QUESTION & ANSWERS
Confusion as to deductor’s responsibilities
I am a senior citizen having a Senior Citizen Savings Scheme (SCSS) account. There is a lot of confusion created by the Postal Department staff in regard to submission of Form 15G for non-deduction of TDS to the SCSS accounts.
Here in Erode Head Post Office, they demand Form 15G for every quarterly payment of interest, whereas the form is for the whole of the financial year. Moreover, they refuse to accept the form for the previous financial year in 2005-06.
In another post office, they demand both Form 15G and 15H even to the people who are of the age from 60 and below 65.
As a depositor in SCSS in the post offices in and around my area, I suffer very much because of the varied interpretations by different post offices.
I request you to kindly enlighten me as to the correct position and the relevant extract of the IT Department or Govt. order in this regard.
It is unfortunate that post offices, banks and many companies are not aware of their duties, some acting with excessive zeal deducting tax, where it is not necessary or put the recipient to unnecessary formalities as is pointed out by the reader. There is negligence in tax deduction itself in the case of many banks and such public institutions indicating that the enforcement of the provisions both in the interest of the Income-tax Department and the taxpayers require to be geared. While efforts are taken to ensure tax deduction at source, there is hardly any effort to stop unnecessary trouble and over-deductions and to see that troubles to the public are avoided. Education for both deductors and deductees would be necessary. Publicity in matters of TDS through media is an urgent necessity.
S. RAJARATNAM
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