CPC TDS Reminder to Banks for not raising a Single Flag-B in TDS Quarterly Statements against 15G or 15H Transactions on Interest payments |08-10-2014|

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:

Also Read:
CPC Notice dated 08-10-2014 to Banks for non compliance by branches Click Here>>
CPC Communication 17-05-2014-Raising Flag-B for 15G 15H where income exceeds taxable limits Click Here >>