Friends,
This may be happened with most of us that one has deposited 15-G/15-H Form with the bank in time for not deducting the Income Tax at source out of the savings made in form of Fixed Deposit with the Bank, but when we get our amount on maturity it is noticed that INCOME TAX has been deducted. After inquiring from the bank officials they usually asks that you have not submitted the required Form 15-G/15-H. This is due to because the Form submitted by the customers are misplaced or no proper action has been taken by the Bank Official. To avoid this type of inconvenience, the Indian Bank Association has issued instructions to all banks to give Acknowledgement to the customers at the time of submission of Form 15-G/15-H. A Circular has also been issued in this regard which could be read as under :
CIRCULAR DBOD.NO.LEG.BC.100/09.07.005/2012-13, DATED 31-5-2013
As you are aware banks are not required to deduct TDS from depositors who submit declaration in Form 15-G/15-H under Income Tax Rules, 1962. However, it has been brought to our notice that despite submission of Form 15-G/15-H by customers, banks are deducting tax at source, at times, causing inconvenience to customers resulting in a number of complaints. Such instances arise because either the forms are misplaced or a track is not kept of forms received in the branches.
2. The matter has been examined by us in consultation with Indian Banks' Association (IBA). With a view to protect interest of the depositors and for rendering better customer service, banks are advised to give an acknowledgment at the time of receipt of Form 15-G/15-H. This will help in building a system of accountability and customers will not be put to inconvenience due to any omission on part of the banks.
