Resolving TDS Deduction Issues in Senior Citizen Savings Scheme (SCSS) Accounts in Post Office - Postalstudy | Post Office Blog | Materials for | Exams

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Resolving TDS Deduction Issues in Senior Citizen Savings Scheme (SCSS) Accounts in Post Office

Resolving TDS Deduction Issues in Senior Citizen Savings Scheme (SCSS) Accounts: A Call for Improved Processes

In a recent communication addressed to the Chief Postmaster General of Tamilnadu Circle, S.Sudeesh Kumar, representing the CS NAPE GRC TN, highlighted a recurring issue faced by SCSS customers regarding the deduction of Tax Deducted at Source (TDS) despite the submission and updating of Form 15H.

The Problem:

SCSS customers, particularly those with accounts opened in the financial year 2023-2024, have reported TDS deductions despite submitting Form 15H and having it updated by counter clerks. This inconsistency causes dissatisfaction among customers, raises grievances among pensioners, disrupts counter operations, and affects SCSS business overall.

Root Cause:

The issue appears to stem from a systemic glitch wherein the interest patch run by the Central Processing Centre (CPC) on 3rd April 2024, instead of the expected 31st March 2024, categorizes SCSS accounts opened during the financial year 2023-2024 as having Form 15H not updated, leading to automatic TDS deductions.

Response from CPC:

When the matter was raised with the CPC, their response cited the functionality as approved, suggesting recourse to Circle or Directorate for guidance on handling customer complaints.

Call to Action:

Given the widespread prevalence of this issue across various offices, urgent intervention is warranted at higher levels to rectify the process. The request is to address the matter comprehensively, ensuring a smoother experience for SCSS customers and preventing unnecessary TDS deductions. Timely resolution will not only restore customer confidence but also streamline operations at postal counters.


The persistence of TDS deduction issues in SCSS accounts despite Form 15H submission underscores the need for systemic improvements and proactive resolution mechanisms within the postal service. By addressing this issue promptly and transparently, authorities can uphold customer trust, foster operational efficiency, and mitigate grievances effectively. It's imperative to prioritize customer-centric solutions and uphold the integrity of financial transactions within the SCSS framework.

For the seamless functioning of SCSS accounts and the overall satisfaction of pensioners and customers, concerted efforts are required to rectify this recurrent issue and ensure compliance with regulations while minimizing inconvenience to stakeholders.

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