Deduction/Non-deduction of TDS in SCSS accounts in post offices

1. 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: -

i. 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.

ii. 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.

iii. CIF of SCSS account holders should be seeded with valid PAN.

iv. TDS code is configured in CIF level for SCSS account holders. It should be

TDSNR/TDSNS only and not as NOTAX

v. Tax liability will be calculated based on the age of customer and interest

payable for the financial year

vi. Tax exemption is applicable only if the account is seeded with 15G/15H

vii. TDS code NOTAX/TDSNR will be converted as TDSNS on the date of

customer reaching 60 years of age, by a batch process.

viii. If PAN is invalid, TDS code will be converted as NOPAN/NOPNS by the

batch process in Finacle.

ix. Updating of form 15G/15H should be done on the date of receipt of form from

the account holder.

x. 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’.

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