SB Order No.4/2007 Deduction of TDS in case of Sr. Citizen Saving Scheme 2004 during 2007-2008 with effect from 1.6.2007

SB ORDER NO. 4 /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.

Date:       25.5.2007

To

All Heads of Circles/Regions

Addl. Director General, APS, New Delhi.

Subject:- Deduction of TDS in case of Sr. Citizen Saving Scheme 2004 during 2007-2008 with effect from 1.6.2007. 

Sir / Madam, 

The undersigned is directed to say that the Government has amended Section 194-A of Income Tax Act through Finance Act 2007. 

2. Accordingly, from 1.6.2007, TDS on a Sr. Citizen Saving Scheme 2004 account is now to be deducted for if the interest paid or payable exceeds Rs. 10,000/- during the financial year. TDS Shall be made from the entire amount payable if it exceeds Rs. 10,000/-. 

3. The rate of TDS and surcharge will be as under:- 

In case of a person other than a company 

a. Person is resident of India-- 10% 

b. Others-- 20% 

Surcharge 

The amount so deductible shall be enhanced by surcharge calculated as per following rate:- 

a. In case of Individual, HUF, Association of Person and body of individuals— 10%, if the interest paid/payable exceeds Rs. 10 lac during the financial year. 

Education Cess 

The amount of TDS+Surcharge shall be further enhanced by 3% of TDS+Surcharge on account of education cess. 

4. Other instructions circulated vide SB Order No. 15/2006 dated 26.6.2006 regarding declaration in Form 15-G and Form 15-H will remain the same. 

5. It is requested that this may kindly be brought to the notice of all post offices including sub post offices for information, guidance and necessary action. 

Yours faithfully, 

(Kawal Jit Singh) 

Assistant Superintendent Posts (SB&CC)

Copy to-

1. Director of Audit (P&T), Delhi. 
2. All Directors/Dy. Directors of Accounts, Postal 
3. Director, Postal Staff College, Ghaziabad.
4. All Directors, Postal Training Centers.
5. DDG(FS)/DDG(VIG)
6. Director (FS)/VIG
7. AD Inspection/PF/Vigilance/Postal Accounts Section
8. All Accounts Officers ICO(SB)
9. All recognized Staff Unions and Associations.
10. Min. of Finance (DEA) NS-II section, North Block, New Delhi.
11. PS to Member (D)