SCSS 2004: Nominees Can Now Submit Form 15-G for TDS Exemption (CBDT Clarification May 14, 2009)

What changed

Previously, only the original SCSS investor could file Form 15-G or 15-H for TDS exemption. Now, after the depositor's death, the nominee can also submit Form 15-G at the time of interest payment to avoid tax deduction.

What it means for you

Banks handling SCSS accounts must accept Form 15-G from nominees of deceased depositors and ensure TDS is not deducted on interest payable to them. This reduces compliance burden for nominees and aligns with CBDT's clarification. Designated branches need to be informed and trained on this change.

What banks were required to do at the time

• Update internal guidelines to accept Form 15-G from nominees of deceased SCSS depositors.
• Train branch staff on processing Form 15-G for nominees at the time of interest payment.
• Communicate this circular to all designated branches handling SCSS accounts.
• Acknowledge receipt of this circular to RBI as instructed.

Who it affects

Banks handling SCSS accounts (SBI, State Bank of Indore, State Bank of Patiala, State Bank of Bikaner & Jaipur, State Bank of Travancore, State Bank of Hyderabad, State Bank of Mysore, Allahabad Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of India, Corporation Bank, Dena Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India, ICICI Bank Ltd, Vijaya Bank, IDBI Ltd), Nominees of deceased SCSS depositors, Designated branches of listed banks