Post merger, how HDFC customers can get TDS certificate for ITR filing Here are important FAQs on TDS, PAN Card on Form 15G after the merger, according to the HDFC Bank website
Housing Development Finance Corporation (HDFC), a mortgage lender, and HDFC Bank, a private sector bank, became a merged entity as of July 1.According to the HDFC Bank website, “Post the merger, HDFC Bank has no identified promoter. It also marks the transformation of HDFC Bank into a financial services conglomerate that offers a full suite of financial services, from banking to insurance, and mutual funds through its subsidiaries. So far, the Bank was a distributor for these products.”
Post merger, the key HDFC Bank subsidiaries include HDFC Securities Ltd., HDB Financial Services Ltd., HDFC Asset Management Co. Ltd, HDFC ERGO General Insurance Co. Ltd., HDFC Capital Advisors Ltd. and HDFC Life Insurance Co. Ltd.
Here are important FAQs on TDS, PAN Card on Form 15G after the merger, according to the HDFC Bank website.
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1. What is the threshold limit for TDS deduction for HDFC Limited customers after merger?
The existing threshold limit for TDS deduction is Rs 5,000 for the customers of the HDFC Limited. After merger threshold limit of Rs 5,000 will change to Rs 40,000 (Rs 50,000 for senior citizens) for all the existing customers of HDFC Limited.
Interest paid/ reinvested/ accrued by both HDFC Bank and HDFC Limited for the full financial year will be added for arriving at the threshold of Rs 40,000 (Rs 50,000 for senior citizens)
TDS will be deducted when the actual interest paid/accrued/reinvested exceeds the threshold limit of Rs 40,000 (Rs 50,000 for senior citizens) as against the earlier methodology of deducting basis projected interest exceeding the threshold of Rs 5,000.
Example: Assuming the interest paid to a customer is Rs 22,000 for deposits with HDFC Limited and the same customer is paid interest of Rs 20,000 by HDFC Bank. As the combined interest is Rs 42,000, TDS will be deducted on the aggregated interest.
2. What if TDS has already been deducted by HDFC Limited basis earlier threshold of Rs 5,000 while the new threshold of Rs 40,000 is not breached?
The threshold limit of TDS deduction for HDFC Limited customers will change from Rs 5,000 to Rs 40,000/- (Rs 50,000/- for senior citizens). If any TDS is already deducted before merger by HDFC ltd basis earlier threshold of Rs 5,000, it will be adjusted towards future TDS obligation for the Financial Year. However, if such adjustment cannot happen as there is no future TDS obligation, then the customer will have to claim credit while filing his tax returns basis the TDS certificate issued. HDFC Bank cannot make refund of TDS rightly deducted by HDFC Ltd in the pre-merger period.
If customer has Term deposit both with HDFC Limited and HDFC Bank , from which TAN would these customer receive receipt of TDS certificate for the current FY year?
In the initial Year of Merger (FY 23), TDS return will be filed under two TANs (of HDFC Limited and HDFC Bank), there will be two TDS certificates for common customers (customers having Term deposits both with HDFC Limited and with HDFC Bank). The existing process of despatch TDS certificates will be used by HDFC Limited and HDFC Bank respectively.
eriod Paid/Accrued Amount Paid- HDFC Limited Amount Paid- HDFC Bank Limited Cumulative Total TDS Remarks23-JunPaid7,0003,75010,750700TDS deducted by HDFC Limited basis earlier threshold of Rs 5,000 June-30 :Merger of HDFC Limited with HDFC Bank 23-SepPaid7,0003,75021,500-No TDS as combined interest paid is less than the new threshold of Rs 40,000 after merger. 23-DecPaid7,0003,75032,250-No TDS as combined interest paid is less than Rs 40K 24-MarPaid7,0003,75043,0003,600TDS @10% to be deducted as threshold of Rs 40,000 exceeded. Net TDS of Rs 3600 deducted after adjusting for Rs 700 deducted earlier ( Rs 4300-Rs 700) Total28,00015,00043,000 4,300
3. Form 15 G / H submitted to HDFC Ltd still valid (Pre-Merger period)?
Form 15 G / H submitted by customers of HDFC Limited for FDs placed with HDFC Limited before merger will be valid.
However, If a customer places any fresh FD post-merger, he will need to submit additional Form G/H for the new FD. Existing customers of HDFC Ltd can continue to use the current process / platform for submitting Form 15 G/H for FD booked in post-merger period.
4. FD Booked with HDFC Limited and Form 15 G/H submitted with HDFC Limited but renewed with HDFC Bank after merger, is fresh Form 15 G/H is required?
If Form 15 G/H was submitted with HDFC Limited prior to merger and such FD is renewed after merger. Such renewal of FD will happen with HDFC Bank, and a fresh 15 G/H will be required to be submitted by customer.
NRI Customers can submit DTAA request at HDFC Bank to avail concession TDS on NRO Deposits.
5. Is Form 15 G/H to be submitted at FD level or at PAN level post-merger?
Customers will be required to submit the Form 15 G /H at FD level and not PAN level.
One single Form G/H can contain the details of all the existing FDs booked till that date.
Example: On 30th September 2023 - Two new FD were booked and one FD was renewed for a customer, Customer can submit one Form 15 G / H for all these three FD on or after 30th September 2023.
6. I have FD with both HDFC Limited and HDFC Bank. Do I need to submit separate Form G/H?
Yes, Form G/H will need to be submitted separately. Existing customers of HDFC Limited and Bank can continue to use the respective existing process / platform for submitting Form 15 G/H for FD booked in post-merger period.
NRI Customers can submit DTAA request at HDFC bank to avail concession TDS on NRO Deposit separately.
7. I have submitted Form 15G/H to HDFC Limited, however TDS has still been deducted post-merger ?
The amount of interest paid/accrued during the year has exceeded the threshold limit of Rs. 300,000/- (Form15G) or Rs 700,000/- (Form 15H). When the total interest paid by HDFC Limited & HDFC Bank crosses the threshold limit mentioned herein, Form 15G/H becomes invalid and TDS is deductible on entire interest paid.
Further if Form 15 G/H was submitted during the period between 1st April 2023 to 30th June 2023 and if the PAN becomes inoperative (for PAN not having linked Aadhar) on 1st July 2023 than the Form 15 G/H submitted becomes invalid and TDS will be deductible as applicable.
8. How would special tax rate cases will be handled post -merger i.e. DTAA / lower or nil tax exemption certificates?
All the customers of HDFC Limited who have given lower or nil tax exemption certificates/DTAA documents during the year before effective date of merger will be considered good and valid through the Financial Year.
Further customers can continue to provide the Lower or nil tax exemption certificates / DTAA documents as per the extant process in the Financial Year 2023-24 even after merger.
9. How would the TDS return be filed? From where would I get TDS certificate for the current FY year.
As the TDS return will be filed under two TANs (of HDFC Limited and HDFC Bank) in the initial year of merger, there will be two TDS certificates for common customers for HDFC Limited & HDFC Bank. The existing process of despatch of TDS certificates will be used by HDFC Limited & HDFC Bank respectively.
10. Would linking of PAN – Aadhaar required?
All Individual customers having PAN (where the 4th character of PAN is ‘P’) are required to link PAN and Aadhaar.
11. Would there be an impact if PAN & Aadhaar is not linked ?
If PAN is not linked with Aadhaar, such PAN will become inoperative w.e.f. 1st July 2023 and customer will not be allowed to submit Form 15 G/H and higher TDS deduction will be applicable for inoperative PANs.
For any further query please reach out to 022-67546060 or write to [email protected]
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This story originally appeared on: India Times - Author:Faqs of Insurances
