CosmicCat
TF Ace
This incident happened with my dad back in Jan '25. My dad holds a couple of Senior Citizen Savings Scheme (SCSS) deposits at SBI. Like every year, he also submitted the Form 15H online for all his SCSS deposits in the beginning of the financial year (April '24).
Back in October '24, he opened an FD of ₹50,000 with a tenure of 3 months. It was his first and the only FD held during that financial year with SBI. Since the principal amount and the tenure was short, he didn't bother to file Form 15H for it.
He was expected to earn an interest of ₹699 upon its maturity on 1st Jan '25. But when it was matured, he was stunned to notice that instead of crediting ₹50,699 into his savings account, they credited ₹45,729 only! So, they essentially deducted around ₹5,000 from the principal amount!
When I looked at the FD's statement, I was stunned to see the following transactions:
While deducting a TDS of ₹70, which is 10% of 699 (The interest amount upon maturity), stands justified, but why would they debit ₹4,900 more as "Tax on Previous Interest" when the Form 15H for all other deposits were already submitted beforehand?
He raised a complaint at their CMS portal the same day, and got the following response from the bank:
"Customer is advised that TDS is deducted from term deposit accounts at the time of interest payout or on 31st March if interest paid + accrued for all term deposit accounts at CIF level exceeds threshold limit. Tax on previous interest is deducted to compensate the less TDS deduction at CIF level in a particular FY. On 01.01.2025, threshold limit was crossed. Tax on previous interest is deducted from account which comes first for interest payout which may result in dipping of principal amount. Team SBI."
This makes no sense at all! He even coordinated with the Branch Manager various times, but they were helpless and provided no solution.
Even the TRACES portal shows no trace of this TDS deduction (Perhaps since they haven't submitted the details of the TDS for the Jan-Mar '25 quarter yet.)
He raised no complaints thereafter. So, I need you guys' opinion about what I should do next:
Back in October '24, he opened an FD of ₹50,000 with a tenure of 3 months. It was his first and the only FD held during that financial year with SBI. Since the principal amount and the tenure was short, he didn't bother to file Form 15H for it.
He was expected to earn an interest of ₹699 upon its maturity on 1st Jan '25. But when it was matured, he was stunned to notice that instead of crediting ₹50,699 into his savings account, they credited ₹45,729 only! So, they essentially deducted around ₹5,000 from the principal amount!
When I looked at the FD's statement, I was stunned to see the following transactions:
While deducting a TDS of ₹70, which is 10% of 699 (The interest amount upon maturity), stands justified, but why would they debit ₹4,900 more as "Tax on Previous Interest" when the Form 15H for all other deposits were already submitted beforehand?
He raised a complaint at their CMS portal the same day, and got the following response from the bank:
"Customer is advised that TDS is deducted from term deposit accounts at the time of interest payout or on 31st March if interest paid + accrued for all term deposit accounts at CIF level exceeds threshold limit. Tax on previous interest is deducted to compensate the less TDS deduction at CIF level in a particular FY. On 01.01.2025, threshold limit was crossed. Tax on previous interest is deducted from account which comes first for interest payout which may result in dipping of principal amount. Team SBI."
This makes no sense at all! He even coordinated with the Branch Manager various times, but they were helpless and provided no solution.
Even the TRACES portal shows no trace of this TDS deduction (Perhaps since they haven't submitted the details of the TDS for the Jan-Mar '25 quarter yet.)
He raised no complaints thereafter. So, I need you guys' opinion about what I should do next:
- Should I raise it to the Nodal Office and thereafter to RBI Ombudsman if unsatisfied and demand a hefty compensation?
- Or just be patient, and get the TDS refunded back after filing the ITR (Which he shall do in June/July)?
- Or anything else?
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