
The District Consumer Disputes Redressal Commission in Cuttack, Odisha, with Sri Debashish Nayak as President and Sri Sibananda Mohanty as Member, held the Post Office, Madhupatna S.O., responsible for service deficiency.
Background of the Case: Mrs. Sanjukta Sahu, a senior citizen, opened a “Senior Citizen Savings Scheme” (SCSS) account with the Post Office, Madhupatna. Despite providing identification, PAN number, and a deposit of Rs. 2,00,000/- during the account opening, the bank deducted a certain percentage of interest quarterly, citing the absence of her PAN number.
Discrepancy Discovered: Mrs. Sahu noticed the deduction during a visit to the bank on October 1, 2022, and requested a refund of the deducted amount.
Bank’s Justification: The bank justified the deduction, claiming a 20% reduction for TDS due to Mrs. Sahu’s alleged failure to submit a PAN card initially. It argued that TDS deductions ceased after she submitted the PAN card.
Complainant’s Contentions: Mrs. Sahu contested, asserting that she provided her PAN number during the account opening and that the deduction was unjustified.
District Commission’s Observations: During the proceedings, the District Commission noted that Mrs. Sahu’s application form had her PAN number. They clarified her entitlement to a tax exemption of up to Rs. 50,000/- on the interest component according to the Income Tax Act.
Lack of Communication by the Bank: The District Commission found that the bank failed to produce evidence of informing Mrs. Sahu about the scheme’s conditions or requesting Form 15G/15H from her.
Conclusion and Ruling: The District Commission determined that the bank’s deduction of Rs. 740/- (20% of quarterly interest) was a clear deficiency of service. They directed the bank to refund Rs. 2,960/- to Mrs. Sahu with interest, pay Rs. 20,000/- for mental agony and harassment, and Rs. 5,000/- for litigation costs.
Meager penalty
I had the same type of bitter experience twice.Though the PAN is available wtih them and despite my submission of Form 15H ,TDS of Rs 6161 was deducted.Its unfair o the part of Central Govt institution
I also had the same type of bitter experience twice. Though the PAN is available with them and despite my submission of 15H well in advance 20% of TDS Rs 6161/-was deducted. This is atrocious and unfair on the part of the Central Govt institution. Will the depatrment correct this at least in future
यह सीनियर सिटीजन के साथ बहुत बड़ा धोखा है इस पर सुधार करने की आवश्यकता है।
मेरे ब्याज से भी यहां काट लिया जाता है
Is this Court order is applicable for every account holder in post office Banking?