Act, subject to the following conditions:

• (i) the payer satisfies itself that the receiver is a member of Scheduled Tribe residing in any specified area, and the payment as referred above is accruing or arising to the receiver as referred to in clause (26) of section 10 of the said Act, during the previous year relevant for the assessment year in which the payment is made, by obtaining necessary documentary evidences in support of the same;
• (ii) the payer reports the above payment in the statements of deduction of tax as referred to in subsection (3) of section 200 of the said Act;
• (iii) the payment made or aggregate of payments made during the previous year does not exceed twenty lakh rupees.

Explanation.- For the purposes of this notification, the expression “scheduled bank” shall have the same meaning as assigned to it in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934).

2. This notification shall come into force from the date of its publication in the Official Gazette.

[Notification No. 110/2021/F. No. 275/27/2021-IT(B)]

ARVIND KUMAR MISHRA, Under Secy.

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GOVERNMENT OF INDIA
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW DELHI-1 10006

No. CPAO/IT&Tech/Gallantry Award/26/2020-21/06

Dated- 12.05.2021

Office Memorandum

All the Authorized Banks involved in disbursement of pension are to draw their attention towards provisions of Section-10, clause 18 (i) of Income Tax as notified vide Ministry of Finance, Department of Revenue, CBDT Notification dated 24th November, 2000. This notification provides for exemption of application of Income Tax for the pension received by an individual who has been in the service of the Central Government or State Government and has been awarded Gallantry Award as may be specifically notified by the Central Government from time to time. Family pension received by any member of the family of such individuals is also exempt. The referred clause also clearly indicates that no deduction of income tax should be made in the case of recipients of such awards.

2. Despite these clear provisions of the Act, it has come to notice of this office that the above provision of Income Tax is not being complied with in its letter and spirit by the certain pension disbursing banks.

3. All the pension disbursing banks are, therefore, required to ensure that the Income Tax at source is not to be deducted from pension in respect of Gallantry Awardee as per the provision of Section 10 clause 18(i) of the IT Act, CBDT Notification dated 24th November, 2000. The provision of Income Tax is to be followed scrupulously without fail by all pension Disbursing Banks.

This issues with the approval of the Controller General of Accounts.

(Rokhum Lalremruata)
(Chief Controller of Pensions)

To,
1. All CGMs/ GMs (Govt. Business) of Authorized Banks/ Pension Disbursing Banks(as per list)
Copy for information to,
1. Joint CGA(ARPR), O/o CGA

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PAN of lender (PAN of Bank) required, if interest on housing loan is claimed under Section 24(b) of Income Tax for FY 2020-21

Principal Controller of Defence Accounts
(Central Command)
Cariappa Road, Lucknow Cantt.-226002

No ANAV/Pay/Circular/2021-22/1

Date- 28/04/2021

The Officer-in-charge
All Sections Main Office
All Sub Offices under the PCDA (CC) Lucknow

Sub: PAN of lender (PAN of Bank), if interest on housing loan is claimed under section 24(b) FY 2020-21.

***

Please find list in Annexure-A of officers and staff who have claimed rebate under Section 24(B) in FY 2020-21.

As per provisions in Income Tax act, PAN of lender (PAN of Bank) is to be uploaded at TIN NSDL and it has been made mandatory, if interest on housing loan is claimed under section 24(b).

Hence, it is requested to obtain the details from concerned officer and staff and furnish PAN of lender in following format so that yearly data (Quartery Q4 FY 2020-21) can be uploaded to Income Tax department.

In this regards, it is requested that same may be received by 05/05/2021 positively to the email ID of AN-IV Section.

Jt. CDA has seen.

Accounts Officers (AN-IV)

Source: http://pcdacc.gov.in/download/circularsnew/an4_2904.pdf

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04 FEB 2020

The Finance Bill, 2020 proposed to remove Dividend Distribution Tax (DDT) at the level of Company/ Mutual Fund and proposed to tax the same in the hands of share/ unit holder. It was also proposed to levy TDS at the rate of 10% on the dividend/ income paid by the Company/ Mutual Fund to its share/unit holder if the amount of such dividend/ income exceeds five thousand rupees in a Financial Year.

Also check: Budget 2020 – Personal Income Tax and tax simplification

Queries have been received to the effect that whether under the proposed section 194K, the Mutual Fund would be required to deduct TDS also on the capital gains arising on redemption of units. It is hereby clarified that under the proposed section, a Mutual Fund shall be required to deduct TDS @ 10% only on dividend payment and no tax shall be required to be deducted by the Mutual Fund on income which is in the nature of capital gains. Necessary clarification, if required, shall be proposed in the relevant provision of the law.

PIB

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SB Order No. 02/2020

F.No 109-27/2019-SB
Govt. of India Ministry of Communication
Department of Posts (F.S. Division)

Dak Bhawan, New Delhi-110001
Dated: 09.01.2020

To,

All Head of Circles / Regions
Addl. Director General, APS, New Delhi

Subject :- Deduction of TDS in respect of Cash Withdrawal above Rs. 1 Crore by an account holder of National Savings Schemes regarding .

Sir / Madam,

The undersigned is directed to inform that Government of India has inserted Section 194 N in the Income Tax Act, 1961, through Finance Act (No.2) 2019 for deduction of TDS @2% on cash withdrawals in excess of Rs. 1 crore in a year, from 1.9.20 19, and the new provision mentioned in Section 194 N is applicable from the financial year 2019·20. Text of the new Section is reproduced below :-

Payment of certain amounts in cash.

194 N. Every person, being,-

• a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act);
• a co-operative society engaged in carrying on the business of banking; or
• a post office,

Also check: National Savings Certificates Scheme 2019 – Gazette Notification

who is re possible for paying any sum, or, as the case may be, aggregate of sums, in ca h, in excess of one crore rupees during the previous year, to any person (herein referred to as the recipient) from one or more accounts maintained by the recipient with it shall, at the time of payment of such sum , deduct an amount equal to two per cent of sum exceeding one crore rupees, as income tax:

Provided that nothing contained in this sub-section shall apply to any payment made to,

• the Government;
• any banking company or co-operative society engaged in carrying on the business of banking or a post office.
• any business correspondent of banking company or co-operative society engaged in carrying on the business of banking, in accordance with the guidelines issued in this regard by the Reserve Bank of India Act, 1934 ( 2 of 1934);
• any white label automated teller machine operator of a banking company or co­ operative society engaged in carrying on the business of banking, in accordance with the authorization issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007 (51of 2007);
• such other person or class of persons, which the Central Government may, be notification in the Official Gazette, specify in consultation with the Reserve Bank of India ;

Further Clarification issued by CBDT on 30.8.2019
(extract from press release of CBDT dated 30.08.2019)

“…..The CBDT, having considered the concerns of the people, hereby clarifies that section 194N inserted in the Act, is to come into effect from 1st September, 2019. Hence any cash withdrawal prior to 1st September, 2019 will not be subjected to the TDS under Section 194N. However, since the threshold of Rs. 1crore is with respect to the previous year, calculation of amount of cash withdrawal for triggering deduction under section 194N shall be counted from 1st April, 20 19. Hence, if a person has already withdrawn Rs. 1crore or more in cash up to 31st August , 2019 from one or more accounts maintained with a banking company or a cooperative bank or a post office, the 2% TDS shall apply on all subsequent cash withdrawals made on or after 1st September, 2019.”

Also read: National Small Savings Schemes 2020 interest rate

2. With this amendment, now TDS @2% will be applicable on all cash withdrawals above Rs. One Crore taken by an account holder in his/ her all type of Small Savings Schemes Accounts / Certificates taken together, from 1.4.2019 onwards. However, for the current financial year (2019-20) as per clarification issued by CBDT, TDS will be deducted on cash withdrawals taken on or after 1.9.2019, even if cash withdrawals are taken in excess of Rs.1 Crore from 1.4.2019 to 31.8.2019. The TDS @ 2% is to be deducted on all subsequent cash withdrawal (from 01.09.2019) to be taken by a customer who has taken cash withdraw als in excess of Rs. lcrore during 2019-20 in his/ her all accounts.

3. Necessary changes in FINACLE will be done in due course to automatically deduct TDS at the time of such cash withdrawal. Till these changes are done, CEPT Team will inform details of such Account Holders in the first week of every month to the respective CPC which will inform the concerned Post Office to deduct TDS @2%. Post Offices have to ensure that PAN number of such account holder are invariably taken and fed in Finacle. TDS so deducted should be accounted under Section 194N and incorporated in TDS return of HO (for HO and its SOs). Account holder should be informed of such deduction at the time of cash withdrawal.

4. It is requested to circulate this amendment to all concerned for information and guidance and necessary action.

5. This issues with the approval of Competent Authority.

Yours Faithfully,
(Devendra Sharma)
Assistant Director (SB)

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The Income Tax department has revised Form 16 by adding various details, including income from house property and remuneration received from other employers, thereby making it more comprehensive to help check tax avoidance.

It will also include segregated information regarding deductions under various tax saving schemes, investments in tax savings instruments, different allowances received by the employee as well as income from other sources.

Form 16 is a certificate issued by employers, giving details of employees’ TDS (tax deducted at source) usually by mid June and is used in filing I-T returns.

The revised Form, which has been notified by the Income Tax department, will come into effect from May 12, 2019. This means the income tax returns for financial year 2018-19 will have to be filed on the basis of revised Form 16.

Among other things, the revised Form 16 will also include details of deductions in respect of interest on deposits in savings account, and rebates and surcharge, wherever applicable.

The I-T department has already notified income tax return forms for fiscal 2018-19. Salaried class and those who do not have to get their accounts audited, will have to file their ITRs by July 31 this year.

Meanwhile, the income tax department has also modified Form 24Q, which is furnished by employer to the tax department. It will include additional details like Permanent Account Number (PAN) of non-institutional entities from whom the employee has taken loan for buying or constructing housing property.

Nangia Advisors (Andersen Global) Director Sanjoli Maheshwari said the Form 16 and 24Q have been amended with an intent to make them more elaborative and informative. The same has been done in order to bring the Forms in parity with latest changes made in ITR Forms such as disclosure of standard deduction and exemptions claimed under section 10.

“Earlier, where the disclosure of various deductions were mentioned in a consolidated manner, ranging from 80C, 80CCD, 80E, 80G would now be required to be disclosed separately. These specific disclosures would provide ease to the tax authorities in understanding the various components of income of the taxpayer and thereby, facilitating the conduct of scrutiny more precisely,” Maheshwari said.

The changes in Form 24Q will further help in identifying any fabricated transaction undertaken with an aim of tax avoidance, she added.

PTI

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21 JAN 2019

The Central Board of Direct Taxes (CBDT) has stated that certain news items that appeared in a section of media regarding enmasse issue of prosecution notices to small companies for TDS default are completely misleading and full of factual inaccuracies. CBDT clarified that Mumbai Income Tax TDS office has issued prosecution Show Cause Notices only in a limited number of big cases where more than Rs. 5 lakh of tax was collected as TDS from employees etc and yet the same was not deposited with the Income Tax Department in time.

CBDT said that some defaulter companies and vested interests are deliberately misleading the media to thwart action against themselves. Having deducted tax from employees and other taxpayers and not depositing the same in time in the Government Treasury is an offence punishable under the law. It also affects the interest of the employees from whose salary the tax has been deducted by the unscrupulous employers who have not deposited the same in time in the Government Treasury. If the TDS is not deposited in time, the employee would be ineligible for claiming credit of the tax deducted when he files his own return.

CBDT stated that in last one month, only in 50 big cases prosecution notices have been issued by Mumbai IT TDS office. Out of these, in 80% of the cases the TDS tax default is above Rs. 10 lakh and in 10 % cases, TDS default is between Rs. 5 to Rs.10 lakh. In the remaining 10% cases, TDS default is of more than Rs. 1 crore as detected in the survey. Prosecutions have also recently been launched against 4 big business houses where more than Rs 50 Crore of tax was collected by them from the tax payers and yet not deposited with the Government in time. But such legal and rightful action is being unfortunately projected in the media by the vested interests as if the Department is going overboard to harass small employers.

It would be pertinent to note that in a country of 130 Crore people where around 6 Crore returns are filed every year, only a total of 1400 prosecutions have been filed so far for various offences under the Income Tax Act during this financial year. This, by any stretch of imagination, cannot be termed as mass harassment by the income tax department. Therefore, to say that prosecution notices enmasse have been sent to taxpayers for minor defaults is completely incorrect and misleading, the CBDT added.

PIB

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ANNEXURE-I

SOME ILLUSTRATIONS

Example 1

For Assessment Year 2018-19

(A) Calculation of Income tax in the case of an employee(Male or Female) below the age of sixty years and having gross salary income of:

i) Rs.2,50,000/- ,

v) Rs. 1,10,00,000/-

(B) What will be the amount of TDS in case of above employees, if PAN is not submitted by them to their DDOs/Offices:

Computation of Total Income and tax payable thereon

* After rebate of Rs 2500 u/s 87A

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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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