SB ORDER NO. 14 /2007
No.79-8/2004-FS (Vol-V)
Government of India
Ministry of Communications & IT
Department of Posts
Dak Bhawan, Sansad Marg,
New Delhi-110001,Dated: 20.10.2007
To
All Heads of Circles/Regions
Addl. Director General, APS, New Delhi.
Subject:- Deduction of TDS and issue of TDS certificate for the interest paid to the depositors of Senior Citizen Savings Scheme accounts – Procedure regarding
Sir / Madam,
The undersigned is directed to say that the rates of Tax / Surcharge and Education Cess to be deducted on the interest paid to depositors w.e.f. 01.06.2007 were intimated vide this office letter no. 79-08/2004-FS (Vol.-V) dated 25.05.2007 (SB Order No.4/2007). No tax is to be deducted if the interest paid or payable does not exceed Rs.10,000/- during the financial year. Tax shall also not be deducted at source on payment of interest payable from 1.6.2007 to resident individuals who furnish a declaration in writing (in duplicate) in form 15-G up to the amount of withdrawal of Rs. 1,10,000/-
per year (for men) and Rs. 1,45,000/- per year (for women). No tax will be deducted on payment of interest to senior citizens of 65 years of age or above who furnish declaration in writing (in duplicate) in Form 15-H.
2. The TDS certificate is to be issued to the depositor in Form 16-A within a week after the expiry of two months from the month in which tax is deducted OR a consolidated TDS certificate for the whole financial year may be issued within one month of the end of the financial year on request from the payee. In this form TAN (Tax deduction Account Number) of the authority issuing the certificate is required to be mentioned. Under the scheme the Sub Postmasters will also issue the TDS certificate and they will mention the TAN (Tax deduction Account Number), of the Postmaster allotted to them by the Income Tax Authorities.
3. The Form 15-G or 15-H as applicable is required to be furnished by the depositors once in a financial year in respect of interest drawn during the financial year. The form is to be furnished in duplicate. It should be ensured that the depositor has given his complete postal address in Form 15 G or Form 15-H.
4. In order to keep a record of the tax deducted and TDS Certificate issued, the Head and Sub Post Offices will follow the following procedure:-
(i) The tax deducted on the interest paid / payable will be noted in remarks column of the pass book/ledger and at the top of the withdrawal form under the dated signature of the APM / SPM.
(ii) After the close of the day, a schedule in the following form will be prepared from the withdrawal forms in the HO / SO.
Schedule of tax deducted on the interest paid in SCSS accounts on ……………..at…………HO/SO
Date / Stamp Signature of PM /SPM
(iii) The schedule will be prepared in triplicate in sub offices and two copies will sent to HO alongwith forms 15 G and 15 H in support of amount charged in the daily account and SO account. The third copy of the schedule will be filed in a separate guard file to be opened for each financial year. In the Head Office the consolidated schedule will be prepared in triplicate incorporating the transactions of the HO and sub offices as a whole.
(iv) The amount of tax deducted will be shown on the receipt side in all the account records under a separate head “Tax deducted on the interest paid in SCSS accounts.”
(v) In HO, after the close of the month, one copy of schedule will be sent to the Postal Account Office along with cash account. The second copy will be sent to the Commissioner of Income Tax along with Forms 15G or 15H. The third copy will be retained in HO. The schedules will be checked by the APM incharge and preserved up to 5 years.
(vi) In case of SCSS, TDS is deducted many times in a financial year. TDS certificate in form 16A should be issued within a week after the expiry of two months from the month in which tax is deducted OR a consolidated TDS certificate for the whole financial year may be issued within one month of the end of the financial year on request from the payee. The office at which account stands opened i.e either SO or HO will issue this certificate and TAN number of postmaster of HPO will be noted in the form 16A.
(vii) TDS certificate in form 16A should be prepared in duplicate and receipt of the depositor should be obtained on the office copy. The guard file containing the office copied of certificates issued will be preserved for 5 years.
5. It is requested that the above procedure may kindly be brought to the notice of all the sub and head post offices for information, guidance and necessary action.
6. This issues with the apprval of DDG(FS)
Yours faithfully,
(Kawal Jit Singh)
Assistant Superintendent Posts(SB&CC)
Copy to:-
1. Director (Fgn.Post & Mkt) O/o Pr. CPMG T..N Circle.
2. Director of Audit (P&T), Delhi.
3. All Directors/Dy. Directors of Accounts, Postal
4. Director, Postal Staff College, Ghaziabad.
5. All Directors, Postal Training Centres.
6. DDG(VIG)/DDG(Estt.)
7. ADG(BS)/ADG(Pension)/ADG(CB)/ADG(SBC)
8. AD /Inspection/PF/Vigilance/Postal Accounts Section
9. All Accounts Officers ICO(SB)
10.All recognized Staff Unions and Associations.
11.Min. of Finance (DEA) NS-II section, North Block, New Delhi.
12.PS to Member (I&FS)
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