TDS deducted under Wrong Section

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  1. AKD

    AKD Member

    I held an account under Senior Citizens' Savings Scheme (SCSS) in a Post Office in Kolkata till a few years ago. Under this scheme postal authority is required to deduct tax at source and deposit the same to the GOI under proper head of accounts while paying quarterly interest. It is called interest other than "interest on securities" and tax at source is deducted u/s 194A of IT Act, 1961.
    It is reflected as such in 26AS of the tax payer.
    In one instance of my case TDS has been booked u/s 194H not 194A and appears as such in 26AS. 194H of IT Act is for TDS on commission or brokerage.
    I fail to understand why it has been done so.
    Is there any situation in which TDS on SCSS interest may be booked u/s 194H?
    Or, is it a pure mistake. If so, is there any procedure for rectification?
  2. rudrabose

    rudrabose Active Member

    Section 194H is applicable in case of Commission/ Brokerage.

    Interest on Senior Citizens Saving Scheme cannot be classified under this section and seems to be a mistake by the Post Office.

    You should contact the Post Office and ask them the reason for the same and request them to rectify it.
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