Deduction of TDS in respect of Senior Citizens who have Invested in SCSS

Deduction of Tax Deducted at Source (TDS) in respect of Senior Citizens who have Invested In Sr.Citizen Savings Scheme (SCSS)

F.No 79-01/2016-SB

Government of India
Ministry of Communications
Department of Posts
DakBhawan, Sansad Marg,
New Delhi-110001

Date: 29.06.2018

To
All Heads of Circles/Regions
Addl. Director General, APS, New Delhi.

Subject -Deduction of TDS in respect of Senior Citizens who have Invested In Sr.Citizen Savings Scheme regarding.

Sir / Madam,

I am directed to say that Government of India has amended Suction 194A of Income Tax Act 1961 through Finance Act 2018 and Inserted below new Proviso below Sub Section 3 of Section 194A:-

[Provided also that in case of payee being a senior citizen, the provisions of sub-clause (a), sub-clause (b), and sub-clause (c) shall have effect as if for tho words “ten thousand rupees”, tho words ‘fifty thousand rupees” had been substituted.

Explanation.—For the purposes of this clause, “senior citizen” means an Individual resident In India who is of the age of shay years or more at any time during the relevant previous year;)

2. With this amendment, now TDS will not be applicable on the total aggregated Interest Income up to Rs.50.0001- in a Financial year payable In case of all SCSS Accounts opened by Senior Citizens of the age of 60 years and above (who attained age of 60 years anytime during the previous financial year I.e 2017-2018). However, this limit will not be applicable to those SCSS Account holders who had opened SCSS Accounts under the relevant provisions of relaxed SCSS Rules for (I) individuals who attained the age of 65 years or more but less than 60 years and retired on superannuation or (ii) Personnel of Defence Services (excluding Civilian Defence Employees) and not attained age of 60 years during previous financial year i.e 2017.18). For such account holders, current limit of Re.10,0001- shall continue.

3. Rules reisting to submission of Form 15(by those who are below the age of 60 Years) and 15H(who are of 60 Years or more age) are not changed. However, due to change of tax exemption limits for certain categories, Form 15G or 15H can be accepted If total Interest payable in a Financial Year of all SCSS Accounts of an individual SCSS account holder is within the Exemption Limit mentioned below:-

INDIVIDUAL TYPE FORM TYPE AGE INCOME EXEMPTION LIMIT
Individual 15G Below 60
years
2,50, 000
Senior Citizen lndividual 15H 6040 years 3,00,000
Super Senior Citizen
(lndividual)
15H 80 years
above
5,00,000

 

4. It Is requested to circulate this amendment to the concerned staff for Information and necessary action Necessary changes in CBS and Sanchaya Post application* an being canted out to implement the lame In CBS Post Offices

This Meuse with the approval of competent authority

Yours Faithfully,

(P.b. Meena)
Assistant Director(SB-I)

Read/Download Department of Post OM F.No 79-01/2016-SB dated 29.06.2018

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