TDS Deduction in Post Office SCSS (Senior Citizen Savings Scheme) accounts. This is regarding updation of form 15H and PAN Number in India Post (Post Office) SCSS accounts.
i) TDS will be deducted in this quarter for SCSS customers who receive more than Rs. 50,000 as interest per annum. If a customer has a cumulative of Rs. 6 lacs & above in SCSS a/c, TDS would be deducted unless form 15H is given by the customer. To avoid this, form 15H must be obtained from the eligible customers and each account must be marked as "15H & No tax" in Finacle. The list of SCSS account opened can be generated through HACSP menu for ready reference.
ii) Also, ensure that all SCSS accounts must be seeded with PAN number as if an account does not have PAN Number, TDS would be deducted irrespective of interest amount.
Since, the process has to be completed before 29.09.2022(which is the cutoff date in Finacle for TDS deduction), it is requested to circulate the instruction through email/whatsapp to all offices/SPMs and ensure compliance is received from the SPMs.
This activity is important to avoid inconvenience to the senior citizen customers and also avoid public grievances as this office is receiving this TDS related complaints frequently.
Useful For SCSS TDS
With PAN
For age above 60 TDSNS
For age below 60 TDSNR
Without PAN
For age above 60 NOPNS
For age below 60 NOPAN
As PAN is mandatory, it is better to update PAN and give tax code TDSNS or TDSNR appropriate to age.
Without pan validation, we can not enter 15 H.
If consolidated interest is more than 50000 and 15H not given than 10% TDS will be deducted.
