Sri Partha Kumar Basu, Hon’ble Member:
The case is filed by the complainant against the OP bank in the matter of deficiency of service u/s 35 of the Consumer Protection Act 2018.
The case of the complainant is that being a senior citizen, he opened a Saving Account at the OP Bank and deposited Form 15H every financial year within due time. But on 01.06.2018 the complainant came to know that his account has been debited on account of TDS (Tax Deduction at Source). The complainant filed complaint before the Branch Manager and Regional Manager of the Bank by registered post and also approached them but without any respite. Hence, the complainant files this complaint for refund of the TDS amount that was deducted for Rs.4,004/- along with interest of Rs.11,053/- and a compensation of Rs.5,000/- for mental agony and harassment caused to him with an award of cost. The complainant filed copy of the complaint before the local office of the CA&FBP which shows that the OP disagreed to the claim of the complainant which also failed in mediation.
In their W/V the OP Bank contested by stating that the complaint case is not maintainable and suffers from law of limitation. The OP did not oppose that a DRC Account was opened by the complainant opened in 2018 when a sum of Rs.4004/- was deducted by OP bank as per income tax rules. The OP claims that the deduction was legitimate as per IT Rules which was deposited at the Govt. Treasury at the end of financial year.
It is conspicuous from the exhibited Form-15H dated 06.04.2018 (2018-2019)and dated 17.04.2017 (2017-2018) for those Six number of accounts for an aggregate amount of income of Rs.96,000/- that both of the Forms 15H are duly filled up and signed by the complainant and from the acknowledged copies of both of those Form No.15H, it appears that the Forms were filled up and deposited within 1 month of the corresponding financial year which is well within due time limit as per Section 197(A)(1C) and Rule 29C of the Income Tax Act, 1961. As per the complaint dated 11.05.2018 filed by the complainant before the Bank it is stated that Rs.4,004/- was deducted on account of TDS from those Six number of accounts maintained in the Bank. From the copy of the exhibited Form 15H duly sealed, stamped and signed by the OP Bank, it is clear that those forms were received on 17.04.2017 and 06.04.2018 by the branch of the bank. Once the assesse (declarant) files a declaration U/S 197A (JC)which is declared by an individual of the age of 60 years or more claiming certain income without deduction of tax being within his / her total income within the applicable slab of non-taxable amount, the OP is under obligation and has no authority to deduct tax at source in terms of the IT Act, unless reasoned otherwise. The OP has not dealt this moot point of dispute about the reason to not give effect of the TDS in the complainant’s account as per his submitted declaration in time. In their W/V or evidence of the OP bank, neither the same got reflected in the BNA or from the exchanges of Question and Replies. The OP bank has also not contested the facts or amounts raised in this case.
Form 15H is a self-declaration form that can be submitted by senior citizen aged 60 years or above to avoid TDS liability on interest earned from investments in fixed deposits and recurring deposits. Form 15H is a part of Section 197A, Subsection 1C of the Income Tax Act, 1961.Form 15G and Form 15H are valid for one financial year. These forms every year are normally submitted to banks at the beginning of the financial year. This will ensure that the bank does not deduct any TDS on interest income. This way TDS deduction by the bank or any institution that is liable to deduct TDS from income on interest can be avoided.
As such, the complaint case gets established and the OP bank is held liable for deficiency in services.
Hence, it is
ORDERED
That the instant case, be and the same is hereby allowed on contest against the OPs with cost.
- The OPs, jointly and severally, are liable and directed to reimburse an amount of Rs.11,053/- (Rs. Eleven Thousand and Fifty Three) only to the complainant on account of delayed interest within 60 days from the date of passing this order.
- The OPs, jointly and severally, are also liable and directed to pay a compensation of Rupees 3,000/- (Rs. Three Thousand) only to the complainant and a cost of Rs.1,000/- (Rupees One thousand) only within 60 days from the date of passing this order.
All the above orders are to be complied by OP within 45 days from the date of passing of this order failing which the complainant is at liberty to put the entire order into execution after the expiry of 45 days against OP no 1 and OP no 2.
Let a copy of the order be supplied free of cost to the parties as per CPR.
That the final order will be available in the following website www.confonet.in.
Dictated and corrected by me.
Member
