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Nani Reporter (incharge)     19 October 2010

TDS on Interest on Senior Citizens Savings Scheme

The government had notified an "Electronic Filing of Returns of Tax at Source, Scheme,2005". It is mandatory ror Government collectors of tax at source to file e-Tax returns. The General Post Office, Mumbai deducts tax at source from interest payments on Senior Ciizens Savings Scheme but does not file e-tax returns by uploading the amounts to Tax Information Network of National Securities Depository Limited, with the result that the tax so deducted is not reflected in the PAN holders account in the form 26AS. On taking up the matter with General Post Office Mumbai, we are told that the tax so deducted has been remitted to NAGPUR, where and to whom in NAGPUR is not told. This attitude and negligence and non adherance to mandatory provisions in law has resulted in denial of refund due to senior citizens, who with advanced age are not able to chase up the authorities and have to suffer losses due to no fault of theirs. Insuch cases what is the remedy? apart from closure of account. Such inaction by one Government Department results in making gift by appropriation to another Government Department.


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 2 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     22 October 2010

SEction 193 gives certain exemptions, viz.,no tax shall be deducted from any interest payable on 4 1/2%National defence bonds, 7 - year national savings certificates. Gold bonds 198.,etc.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     22 October 2010

SEction 193 gives certain exemptions, viz.,no tax shall be deducted from any interest payable on 4 1/2%National defence bonds, 7 - year national savings certificates. Gold bonds 198.,etc.


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