Kerala

Kottayam

CC/3/2019

Jemerson P James - Complainant(s)

Versus

Muthoot Finance Ltd - Opp.Party(s)

28 Nov 2022

ORDER

Consumer Disputes Redressal Forum, Kottayam
Kottayam
 
Complaint Case No. CC/3/2019
( Date of Filing : 10 Jan 2019 )
 
1. Jemerson P James
Represented By its Mother and authorised representative Smt.Mercy Jacob Panayolil House, Mother Theresa Road, Ettumanoor
Kottayam
Kerala
...........Complainant(s)
Versus
1. Muthoot Finance Ltd
Branch Manager Muthoot Finance Ltd Ettumanoor
Kottayam
Kerala
............Opp.Party(s)
 
BEFORE: 
 HON'BLE MR. V.S. Manulal PRESIDENT
 HON'BLE MRS. Bindhu R MEMBER
 HON'BLE MR. K.M.Anto MEMBER
 
PRESENT:
 
Dated : 28 Nov 2022
Final Order / Judgement

IN THE CONSUMER DISPUTES REDRESSAL COMMISSION, KOTTAYAM

Dated, the 28th day of November, 2022.

 

Present:  Sri. Manulal V.S. President

Smt. Bindhu R. Member

Sri. K.M. Anto, Member

 

C C No. 03/2019 (Filed on10-01-2019)

 

Petitioner                                  :         Jemerson P. James,

                                                          Rep. by his mother and authorized

                                                          representative Smt. Mercy Jacob

                                                          Pamayolil,

                                                          Mother Theresa Road,

                                                          Ettumanoor P.O.

                                                          Kottayam – 686631.

 

                                                                     Vs.

 

Counter Petitioner                     :         Branch Manager,

                                                          Muthoot Finance,

                                                          Ettumanoor.

(Adv. Vinu Jacob Mathew)

 

                                                O  R  D  E  R

Sri. K.M. Anto, Member

     The complaint is filed under section 12 of the consumer protection act 1986.

The brief of the complaint is as follows. The complainant made 3  deposits of Rs.18,000/- each with the opposite party during the year  2011-12.                            The deposits were renewed on maturity till the closing of the deposits in the year 2016-17. At the time of closing of the deposits the opposite party informed that TDS had been deducted from the interest. On enquiry about the details of TDS recovery the opposite party issued the statement dated 21.03. 2017. From this statement it was revealed that TDS was deducted on 23.09.2015 and on 20.08.2016.

The complainant’s father approached the opposite party several times for getting the TDS traces but the TDS Traces were not given by the opposite party.

On 25.07.2017 a written complainant was given to the opposite party.                 A complaint was given to the Head office of opposite party at Ernakulum on   7.07.2017 and another complaint was given to the regional office of opposite

party at Kottayam on 31.7.2017 for getting the TDS Traces.

As per the income tax rules Rs.2,50,000/-is the minimum income limit for filing income tax return. The complainant is a student and has no other income other than stipend. If the interest on the fixed deposit is below 10,000/- the TDS need not be deducted.

The act of the opposite party is deficiency in their Service. The opposite party is liable to refund the TDS amount illegally collected and to pay  compensation for the mental agony and sufferings along with cost for this litigation. Hence this complaint is filed.

On admission of the complaint copy of the complaint was duly served to the opposite party. The opposite party appeared and filed their version.

The version of the opposite party is that as per the instruction of central

Government, 20% of the interest has to be deducted as TDS for depositors not

having Pancard. The complainant was not having Pan card in 2015-16.                               An amount of Rs.537/- was deducted from the interest of RS 2691/-.in the year 2015-16. This TDS amount was remitted to Govt account on 30.04. 2016.                                    The complainant had taken the pan card and had given the Pan Card details to this opposite party in the year 2016-17. Hence TDS was not deducted for the year 2016-17. The complainant had given the pan card only in the year 2016-17.                      The TDS traces were received on 13.09.17 and were given to the complainant. There is no deficiency in service or delay on the part of the opposite party.                        The complainant is not eligible to get any amounts as claimed in the complaint.

The complainant filed proof affidavit and marked documents Exhibits A1 to A3. The opposite party filed proof affidavit and marked documents Exhibits B1 to B2. The complainant was cross examined by the opposite party.

On the basis of the complaint, Version of the opposite party and evidence

adduced we would like to consider the following points.

 (1 ) Whether there is deficiency in service on the part of the opposite party?

(2)  If so, what are the reliefs and costs?

For the sake of convenience, we would like to consider point No1 and 2 together

Points 1 and 2

Ongoing through the complaint, version of the opposite party and evidence on record, it is clear that the complainant had made three deposits of Rs18,000/- each with the opposite party at the rate of 12% interest for the period from 23/03/2014 to 23/09/2015. The 3 deposits were renewed for the period from 23/09/2015 to 20/08/2016 at the rate 9.5% interest. Thus, the complainant was having total deposit of Rs.54000/-.with interest 9.5 % for the period from 23.09.2015 to 31.03.2016 in the financial year 2015-16. The opposite party had deducted Rs.537/- as TDS from the accrued interest of

Rs.2691/- for the period from 23/09/2015 to 31/03/2016.

Now the question is whether the complainant can deposit Rs.54,000/- as time deposit with the opposite party and whether the opposite party can accept the Time deposit for an amount of Rs,54,000/- from the complainant without having a pan card.

The Income Tax ACT1961, Section 139 A, rule 114 B the following conditions were given with regard to Time deposits.

114B.  Every person shall quote his permanent account number in all documents pertaining to the transactions specified in the Table below, namely: — (12)

A time deposit with,—

(i) a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act);

(ii) a Post Office;

(iii) a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); or

(iv) a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public.

 

 

Amount exceeding fifty thousand rupees or aggregating to more than five lakh rupees during a financial year.

 

From the above rule it is clear that pan card is mandatory for making deposits

exceeding 50,000/- rupees or aggregating to more than five lakh rupees.

This shows that the opposite party had accepted the fixed deposit of Rs.54,000/- as three deposits since the complainant was not having a Pan card.

Now the question is whether the opposite party is bound to deduct 20% of the

interest on the fixed deposits of the complainant as TDS.

Section 194 of IT Act gives the rules for the deduction of TDS.

As per section 194A, tax is to be deducted at the time of payment or credit of interest (to any account by whatever name called), whichever is earlier.

No tax is required to be deducted if aggregate amount of interest credited or paid to the payee in respect of time deposit during the financial year doesn’t exceed the following limit:

Payer

Threshold limit if Payee is

 

Senior Citizen

Others

Banking Co.

50,000

40,000

Co-operative Society engaged in banking business

50,000

40,000

Post Office

50,000

40,000

In any other case

5,000

5,000

 

The ceiling limit as specified above shall not be computed branch-wise if such

banking company or co-operative society or public company has adopted Core

Banking Solutions (CBS). For the above purposes “time deposits” means deposits

including recurring deposits repayable on the expiry of fixed periods.

Form the above discussed findings it is clear that the total interest on the three deposits of Rs.54,000/- for the financial year 2015-16 is only Rs.2691/- which is below Rs.5000/-.Hence the act of the opposite party in deducting Rs 537/- as TDS from the interest of RS.2691/- for the financial year 2015-16 was against the rules specified in section 194A of IT Act. Even though the opposite party claimed that they had deducted the TDS amount from the interest as per government directions, no such government direction had been produced by the opposite party.

It is clear that the opposite party had failed to give the promised interest amount to the complainant. The opposite party is bound to give Rs.537/-  to the complainant. This act on the part of the opposite party is deficiency in their service and point no 1 and 2 are found in favor of the complainant. We allow the complaint and pass the following orders

  1.  The opposite party is directed to pay Rs.537/- to the complainant
  2.  The opposite party is directed to pay RS.5,000/- as compensation for the mental agony and sufferings to the complainant with cost RS.3000/-.

The order shall be complied within 30 days from the date of receipt of the copy of this order. If not complied as ordered the amounts will carry 9% interest per annum from the date of this order till realization.

Pronounced in the Open Commission on this the 28th day of October, 2022

Sri. K.M. Anto, Member                  Sd/-

Sri. Manulal V.S. President             Sd/-

Smt. Bindhu R. Member                  Sd/-

 

Appendix

Exhibits marked from the side of complainant

A1 – Copy of statement dtd.01-03-17 issued by opposite party

A2 - Copy of statement dtd.01-03-17 issued by opposite party

A3 - Copy of statement dtd.01-03-17 issued by opposite party

Exhibits marked from the side of opposite party

B1 – Copy of PAN card in the name of complainant

B2 – Form No.16 A from TDS

 

                                                                                           By Order

                                                                                                Sd/-

                                                                                 Assistant Registrar

 

 
 
[HON'BLE MR. V.S. Manulal]
PRESIDENT
 
 
[HON'BLE MRS. Bindhu R]
MEMBER
 
 
[HON'BLE MR. K.M.Anto]
MEMBER
 

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