CPC (CBS) Reply regarding deduction of TDS for SCSS interest

 CPC (CBS) Reply regarding deduction of TDS for SCSS interest

Sir/Madam,

15H updation done during previous year is valid till 31/03/2024 only. No TDS was recovered on 31/03/2024 for accounts linked with 15G/15H.

Some SOLs are generating TDS report from 01.03.24 to 03.04.2024. This is incorrect as it encompasses two financial years. Based on such reports, SOLs should not interpret that the recovery happened on 31/03/2024.

Some customers / SOLs are reporting that the interest paid in April-2024 pertains to previous FY and hence TDS should not be deducted; this is not the approved functionality. IT rulings may please be referred to.

SOLs / CPC have to check all the above points for the reported accounts to ascertain whether the TDS recovery is proper or not.

If TDS is deducted for any customer getting interest (total of all his/her SCSS accounts put together) below the applicable threshold limits, ticket should be raised with relevant screenshots from HTDSIP for the said CIF.

15H/15G flag gets reset to NONE during every EOY. As 15H/15G was not linked for current FY after the reset, TDS was recovered on 03/04/2024, only for those customers exceeding the threshold limit of Rs. 40000 (non-seniors) and Rs.50000 (seniors), during the first payout itself.

This is happening as per the existing functionality and is not an issue.

During previous years, the investment limit was 15 lakhs and hence interest paid in the first quarter did not exceed threshold limits. So, there was no TDS recovery happening on the first interest payout of the FY. If any customer has registered complaint on this point, then the same may be referred to Directorate; there is no functionality for handling this scenario by accepting 15H/15G in advance.

Thanks,

CEPT CBS Team.