CPC (TDS) reminder to Banks for raising Flag “B” in TDS Quarterly Statements against 15G/H transactions

CPC (TDS) has issued a communication to banks regarding raising of Flag “B” in TDS Quarterly Statements against 15G/H transactions.

The issued communication has been given below:

Dear Deductor (TAN XXXXXXXXX),

As you may be aware that the depositors submit form 15G/H to the bank for no deduction of tax to be made on the interest payments made to them. As per rule 31A (4) of Income Tax Rules read with section 200 of Income Tax Act, the referenced 15G/H transactions are required to be reported by raising Flag “B” in relevant TDS Statements (Form 26Q).

However, CPC(TDS) has observed from its records that you have not raised Flag ‘B’ for No deduction on account of 15G/H even against a single transaction as reported in the TDS Statement(s) submitted for various quarters of Financial Year 2013-14.

It is highly improbable that not even a single depositor has submitted form 15G/H to you for non-deduction of tax on the interest payments. Accordingly, you are advised to take the following action:

Actions to be taken:

  • Since the due date of filing Q2 2014 TDS Statements (October 15) is approaching fast, you are requested to check the details of 15G/H transactions from your source data and raise Flag “B” in the Original TDS Statements.
  • Please submit Correction Statements for previous Quarterly TDS Statements by taking following actions:
    • Download the Conso File from our portal. Please use the e-tutorial for necessary help.
    • Prepare the correction statement with appropriate changes.
    • Please ensure that the TDS Deposited amount equals the TDS Deducted amount in your correction statement. Submit the Correction Statement at TIN Facilitation Centre.

For any assistance, you can also write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

Source: TRACES

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