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BCC:BR:104/242

5th July, 2012

MASTER CIRCULAR TO ALL BRANCHES / OFFICES IN INDIA

ISSUED BY CORPORATE ACCOUNTS & TAXATION


DEPARTMENT, B.C.C., MUMBAI
Dear Sir / Madam,
Re: Taxation Matters-TDS other than Salary
We refer to our circular BCC:BR:104/30 dated 24-01-2012, wherein we had
advised the various guidelines applicable for deduction of tax at source and
emphasized timely and correct filing of quarterly TDS return through
electronic media to the IT Department.
The Finance Bill, 2012 has been passed on 28.05.2012 and there have been
several amendments in the Finance Act, 2012. In order to inform to our
branches the important changes made in the said Finance Act, 2012 and all
the updated guidelines/existing instructions in respect of the TDS guidelines
other than salary at one place, we have consolidated the same here, which
will serve as a Master Circular. We trust that deduction/filing of return of
TDS by the branches shall be as per latest/updated guidelines of Income Tax
Act, 1961.
Important changes as per Finance Act, 2012:
1. TDS on remuneration to a director (w.e.f 1st July 2012)
TDS is required to be deducted on the remuneration paid to a director, which
is not in the nature of salary, at the rate of 10% of such remuneration under
Sec 194J. (Not applicable to the Branches)
2. Form No. 15 G
The income ceiling for submission of Form 15G declaration is raised to Rs.
2,00,000 w.e.f. 1st April 2012. There is no separate income ceiling for women
assesse and this limit is applicable in both the cases.
3. Form No.15 H
The age for availing the benefits by a senior citizen has been reduced from 65
yrs to 60 yrs w.e.f from 1st July 2012. Declaration of Form No. 15H can
now be submitted by a resident individual who is of the age of 60 years or
more (w.e.f 1st July 2012) claiming interest income without deduction of
tax.

CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,


Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 1 of 13

4. Fee and Penalty for delay in furnishing TDS statement and incorrect
information in TDS statement for FY 2012-13.
Nature of Penalty
Amount of Penalty
Fee for late furnishing of TDS Increased from Rs. 100 per day to Rs.
statement
200 per day.
Penalty for not furnishing TDS Ranging
from
Rs.
10,000
to
statement within the prescribed Rs.1,00,000
time.
Penalty for furnishing incorrect Ranging
from
Rs.10,000
to
statement
Rs.1,00,000
Updated guidelines for TDS other than salary:A. TDS on Interest other than Interest on securities- Section 194A
I- GENERAL:
Bank responsible for paying interest on term deposit to a resident is
required to deduct tax at source. The expression term deposit has been
defined to mean deposits, excluding recurring deposits, repayable on the
expiry of the fixed periods.
TDS rate is 10%. If the deductee does not furnish his PAN to the Bank, tax
will be deducted (with effect from 01.04.2010) at the rate of 20%.
TDS is required to be deducted either at the time of credit of such income
to the payees account or at the time of payment, whichever is earlier. TDS
is required to be deducted even if credited to Interest Payable/Suspense
A/c.
In case of term deposits with banks, no tax is required to be deducted up
to an aggregate interest of Rs.10,000/- in a financial year.
No tax is required to be deducted in case of interest paid/credited to any
banking company, co-operative bank, public financial institutions, LIC, UTI,
an insurance company or a co-operative society carrying on the business of
insurance or notified institutions.
II- Form 15 G/15 H:
According to Sec 197A of Income Tax Act, 1961, the Bank is not required to
deduct tax on interest paid to individuals or a person (not being a company
or a firm) if such customer furnishes to the Bank a declaration in prescribed
Form No. 15G /15H as applicable.
Declaration of Form 15G can be submitted by a individual or a person (not
being a company or a firm) who is of less than 60 years (w.e.f 1st July
2012) of age and his/her total income should not exceed Rs.2,00,000 for
FY 2012-13. In case the interest paid by the Bank to such customer during
a financial year exceeds Rs.2,00,000 then TDS has to be deducted by the
Bank on the entire amount of interest paid.
Declaration in Form No. 15H can be submitted by a resident individual who
is of the age of 60 years or more (w.e.f 1st July 2012) claiming interest
income without deduction of tax.

CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,


Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 2 of 13

Form 15G/15H can be accepted from account holders who are having
deposits in our Bank and earn interest income. It cannot be accepted for
any other income such as salary and / or pension.
Form 15G/15H is to be obtained at the beginning of each financial year (1st
April) for existing accounts. Form 15G/15H has to be obtained for all new
accounts wherever applicable as and when account is opened.
No exemption is given against Form 15G / 15H to non-resident customers.
Form 15H can be accepted from the senior citizens whose tax liability is nil
even though their estimated total income exceeds the exempted limit of
Rs.2,50,000. Therefore Form 15H can be obtained even if the Interest
payment crosses Rs.2,50,000/-.
The declaration in Form 15G/ 15H is required to be obtained in duplicate
from the customer (payee).
One copy of the declaration is required to be submitted to the
Commissioner of Income Tax of the concerned area on or before 7th day of
the next following month in which declaration is made.
Immediately on receipt of Form 15G / 15H, enter the status in the accounts
of the customer in CBS system stating the fact that Form 15G/15H is
received in this account. This will ensure non-deduction of tax at source.
Branch should ensure that in Form 15G/15H status of residency
Resident/Non Resident is clearly mentioned, all columns are filled in
properly, non-relevant portion is striked off.
The Branch should ensure that the customer has mentioned his/her PAN in
the Form 15G/15H.
III-Non- deduction OR Lower deduction of TDS
The Bank may not deduct TDS or deduct TDS at a lower rate if a customer
submits a certificate issued by the Assessing Officer of its jurisdiction under
Sec 197 (1) for nil deduction or lower deduction. Branch should ensure the
authenticity & validity of the certificate furnished by the customer and
necessary changes in the CBS system may be made for the period mentioned
in the certificate.
IV-TDS on NRE Deposits:
Interest earned on Non Resident External (NRE) accounts and Foreign
Currency Non Resident (FCNR) accounts are tax free in India. Hence, there
would be no TDS. Provided that such individual is a person resident outside
India as defined in clause (q) of section 2 of the said Act or is a person who
has been permitted by the Reserve Bank of India to maintain the aforesaid
Account.
V-TDS on NRO Deposits under Sec 195
Income Tax rates will be as per Double Taxation Avoidance Agreement
(DTAA) agreed between India and various countries. The updated list of
DTAA countries and prevalent concessional tax rates is given as per
Annexure - 1
In order to extend the benefit of concessional rate of withholding tax on NRO
deposits, following documents are required to be obtained from the NRI
customer
CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,
Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 3 of 13

a. Tax Residency Certificate from the Income Tax Authorities of the


country of the customer as per specimen enclosed in Annexure -2
b. A Declaration from NRI concerned as per specimen enclosed in
Annexure -3. The declaration is required to be stamped in India as per
State Laws within 90days.
If the above documents are not submitted by the depositor, then Income
Tax at a rate of 30.90% will be deducted at source on interest earned in
the NRO accounts irrespective of the amount of interest. Branches should
note the following:
Branches are required to mark/update in the Finacle, the concessional tax
rate and Tax Residency Certificate and Declaration at the beginning of
every financial year. The same shall be valid upto the validity of Tax
Residency Certificate or 31st March or maturity of the deposit whichever is
earlier.
B.

TDS on Contractors & Sub-Contractors Section 194C


Nature
Rate of TDS
Exemption
Payment
to
Resident In
case
of Contract payment not
Contractor
and
Sub- Individuals/HUF:1%
exceeding Rs 30,000
contractor (in respect of In case of domestic
per single contract or
or
any work including supply company
aggregate Rs 75,000 in
of labour for carrying out firm:2%
a year.
any work)
In case of work contract being manufacturing or supplying product, TDS
shall be deducted on the invoice value excluding the value of material, if
such value is mentioned separately in the invoice. Where the material
component has not been separately mentioned in the invoice, TDS shall be
deducted on the whole of the invoice value.
Tax is deductible on the entire consideration including Service Tax, if any.
With effect from 01/10/2009, limit of cash payment to Transport Operators
u/s 40 A (3) is enhanced from Rs. 20000/ to Rs. 35000/ in the case of
payment made for plying, hiring or leasing goods carriages. For other
payments, the limit of Rs. 20,000/- will continue.
If the deductee is a Transport Contractor and he furnishes valid PAN
to the Bank, NO TDS is applicable. For this purpose, the transport
operator is a person who is in the business of plying, hiring or leasing goods
carriages. Please note that deductors who make payment to
transporters without deducting TDS (as they have quoted PAN) will
be required to intimate these PAN details to the Income tax
Department through Return No.26Q. Further, while filing return no.
26Q, the Branch should mention Nil rate in all entries related to
such transporters by inserting a Tag T in the remarks.

CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,


Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 4 of 13

C.

TDS on Commission & Brokerage Section 194-H


Nature
Rate of TDS
Payment to Resident by 10%
way of commission or
brokerage

Exemptions
Aggregate payment during the
Financial Year does not exceed Rs
5,000/-

Tax is deductible on the entire consideration including Service Tax, if any


If the recipient of income does not furnish his PAN to the Bank, Tax will be
deducted at the rate of 20%.
D. TDS on Rent Section 194-I
Nature
Rate of TDS
Payment to Resident Rent
on
Plant
and
by way of rent on Machinery:2%
Rent
on
Land
and
land/
Building or Furniture or
building/machinery/
Equipment
and fittings 10%
Furniture

Exemptions
When aggregate payments
to the payee during a
financial year does not
exceed Rs 1,80,000/-.

Please take note of the following with regard to Sec-194-I:


If there are a number of payees, each having definite and ascertainable
share in the property, the limit of Rs.180000/- will apply to each of the
payee/co-owner separately.
Ownership is immaterial. TDS is to be deducted whether payment is made
under any lease, sub lease or any other agreement/ arrangement.
If a building is let out along with Furniture/Fittings but rent is payable
under two separate agreements (one for building and another for
furniture/fittings) the composite rent is subject to tax under Sec-194I.
If advance rent is paid on or after 31st May, 1994, it is subject to tax
deduction at the time of payment.
In case the tenant makes a non-refundable deposit, tax would have to be
deducted at source as such deposit represents the consideration for the
use of land and building, etc.
Tax is not deductible on service tax components of the rent.
Where apart from rent, the municipal tax, ground rent etc. are to be borne
by the tenant i.e. Bank, no tax will be deducted on such municipal tax,
ground rent etc. paid/reimbursed to the landlord.
If the recipient of income does not furnish his PAN to the Bank, Tax will be
deducted at the rate of 20%.
TDS is not applicable, if payee is GOI or local authorities.
CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,
Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 5 of 13

E. Section 194-J: Deduction of tax at source on fees for professional or


technical services:
Professional Services means services rendered by a person in the course
of carrying on Legal, Medical, Engineering, Architectural Profession,
Profession of Accountancy, Technical Consultancy, Interior decoration,
authorized representative, film artist, company Secretary and information
technology.
Explanation:
Authorised Representative means a person who represents any other
person, on payment of any fee or remuneration before any Tribunal or
authority constituted or appointed by or under any law for the time being
in force, but does not include an employee of the person so represented or
a person carrying on legal profession or a person carrying on the
profession of accountancy;
Film Artist means any person engaged in his professional capacity in the
production of a cinematograph film whether produced by him or by any
other person, as
(i)
an actor
(ii) a cameraman;
(iii) a director, including an assistant director;
(iv) a music director, including an assistant music director;
(v) an art director, including an assistant art director;
(vi) a dance director, including an assistant dance director;
(vii) an editor;
(viii) a singer;
(ix) a lyricist;
(x) a story writer;
(xi) a screen-play writer;
(xii) a dialogue writer; and
(xiii) a dress designer
With effect from 1st July 2010, the exemption limit for deduction of TDS is
Rs.30000/-. The rate of tax to be deducted is 10%.
If a consolidated bill is given by a professional /consultant for his fees as
well as out of pocket expenditure, then the entire amount of bill
including service tax is subject to TDS. If a separate bill is given for
reimbursement of out of pocket expenditure, then reimbursement of
expenditure is not subject to tax deduction.
F.

Tax deduction at source on the deposits in banks in the name of the


Registrar/ Prothonotary and Senior Master attached to the Supreme
Court/ High Court etc during the pendency of litigation of
claim/compensation-reg.
CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,
Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 6 of 13

1. Deduction of Tax under section 194A of Income Tax Act, 1961 has to be
made on the deposit kept in the name of abovementioned persons.
2.There may be situation where in the course of the proceedings before
Supreme Court/ High Court/ any other court or tribunal (hereinafter the
court), one or more than one litigant (hereinafter the depositor) is
directed by the court that a specified amount (hereinafter deposit) be
deposited in the bank either directly or through the court in order to protect
the interest of litigants. Such deposits (usually time deposits) are kept in
the bank in the names of Registrar/Prothonotary and Senior Master or any
other name as per the order of the court. Tax is to be deducted on the
interest periodically accruing on such deposits/ time deposits and TDS
certificate is to be issued in Form 16A.
3. It has been clarified by the IT Department that:
i. where one or more than one litigant is directed by the court that a
specified amount be deposited in the bank directly or through the
court, the bank shall in accordance with the provisions of the IT Act,
deduct tax at source on the interest accruing on the above mentioned
deposit(s) as per existing procedure and at the rates in force. The
certificate of deduction of tax shall be issued by the bank in the
name of the depositor. If more than one person has been directed
to deposit any specified amount, the amount of TDS shall be
corresponding to each such depositor for the portion of interest accrued
in its respective share in the total amount deposited and TDS
certificates shall be accordingly issued by the bank.
ii. At the time of making deposit of the amount ordered by the court,
the depositor(s) shall submit a prescribed declaration with the court
for record purpose and to facilitate the administration of TDS. The
Registrar/Prothonotary and Senior Master or any person authorized
by the court will pass the information furnished therein to the bank
concerned for TDS properly in the name of the depositor(s) in
accordance with the provisions of the Act.
iii. Some of the instances covered by this circular are:
a. In the course of appellate proceedings, the court directs an
insurance company (the depositor) to deposit a part of
compensation awarded by Motor Accident Claims Tribunal. This
amount is deposited as Time Deposit in a bank in such name as per
the directions of the court, the credit of TDS on interest accruing on
such deposit will be allowed to the Insurance Company which has
made the said deposit.
b. The Court while deciding the cases of land compensation directs the
authority concerned (liable for making payment of compensation) to
deposit any sum in time deposit in any bank, the TDS on time
deposit shall be in the name of the authority making deposit, if such
authority is an entity liable for charge to Income Tax on its income.
In case the deposit in the bank is by Central or State Government
no tax will be deducted.
CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,
Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 7 of 13

c. The court adjudicating upon financial dispute during pendency of


proceedings direct any party (ies) to deposit any amount as security
in time deposit, the TDS on interest accruing on such deposit will be
in name of the depositor irrespective of the fact that at the
directions of the court such time deposit has been drawn in the
name of the officer of the court or joint name or any other name.
4.

The above procedure shall not apply to:


a. any deposit in the bank held or dealt by the court or any other
person appointed by the court in the capacity of being an
administrator or receiver or any authority of similar nature; or
b. any deposit which has not been made by any specific depositor but
has arisen due to attachment made by the Court; or
c. the cases of representative assessee within the meaning of section
160 of the Act.
Therefore in view of point no.4 above, TDS in respect of income, which
the Court of Wards, the Administrator- General, the Official Trustee or
any receiver or manager (including any person, whatever his
designation, who in fact manages property on behalf of another)
appointed by or under any order of a court, receives or is entitled to
receive, on behalf or for the benefit of any person, such Court of
Wards, Administrator-General, Official Trustee, receiver or manager;
shall be deducted as per extant guidelines and TDS certificate shall be
issued in the name of depositor only.

G.

As per latest guidelines relating to TDS payment date, mode of


payment of TDS, TDS Certificates and filing of statement of TDS (TDS
Return), the following rules will apply:
i. Time of Payment - All sums deducted as TDS shall be paid to the credit
of Central Government:
a) On or before 30th day of April where the income or amount is
credited or paid in the month of March and
b) In any other case before seven days from the end of the month in
which the deduction of tax is made.
ii. Mode of Payment:
The payment of TDS is to be made to Government account only
through e-payment i.e. through Net Banking only as it is
mandatory as per law.
iii. Form of TDS Certificate to be issued / received:
A. The certificate of deduction of tax at source by the employer on behalf of
the employee under sub section (1A) of section 192 shall be in,
a. Form 16 and 16AA (where the salary of an employee before
allowing deductions does not exceed ` 1,50,000/-), if the deduction
or payment of tax is relating to salary.
b. Form 16A, if the deduction is other than salary. It is now
mandatory for all deductors including Banks to issue TDS
CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,
Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 8 of 13

certificate in Form No.16A generated through TIN central system


which is to be downloaded from the TIN Website with a unique TDS
certificate number in respect of all sums deducted on or after the
1st day of April, 2011 other than section 192. (For detailed
guidelines please refer our circular no.BCC/BR/103/168 June 8,
2011).
c. It is further clarified that TDS certificate issued in Form
No.16A by the deductor and downloaded from the TIN
Central System shall only be treated as a valid TDS
certificate.
d. As a deductee branch should obtain TDS certificate
downloaded from TIN central system only.
B. The TDS certificate shall specify:
a. The valid Permanent Account Number (PAN) of the deductee.
b. Valid Tax Deduction and Collection Account Number (TAN) of the
deductor.
c. Challan Identification Number or Numbers.
d. (i) Receipt number of the relevant quarterly statement i.e. 26Q of
tax deducted at source which is submitted to NSDL in respect of
TDS other than salary.
(ii) Status of the booking should be matched.
(iii)The deductor should authenticate the correctness of the contents
before issue of the said certificate by either using digital
signature or manual signature.
(iv)The TDS certificate issued in Form No.16A by the deductor and
downloaded from the TIN Central system shall only be treated as
a valid TDS Certificate.
(v)The receipt number of all the 24Q quarterly statements in case
the statement is for tax deducted at source from income
chargeable under the head Salaries.
iv. Periodicity & Time Limit for TDS Certificate to be issued:
The certificates in Forms specified in column 1 of the table below shall be
furnished to the employee or the payee as the case may be, as per the
periodicity specified in the column 2 and by the time specified in column
3 of the following table.
FORM No.
(1)
16/16AA

PERIODICITY
(2)
Annual

16A

Quarterly

DUE DATE
(3)
By 31st May of the Financial Year
immediately following the financial year in
which the income was paid and the tax
deducted.
Within 15 days from the due date for
furnishing the statement of tax deducted at
source under Rule 31 A

CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,


Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 9 of 13

v. Filing of TDS Return:


a. The provisions are as under:
Details of Periodicity
Income
Salary
Quarterly

Form No.

Time Limit

24Q
27A

15 days after the expiry of each


quarter
45 days in case of March Quarter
15 days after the expiry of each
quarter
45 days in case of March Quarter
15 days after the expiry of each
quarter
45 days in case of March Quarter

Other than Quarterly


salary

26Q
27A

Payment to Quarterly
Nonresident

27Q
27A

The branches at the time of filing the statement of tax deducted with NSDL
should ensure to mention properly:
i. Tax Deduction Account Number (TAN) in the statement.
ii. Permanent Account Number (PAN) in the statement.
iii. PAN of all deductees. Where PAN of the deductee is not available
Branch/Office should not mention the PAN of the Bank in any
case and report the same as PAN not available.
iv. Where 15G/15H is submitted and no tax is deducted, such transactions
to be reported in quarterly statement of Tax i.e. Form No. 26Q (Return)
with appropriate flag (flag B) as provided in the return.
v. Particulars of tax paid to the Central Government including Book
Identification Number or Challan Identification Number as the case may
be.
vi. Branch/Office to ensure the timely and correct filing of quarterly return.
Fee and penalty has been introduced w.e.f 01st July 2012 for not
furnishing TDS statement within prescribed time and for furnishing
incorrect information in the TDS statement.
Nature of Penalty
Fee for late furnishing of TDS
statement
Penalty for not furnishing TDS
statement within the prescribed
time.
Penalty for furnishing incorrect
statement

Amount of Penalty
Increased from Rs. 100 per day to Rs.
200 per day.
Ranging
from
Rs.
10,000
to
Rs.1,00,000
Ranging
from
Rs.1,00,000

Rs.10,000

b. Reporting of 15G/15H transactions in quarterly TDS statements:


As per Income Tax Rules 31A (4)(v), (deductor) the Bank at the time of
preparing the return/statements of Tax Deducted at Source shall furnish
particulars of amount paid or credited on which tax was not deducted in view
of the compliance of provisions of section 197 by the payee, such transactions
are required to be reflected in TDS statements/returns by flagging such
transactions with the appropriate flag (flag B) as provided in form 26Q.
CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,
Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 10 of 13

to

In view of above branches are advised that, in TDS statement submitted by


the branches to Income Tax Authority, transactions which are exempted from
tax due to submission of Form 15G/15H, should be marked with appropriate
flag (flag B).
H. Penalty for failure to deposit tax
If a person fails to deduct tax at source or after deduction fails to deposit
TDS, he is liable to pay:
Rate of Interest
(per month or part)
1 per cent
1.5 per cent

I.

Period for which interest is payable


From the date on which tax was deductible to the
date on which tax is actually deducted.
From the date on which tax was actually
deducted to the date on which tax is actually
paid.

Permanent Account Number (PAN) - Sec 139A and Form 60/61


Every person shall quote his permanent account number in all documents
pertaining to the transaction specified below:
1.

A time deposit exceeding Rs.50,000, with a banking company to


which the Banking Regulation Act, 1949 applies
2.
Opening an account with a banking company to which the Banking
Regulation Act, 1949 applies (but other than time deposit account)
3.
Payment in cash for purchase of bank drafts or pay orders or
bankers cheques from a bank for an amount aggregating Rs. 50,000
or more during any one day.
4.
Deposit in cash aggregating Rs. 50,000 or more during any one day
with a bank.
5.
Making an application to any banking company or to any other
company or institution for issue of a credit card or debit card
6.
Payment in cash in connection with travel to any foreign country of an
amount exceeding Rs. 25,000 at any time.
7.
Payment to a dealer
a. Of an amount of Rs.5 lakh or more at any one time, or
b. Against a bill for an amount of Rs. 5 lakh or more,
For purchase of bullion or jewellery.
8.
A contract value exceeding Rs. 1 lakh for sale or purchase of securities
as defined in Sec 2 (h) of the Securities Contracts (Regulation) Act,
1956.
For further details please refer to Rule 114B of the Income Tax Rules.
The following points should be noted:
Payment of Cash includes payment for purchase of foreign currency.
Travel to foreign country does not include travel to Bangladesh,
Bhutan, Maldives, Nepal, Pakistan or Sri Lank or travel to Saudi Arabia
for Haj or travel to China on pilgrimage to Kailash Mansarovar.
CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,
Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 11 of 13

Where a person making an application for opening a bank account, is a


minor and who does not have any income chargeable to income tax, he
shall quote the PAN of his father or mother or guardian, as the case
may be.
Any person who has not been allotted a PAN shall make a declaration in
Form No. 60 giving therein the particulars of above mentioned
transactions.

The provisions of Section 139A (relating to furnishing of PAN) shall not apply
to the following class or classes of persons, namely:
1. A person who has agricultural income and is not in receipt of any other
income chargeable to income tax [such person shall make a declaration
in Form No.61 in respect of transactions referred above].
2. Non- Residents
3. The Central Government, State Government and Consular Officers in
transactions where they are payers.
The declaration in this form must be made on each occasion on which any of
the specified transactions are entered into, and handed over to the branch.
Branch should ensure that proof of address is given through one of the
specified documents mentioned in the form.
The form should be received in duplicate and a copy of the same should be
forwarded to the Commissioner of Income Tax (Central Information Branch)
having territorial jurisdiction over the area in which the transaction is
entered, in two instalments as mentioned below:
Particulars
Due Date
Forms received from April 1 to By October 31
September 30
Forms received from October 1 to By April 30
March 31
J.

Others: Please note the following:


PAN is compulsory for deduction of tax at normal rates. If the recipient
does not furnish PAN to the Bank, tax should be deducted at the rate of
20% or normal rate whichever is higher.
If valid PAN is not furnished then TDS rate is 20% (or normal tax rate
whichever is more) to all (including non residents). For e.g. if withholding
tax for non resident is 30.90% and the non resident has not submitted his
PAN, then the Withholding tax should be deducted at 30.90% as it is more
than 20%. However, if the country in which he is a resident has a Double
Tax Avoidance Agreement, the tax rate could be even 10% or 15%. In such
case as the non resident has not submitted valid PAN, then the withholding
tax should be deducted at 20% and not at lower rate (i.e. 10% or 15%).
Please quote PAN in all correspondences between the bank and the
recipient.
Surcharge @ 2% on TDS is applicable only when the recipient is a foreign
company and the total payment (before TDS deduction) to such foreign
company exceeds Rs. 1 crore.
Education Cess (@2%) and secondary and higher education cess (@1%) is
applicable on any payment made to a non-resident or a foreign company.
CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,
Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 12 of 13

In case of payment to a person who is resident of India surcharge,


education cess and higher education cess is not applicable while
deducting TDS.
K. Timely filing of TDS Return & prompt filing of correction statement
Time & again we receive letters from Income Tax Department/Ministry of
Finance expressing their seriousness for correct and timely filing of TDS
statements and prompt filing of correction statements, if required, so as to
avoid punitive action by the tax authorities and inconvenience to
deductees/tax payers on account of missing or inaccurate tax credit of their
TDS.
Branches are therefore advised to ensure that quarterly TDS returns and also
correction statements as and when any mistakes are pointed out by
deductee/tax department are filed within prescribed time limit. As noncompliance of tax provisions as mentioned above not only attracts
penalty/penal proceedings but this also leads to complaints by the customers.
L.

Summary
Branches / offices are advised to go through important aspects as mentioned
above. All the Regional offices are requested to guide the branches, if any
required, on the above guidelines.
Rates of TDS have been summarised in Annexure 4 for ready reference
of Branches / Offices.
Based on repetitive queries received from various branches/offices we have
compiled Frequently Asked Questions (FAQ) and Answers as mentioned
in Annexure -5 to enable the branches / offices to address the customers
common queries. We trust that the FAQ will be beneficial to the
branches/offices.
For any other queries, the Regional offices, may forward the branchs query to
Corporate Taxation Department at tax.bcc@bankofbaroda.com or call us at
(022) 66985288 for further guidance.
Yours faithfully,

(V. K. Gupta)
GENERAL MANAGER
(CORPORATE A/Cs & TAXATION AND CFO)

CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,


Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 13 of 13

Annexure 1.
Withholding Tax Rates
[Tax rates applicable in India under ADT Agreement]
Country

Dividend [not being covered by section 115-O]


Right of
State to
tax

Tax rate

Interest
Right of
State to
tax

Royalty

Tax rate

Right of
State to
tax

Tax rate

Fees for technical


service
Right of
State to
tax

Tax
rate

Armenia

Both

10%

Both

10%

Both

10%

Both

10%

Australia

Both

15%

Both

15%

Both

[Note 3]

Both

[Note
3]

Austria

Both

10%

Both

10%

Both

10%

Both

10%

Bangladesh

Both

10% (if at least 10% of the capital of the


company paying the dividend is held by the
recipient)

Both

10% [Note 2]

Both

10%

Belarus

Both

10% if paid to a company holding 25% shares;


otherwise 15%

Both

10% [Note 2]

Both

15%

Both

15%

Belgium

Both

15%

Both

15% (10%
granted by
bank)

Both

10%

Both

10%

Botswana

Both

7.5% (if shareholder is a company and holds at


least 25% shares in the investee-company);
otherwise 10%

Both

10%

Both

10%

Both

10%

Brazil

Both

15%

Both

15% [Note 2]

Both

25% for use of


trademark; 15% for
others

No
provision

if
a

No separate
provision

separate

Dividend [not being covered by section 115-O]

Right of
State to
tax

Tax rate

Interest

Right of
State to
tax

Royalty

Tax
rate

Right of
State to
tax

Tax rate

Fees for technical


service
Right of
State to
tax

Tax
rate

Bulgaria

Both

15%

Both

15%
[Note
2]

Both

15% of royalty relating to literary, artistic,


scientific works other than films or tapes used
for radio or television broadcasting; 20% in
other cases

Both

20%

Canada

Both

15% if at least 10% of the shares of the


company paying the dividends is held by
the recipient of dividend; 25% in other
cases

Both

15%
[Note
2]

Both

10%-20%

Both

10%20%

China

Both

10%

Both

10%
[Note
2]

Both

10%

Both

10%

Cyprus

Both

10% if at least 10% of the capital of the


company paying dividend is held by the
recipient, 15% in all other cases

Both

10%
[Note
2]

Both

15%

Both

10%

Czeck
Republic

Both

10%

Both

10%
[Note
2]

Both

10%

Both

10%

Country

Dividend [not being covered by section 115-O}

Right of
State to
tax

Tax rate

Interest

Right of
State to
tax

Tax rate

Royalty

Right of
State to tax

Tax rate

Fees for technical service

Right of State
to tax

Tax rate

Denmark

Both

15% if at least 25% of the shares of the


company paying the dividend is held by the
recipient; 20% in other cases

Both

10% if loan is
granted by bank;
15% for others
[Note 2]

Both

20%

Both

20%

Germany

Both

10%

Both

10% [Note 2]

Both

10%

Both

10%

Georgia

Both

10%

Both

10%

Both

10%

Both

10%

Finland

Both

10%

Both

10% [Note 2]

Both

10%

Both

10%

France

Both

10%

Both

10%

Both

10%

Both

10%

Greece

Source

20%

Source

20%

Source

30%

Hungary

Both

10%

Both

10%

Both

10%

Indonesia

Both

10% if at least 25% of the shares of the


company paying the dividend is held by the
recipient; 15% in other cases

Both

10% [Note 2]

Both

15%

Iceland

Both

10%

Both

10%

Both

10%

Both

10%

Ireland

Both

10%-15%

Both

10% [Note 2]

Both

10%

Both

10%

Israel

Both

10%

Both

10% [Note 2]

Both

10%

Both

10%

Italy

Both

15% if at least 10% of the shares of the


company paying dividend is beneficially
owned by the recipient company; 20% in
other cases

Both

15% [Note 2]

Both

20%

Both

20%

No separate provision
Both

10%

No separate provision

Country

Dividend [not being covered by section 115-O}

Right of
State to
tax

Tax rate

Interest

Right of
State to
tax

Tax rate

Royalty

Right of
State to tax

Tax rate

Fees for technical service

Right of State
to tax

Tax rate

Japan

Both

10%

Both

10%

Both

10%

Both

10%

Jordan

Both

10%

Both

10% [Note 2]

Both

20%

Both

20%

Kazakstan

Both

10%

Both

10% [Note 2]

Both

10%

Both

10%

Kenya

Both

15%

Both

15% [Note 2]

Both

20%

Both

17.5%

Korea

Both

15% if at least 20% of the capital of the


company paying dividend is held by the
recipient; 20% in other cases

Both

10% if interest is
paid to a bank;
15% for others
[Note 2]

Both

15%

Both

15%

Kuwait

Both

10%

Both

10%

Both

10%

Both

10%

Kyrgyz
Republic

Both

10%

Both

10%

Both

15%

Both

15%

Libyan Arab
Jamahiriya

Source

20%

Source

20%

Source

30%

Luxembourg

Both

10%

Both

10%

Both

10%

Both

10%

Malaysia

Both

10%

Both

10%

Both

10%

Both

10%

Malta

Both

10% if at least 25% of the shares of the


company paying dividend is held by the
recipient company; 15% in other cases

Both

10% [Note 2]

Both

15%

Both

10%

No separate provision

Dividend [not being covered by section 115-O}

Country

Right of
State to
tax

Tax rate

Interest

Right of
State to
tax

Tax rate

Royalty

Right of
State to tax

Tax rate

Fees for technical service

Right of State
to tax
Both

Tax rate

Mangolia

Both

15%

Both

15% [Note 2]

Both

15%

25%

Mauritius

Both

5% if at least 10% of the capital of the


company paying the dividend is held by the
recipient; 15% in other cases

Both

20% [Note 2]; Nil


in some cases

Both

15%

Montenegro

Both

5% (In some cases 15%)

Both

10%

Both

10%

Both

Myanmar

Both

5%

Both

10%

Both

10%

No separate provision

Morocco

Both

10%

Both

10% [Note 2]

Both

10%

Both

Mozambique

Both

7.5%

Both

10%

Both

10%

No separate provision

Namibia

Both

10%

Both

10% [Note 2]

Both

10%

Both

Nepal

Both

10% if at least 10% of the shares of the


company paying the dividend is held by the
recipient; 20% in other cases

Both

10% if paid to
bank,; for other
15% {Note 2}

Both

15%

Netherlands

Both

10%

Both

10% [Note 2]

Both

10%

No separate provision

10%

10%

10%

No separate provision

Both

10%

Country

Dividend [not being covered by section 115-O}

Right of
State to
tax

Tax rate

Interest

Right of
State to
tax

Tax rate

Royalty

Right of
State to
tax

Tax rate

Fees for technical


service
Right of
State to tax

Tax rate

New Zealand

Both

15%

Both

10% [Note 2]

Both

10%

Both

10%

Norway

Both

15% if at least 25% of the capital of the


company paying the dividend is held by the
recipient; 20% in other cases

Both

15% [Note 2]

Both

10%

Both

10%

Oman

Both

10% if at least 10% of shares are held by the


recipient; 12.5% in other cases

Both

10% [Note 2]

Both

15%

Both

15%

Philippines

Both

15% if at least 10% of the shares of the


company paying the dividend is held by the
recipient; 20% in other cases

Both

10% if interest is
received
by
a
financial institution
or
insurance
company; 15% in
other cases

Both

15% if it is payable
in pursuance of any
collaboration
agreement
approved by the
Government
of
India

Poland

Both

15%

Both

15% [Note 2]

Both

22.5%

Both

22.5%

Portuguese
Republic

Both

10%

Both

10%

Both

10%

Both

10%

Quatar

Both

5%-10%

Both

10% [Note 2]

Both

10%

Both

10%

Romania

Both

15% if at least 25% of the shares of the co.


paying the dividend is held by the recipient;
20% in other cases

Both

15% [Note 2]

Both

22.5%

Both

22.5%

C ountry

Dividend [not being covered by section 115-O}

Right of
State to tax

Tax rate

Interest

Right of
State to
tax

Tax rate

Royalty

Right of
State to
tax

Tax rate

Fees for technical service

Right of
State to tax

Tax rate

Russian
Federation

Both

10%

Both

10% [Note 2]

Both

10%

Saudi Arabia

Both

5%

Both

10%

Both

10%

Serbia

Both

5% (if recipient is company and holds 25%


shares) otherwise 15%

Both

10%

Both

10%

Both

10%

Singapore

Both

10% if at least 25% of the shares of the


company paying the dividend is held by the
recipient; 15% in other cases

Both

10% if loan is granted


by
a
bank/similar
institute including an
insurance
company;
15% for others

Both

10%

Both

10%

Slovenia

Both

5-15%

Both

10%

Both

10%

Both

10%

South Africa

Both

10%

Both

10% [Note 2]

Both

10%

Both

10%

Spain

Both

15%

Both

15% [Note 2]

Both

[Note 4]

Both

[Note 4]

Sri Lanka

Both

15%

Both

10% [Note 2]

Both

10%

Both

10%

Sudan

Both

10%

Both

10%

Both

10%

No separate provision

Sweden

Both

10%

Both

10% [Note 2]

Both

10%

Both

10%

Swiss

Both

10%

Both

10% [Note 5]

Both

10%

Both

10%

Both

10%

No separate provision

C ountry

Dividend [not being covered by section 115-O}

Right of
State to tax

Interest

Royalty

Tax rate

Right
of
State
to tax

Both

10% (5% if shareholders is a company holding


at least 10% shares)

Both

10%

Both

10%

Taipei

Both

12.5%

Both

10%

Both

10%

Tajikistan

Both

10% (5% if shareholder is a company and holds


25% of shares)

Both

10%

Both

10%

No separate provision

Tanzania

Both

10% if at least 10% of the shares of the


company paying the dividend is held for a
period of at least 6 months prior to the date of
payment of the dividend; 15% in other cases

Both

12.5%

Both

20%

No separate provision

Thailand

Both

15% if dividend is paid by an industrial


company and at least 10% of capital of such
company is held by the reci-pient; 20% in other
cases

Both

10%
for
financial
institutions and insurance
company; 20% for others
[Note 2]

Both

15%

No separate provision

Both

10%

Both

10% [Note 2]

Both

10%

Both

10%

Both

15%

Both

10% if recipient is bank,


etc.; 15% in other cases
[Note 2]

Both

15%

Both

15%

Syrian
Public

Trinidad
Tobago
Turkey

Arab

and

Tax rate

Right of
State to
tax

Fees for technical service

Tax rate

Right of State
to tax

Tax rate

No separate provision
Both

10%

Country

Dividend [not being covered by section 115-O}

Right of
State to
tax

Tax rate

Interest

Right of
State to tax

Tax rate

Royalty

Right of
State to
tax

Tax rate

Fees for technical


service
Right of
State to
tax

Tax rate

Turkmenistan

Both

10%

Both

10% [Note 2]

Both

10%

Both

10%

Uganda

Both

10%

Both

10%

Both

10%

Both

10%

Ukraine

Both

10%-15%

Both

10% [Note 2]

Both

10%

Both

10%

United
Arab
Emirates

Both

5% if at least 10% of the capital of the


company paying dividend is held by the
recipient; 15% in other cases

Both

5% if loan is granted by a
bank/similar
financial
institute; 12.5% for others

Both

10%

No separate provision

United
Arab
Republic

Source

10%

Source

20%

Source

30%

No separate provision

United
Kingdom

Both

15%

Both

10% if interest is paid to a


bank; 15% for others [Note
2]

Both

[Note 3]

Both

[Note 3]

United States
Mexican

Both

10%

Both

10%

Both

10%

Both

10%

United States

Both

15% if at least 10% of the voting stock of the


company paying the dividend is held by the
recipient; 20% in other cases

Both

10% if loan is granted by a


bank/similar
institute
including
insurance
company; 15% for others

Source

[Note 3]

Source

[Note 3]

Uzbekistan

Both

15%

Both

15% [Note 2]

Both

15%

Both

15%

Vietnam

Both

10%

Both

10% [Note 2]

Both

10%

Both

10%

Dividend [not being covered by section 115-O}

Interest

Royalty

Fees for technical service

Country
Right of
State to tax
Zambia

Both

Tax rate
5% if at least 25% of the shares of the company
paying the dividend is held for a period of at
least 6 months prior to the date of payment of
the dividend; 15% in other cases

Right of
State to tax
Both

Right of
State to tax

Tax rate
10% [Note 2]

Both

Tax rate
10%

Right of
State to tax

Tax rate

No separate provision

1.

10 per cent of the gross amount of the interest on loans made or guaranteed by a bank or other financial institution carrying on bona fide banking or financing
business or by an enterprise which holds directly or indirectly at least 10 per cent of the capital of the company paying the interest.

2.

Dividend/interest earned by the Government and certain institutions like the Reserve Bank of India is exempt from taxation in the country of source.

3.

Royalties and fees for technical services would be taxable in the country of source at the following rates :
a. 10 per cent in case of rental of equipment and services provided along with know-how and technical services ;
b. any other case
i. during first five years of the agreement
- 15 per cent if the payer is Government or specified organisation;
- 20 per cent in other cases;
ii. subsequent years, 15% in all cases.
Income of Government and certain institutions will be exempt from taxation in the country of source.
4. Royalties and fees for technical services would be taxable in the country of source at the following rates :
a. 10 per cent in case of royalties relating to the payments for the use of, or the right to use, industrial, commercial or scientific equipment;
b. 20 per cent in case of fees for technical services and other royalties.
5. 10 per cent of the gross amount of the interest on loans made or guaranteed by a bank or other financial institution carrying on bona fide banking or financing
business or by an enterprise which holds directly or indirectly at least 20 per cent of the capital of the company paying the interest.

Annexure 2

TAX RESIDENCY CERTIFICATE


This is to certify that Mr / Mrs / Miss __________________________ residing at
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
is resident of ___________________ (name of the country) within the meaning of
Avoidance of DoubleTaxation Agreement with India and ___________________
(name of the country) and various conventions and that his / her worldwide income
is subject to tax in the _________________ (name of the country)
This certificate is issued at the request of the assessee and is valid for the Financial
Year ____/___/______to ____/____/________.

INCOME TAX
ASSESSING OFFICER
WITH SEAL

Annexure - 3
FORMAT FOR DECLARATION FOR WITHHOLDING TAX ON N.R.O. DEPOSITS
The Branch Head,
Bank of Baroda,
___ ___ __ _____ ____ Branch,
___ ___ __ _____ ____.

DECLAR ATION
1. I am a non - resident within the meaning of the Indian Income Ta x Act, 1961 for the
Financial Year__________ i. e.period from 01 April _____ to 31 March _____.
2. I am a Tax Resident of (name of the country) within the meaning of the Agreement for
Avoidance of Double Taxation between India and (name of the country) i. e. the Tax
Treaty.
3. I am the beneficial owner of the interest paid by your Bank for the period ___________
to___________ and that I do not carry on any business in India or perform any
independent personal services in India through a permanent establishment or fixed base
situated in India.
4. I undertake to include the said interest income in my tax liability in the country of my
Tax Residency i. e. (name of the country)
5. I am entitled to the benefits of the said Tax Treaty in respect of interest earned by me
from your Bank on NRO Deposits for the period ____ ___ __ __ to _______ ____ and
that the said income is subject to the withholding tax @ _ __ __% plus cess if any.
6. I undertake to provide a fresh declaration promptly in case of any change in the facts
given above. I also undertake to provide fresh declaration for each financial year by 15th
April of the year.
7. I undertake to indemnify your Bank any tax loss including interest and penalty which
may result on account of providing me tax benefits as per my declaration. The obligation
to indemnify shall survive indefinitely.
8. I under take to provide my Tax Residency Certificate from the Tax Authorities of my
country of residence.
9. I confirm that any delay or failure to provide any information as desired by your Bank,
will allow the Bank to apply the income tax rate provided in Indian Income Tax Act,
1961 ignoring the lower rate in the Tax Treaty.
10. I confirm that your Bank will not be liable to refund any withholding tax deducted from
the said interest income.

(SIGNATURE

Date: _______
Place: _______

NAME: ____________________________
ACCOUNT DETAILS: __________________

Annexure-4
RATES OF TDS FOR FY 12-13
Sr.
No
1.

Sec

Nature of Payment

194A

Interest paid on Deposits to a customer


residing in India

2.

194C

Payment to a contractor / sub-contractor


residing in India
- Payment to a contractor or sub-contractor who
is an individual / HUF
- Payment to a contractor or sub-contractor who
is not an individual / HUF

3.

194H

Commission or Brokerage to a person residing


in India

4.

194 I

Rent to a person residing in India


- Rent of plant and machinery

5.

6.

194J

195

- Rent of land or building or furniture or fitting


Professional fees, technical fees, royalty
paid or payable to a person residing in India.
Note: Remuneration (other than salary) paid to
Director w.e.f 01.07.2012 (not applicable to
branches)
Interest on NRO deposits
- If the customer is a resident of a country with
whom India has entered into Double Tax
Avoidance Agreement (DTAA) Refer
Annexure -1

TDS
Rate**
10%

1%

2%
10%

2%
10%
10%

Rate as
per DTAA

When TDS is
applicable
If total interest paid
during a financial year
exceeds Rs.10,000.
If contract payment
exceeds
-Rs30,000 per single
contract payment or
-Rs75,000 in aggregate
during a financial year.
If aggregate
to the payee
financial year
Rs.5,000.
If aggregate
to the payee
financial year
Rs. 1,80,000.
If aggregate
to the payee
financial year
Rs.30,000.

payment
during a
exceeds
payment
during a
exceeds
payment
during a
exceeds

TDS is applicable on
any
sum
paid
as
interest
on
NRO
deposits to a NRI
customer.

- If the customer is a resident of a country with


30.90%
whom no DTAA has been entered by India.
** If the recipient of income does not furnish PAN to the Bank, TDS should be deducted at
the rate of 20% or normal rate whichever is higher.
Note:
1. If the recipient is a person residing in India, then surcharge, education cess, higher
education cess is not applicable.
2. If the recipient is a foreign company and the total payment (before TDS deduction) to
such foreign company exceeds Rs.1 crore, then surcharge @ 2% is applicable.
3. Education cess and Higher Education cess is applicable on payment to a NRI person or
foreign company.

Annexure -5
FREQUENTLY ASKED QUESTIONS AND ANSWERS
Sr.
No
1.

2.

3.

4.

5.

6.

7.

Frequently asked questions

Answers

Mr. X wishes to receive interest Yes.


without deduction of TDS and Mr. X can submit either
approaches the Branch.
- Form 15 G/H (Refer Point A II
on Page 2 of this Circular ) OR
Can Mr. X avail exemption from - Certificate under Sec 197(1) (Refer
TDS?
Point A- III on Page 3 of this
Circular)
Can a NRI customer submit Form No.
15G/15H and avail TDS exemption? Form 15G/15H certificate is applicable
only to a customer who is resident in
India.
Mr. A is a NRI customer residing in Mr. A will have to submit the following:
UK. He wants to avail the benefit of -Tax Residency Certificate
Double Tax Avoidance Agreement - Declaration to the Branch.
(DTAA).
(Refer Point AV on Page 3 of this
Circular)
What documents should the Branch
obtain from Mr. A?
Mr. B has a Fixed Deposit with the Yes.
Bank. Mr. B receives monthly
interest on his FD. He had Mr. B should submit Form 15G at the
submitted Form 15G to avail TDS beginning of every financial year.
exemption during FY-11-12.
Does he have to submit Form 15G
for every year?
In the above case, when should Mr.
B submit Form 15G declaration for
availing TDS exemption for FY 1213?
Whether TDS is required to be
deducted on interest payment on
deposits made by any Co-operative
Bank?

Refer Point A-I on Page 2 of this


Circular)

Can the branch refund the TDS


deducted on interest paid to Mr. B
prior to submission of Form 15G on
15.05.2012?

No.
The Bank cannot refund TDS which was
deducted prior to submission of form
15G.

Mr. B should submit Form 15 G in April


2012 before interest is paid /credited to
his account.
No.

CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,


Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 1 of 3

Sr.
No
8.

9.

10.

11.

12.

13.

14

Frequently asked questions

Answers

Mr. X had submitted Form 15G in Exemption from TDS can be availed
April 2012. Interest paid to Mr. X by submitting Form 15G only if total
during FY 12-13 is Rs.2,05,000. Is income of Mr. X for FY 12-13
tax deductible u/s 194A
(including interest earned from Bank)
is less than the basic exemption limit
i.e Rs. 2,00,000.

Should
the
Branch
take
into
consideration
other
deduction
available to the customer while
verifying
Form
15G
from
the
customer?
(For eg: int on housing loan, eligible
investments for deduction u/s 80C)
A customer Mr. C does not have a
PAN. Can the Branch accept a
declaration in Form 15 G submitted
by Mr. C ?
If a bill has fees/ charges plus service
tax, should TDS be deducted on the
total bill amount OR only on
fees/charges?
The Branch is paying lease rent of
Rs. 10,000 pm to 3 people who are
jointly the landlords of the property.
Is the branch liable to deduct tax?
As per lease agreement the Branch is
liable pay interest free deposit which
will be refunded after the expiry of
lease agreement. Should the branch
deduct TDS on such payment?
As per lease agreement the Branch is
liable to pay 3 month advance rent
in the form of interest free deposit
which will be adjusted against the
last three months rent payable by
the Branch.

Since, his interest income exceeds Rs.


2,00,000 Bank is liable to deduct TDS
from the total interest paid to him.
No.
The branch is not required to consider
other deductions available to the
customer while verifying Form 15G
from the customer.

No.
The customer has to mention his PAN
in the declaration Form 15G.
TDS should be deducted on the total
Bill amount i.e. inclusive of service
tax except in case of rent paid to a
lessor.
No.
The branch is not liable to deduct tax
since payment to each person does
not exceed Rs. 1,80,000 per annum.
No.
The branch is not required to
deduct TDS since it is a refundable
deposit.
Yes.
The branch should deduct TDS, if total
rent (including the 3 month advance
rent) paid to the landlord exceeds
Rs. 1,80,000 per annum.

Should the branch deduct TDS in the


above case?

CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,


Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 2 of 3

Sr.
No
15.

16.

17.

18.

19.

20.

21.

22.

Frequently asked questions

Answers

Is the Branch liable to deduct tax u/s If the total payment (including the
194 J on advance fees paid to an advance fees) to the advocate during
advocate?
a financial year exceeds Rs. 30,000
then the branch is liable to deduct
TDS.
What will be the consequence if the The branch is liable to pay penal
Branch fails to deduct tax on any interest @1% from the date on
payment?
which tax was deductible to the date
on which tax is actually deducted.
What will be the consequence, if the The Branch is liable to pay penal
branch has deducted tax on time interest @ 1.5% from the date on
but forgot to remit to the which tax was actually deducted to
governments account by the due the date on which tax is actually paid.
date?
If the customer does not have PAN, If the customer does not mention his
at what rate will tax be deducted PAN TDS will be deducted @ 20%.
from interest payable to him?
Note: TDS applicable only if
interest paid exceeds Rs. 10,000
Mr. P deposits cash of Rs. 55,000 in Mr. Qs PAN should be quoted on the
Mr. Qs account. Whose PAN no. deposit receipt since Mr. Q is the
should be quoted in the deposit customer of the Bank.
receipt Mr. P or Mr.Q?
In the above example, if Mr. P has Yes.
signed the deposit receipt and quoted
Mr. Qs PAN ?
The branch can accept the deposit
since Mr. Qs PAN is quoted in the
Can the branch accept such deposit deposit receipt irrespective of who has
receipt?
signed it.
Mr. A has submitted a copy of his No.
PAN card while opening the account
with the Bank. Should he submit a Mr. A is not required to submit a copy
copy of PAN card every time he of his PAN card every time he
deposits cash above Rs. 50,000?
deposits cash above Rs. 50,000.
However, Mr. A has to mandatorily
quote his PAN in the deposit receipt.
Mr. B deposits cash in installments Yes.
i.e Rs. 10,000, Rs. 15,000 and Rs.
27,000 during one day. Should Mr. B If cash deposited in aggregate exceed
quote his PAN in the deposit receipt? Rs. 50,000 during any one day, the
customer has to mandatorily quote his
PAN in the deposit receipt.

CORPORATE ACCOUNTS &TAXATION DEPARTMENT, BARODA CORPORATE CENTRE,


Bandra Kurla Complex, Bandra (East), MUMBAI 400 051
Phone: (022) 6698 5288 Fax: (022) 2652 6891. Email: tax.bcc@bankofbaorda.com
Page 3 of 3

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