TDS in Sr Citizen Savings Scheme

Q & A ForumCategory: BankingTDS in Sr Citizen Savings Scheme
dr.sanket asked 8 years ago
My father has senior citizens saving schemes account in Sbi, unfortunately father passed away on 25th January 2018. This account has my mother as nominee. Now the problem is bank people are saying Tds will be deducted as account holder who was filling up 15H form is now no more. So I want to know can my mother fill up this 15H form being a nominee and as a legal heir? So that we don't have to bear losses. Kindly reply.
4 Answers
Sreekanth Staff answered 8 years ago
Hi, Sorry to hear of the loss of your father! Had she been a joint-account holder then things would have been easier, as she can continue with the SCSS deposit. As she is a nominee, your banker may be right in deducting TDS on withdrawal of funds. Kindly note that TDS does not mean a loss. You can file your father's ITR during Apr to July 2018 and can get this TDS as refund (if any). Kindly read : https://www.relakhs.com/income-tax-return-of-deceased-person/ https://www.relakhs.com/misconceptions-on-tds-tax-deducted-at-source/ https://www.relakhs.com/nominee-legal-heir-will-importance/  
dr.sanket replied 8 years ago

Thank you so much, as usual a perfect solution provided by you. Respect!

dr.sanket replied 8 years ago

Hi Sreekanth and Team, there’s a correction to the question asked above. My mother is a JOINT HOLDER of the senior citizens saving schemes account. And NOT the NOMINEE. Now please tell me what to do as bank has already deducted the TDS. I have already submitted the 15H form with my mother’s signature on it. Waiting for your answer.

dr.sanket replied 8 years ago

Hi Sreekanth and Team, there’s a correction to the question asked above. My mother is a JOINT HOLDER of the senior citizens saving schemes account and not the NOMINEE. Now please tell me what should I do for refund as bank has already deducted the TDS for the interest paid. I have already submitted the 15H form to the bank with mother’s signature on it. Please reply.

Sreekanth Staff answered 8 years ago
Hi, In whose name the TDS has been deducted? was it after your father's demise?  
dr.sanket replied 8 years ago

Under my father’s name TDS is deducted, after his death.

dr.sanket replied 8 years ago

Deducted in my father’s name, after his death. He passed away on 25th January 2018 and TDS is deducted for latest credit of interest. ie for this quarter.

Sreekanth Staff answered 8 years ago
Hi, In such a scenario, if your mother's income is below basic exemption limit (or) lesser than your income, she can file ITR as a legal heir on behalf of your demised father. In case, here tax liability is nil, she can claim TDS as refund (if any). Kindly take help of a CA.
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