SB Order 37/2021- Hello DOP family, a new SB order has also been issued by the postal directorate. It is the 37th SB order for the year 2021. We know that a total of 36 SB orders have already been issued. You can check all SB orders 2021 from here. Here I am going to tell you about SB order 37 for the year 2021. 

sb order 37/2021


What is SB Order no. 37/2021?

SB order 37/2021 is regarding deduction/Non-deduction of TDS in SCSS accounts in post offices. It is having ruling for deduction/Non-deduction of TDS in SCSS accounts in post offices. Today I am going to share about SB order no. 37/2021 in detail. Just check it below in full information.



SB Order No. 37/2021
F. No. FS-13/7/2020-FS
Government of India
Ministry of Communications
(Financial Services Division)

Dak Bhawan New Delhi-110001
Dated: 22.11.2021.

To,

All Head of Circles/Regions,

Subject: - Deduction/Non-deduction of TDS in SCSS accounts in post offices reg.

Sir/Madam,

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.

This office is receiving representations from the SCSS account holder(s) that the TDS amount has been deducted from their interest payments even after submission of form 15G/15H for the current Financial Year.

I am directed to say that Circles should take necessary action for the configuration of TDS/Form 15G/15H/NOPAN status in all SCSS accounts and CIFs.

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: -

  • 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.
  • 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.
  • CIF of SCSS account holders should be seeded with valid PAN.
  • DS code is configured in the CIF level for SCSS account holders. It should be TDSNR/TDSNS only and not as NOTAX.
  • Tax liability will be calculated based on the age of the customer and interest payable for the financial year.
  • Tax exemption is applicable only if the account is seeded with 15G/15H.
  • TDS code NOTAX/TDSNR will be converted as TDSNS on the date of the customer reaching 60 years of age, by a batch process.
  • If PAN is invalid, the TDS code will be converted as NOPAN/NOPNS by the batch process in Finacle.
  • Updating of form 15G/15H should be done on the date of receipt of the form from the account holder.
  • 15G/15H should be updated using the CSCAM menu and verified without fail.
  • Once 15G/15H is entered, the tax category at the account level will get updated to ‘No Tax’.

The following configuration should be made by all the CBS post offices for configuration of TDS or non-deduction of TDS or NO PAN in all existing SCSS accounts or at the time of opening of new account in SCSS as the case may be: -

sb order 37 2021

The Government of India has amended Section 194A of Income Tax Act, 1961, and accordingly the total aggregate interest income in a Financial Year payable in case of all SCSS account holders, who has not attained the age of 60 years has been revised and configured in Finacle from Rs. 10,000/- to Rs. 40,000/- for the purpose of TDS deduction.

Non-CBS post offices shall also deduct the TDS from the SCSS account holders aged below 60 years in accordance with the above-revised limit.

It is the responsibility of the concerned CBS post office for up-dation of form 15G/15H (if submitted) in every financial year and update the correct PAN number. Quoting invalid PAN /wrong PAN number may attract penalty u/s 272B of Income Tax Act-1961.

It is requested to circulate these guidelines to all Post Offices for information, guidance, and ensure necessary action.

This is issued with the approval of the competent authority.

Yours Sincerely
(Devendra Sharma)
Assistant Director (SB-II)

SB order 37/2021 PDF Download

Click here to download the SB order no. 37/2021 PDF file.