HDFC Bank and Housing Development Finance Corporation (HDFC) have merged into one entity starting from July 1, 2023. This merger brings some changes for HDFC customers, especially when it comes to getting a Tax Deducted at Source (TDS) certificate for filing their income tax returns (ITR).
Now, with the deadline for filing ITR for the fiscal year 2022-23 on July 31, HDFC customers are a bit worried about how to get their hands on that TDS certificate they need. So, let us break down the key changes you need to know:
TDS Deduction Threshold: If you were an HDFC Limited customer, TDS would be deducted if your earnings crossed Rs 5,000. But after the merger, the new threshold will be increased to Rs 40,000 (or Rs 50,000 if you’re a senior citizen) for all existing HDFC Limited customers.
Adjustments and Credits: If HDFC Limited had already deducted TDS from your income before the merger using the old threshold of Rs 5,000, that amount will be adjusted towards your future TDS obligations for this financial year. However, if there are no future TDS obligations, you will need to claim that amount as a credit while filing your tax returns with the TDS certificate issued. Just keep in mind that HDFC Bank cannot refund TDS that was correctly deducted by HDFC Limited before the merger.
Interest Payments and TDS: If the total interest you received from HDFC Limited and HDFC Bank during the year exceeds Rs 300,000 (Form 15G) or Rs 700,000 (Form 15H), things change a bit. In such cases, the Form 15G/H you submitted becomes invalid, and TDS will be deducted on the entire interest amount. Also, if you submitted Form 15G/H between April 1, 2023, and June 30, 2023, but your PAN becomes inoperative (due to Aadhaar linkage issues) on July 1, 2023, the submitted Form 15G/H will also be considered invalid, and TDS will be deducted accordingly.
Validity of Tax Exemption Certificates: If you had given lower or nil tax exemption certificates or DTAA documents to HDFC Limited before the merger, they will still be valid throughout the financial year.
Form 15G/H for Fixed Deposits (FDs): If you had already submitted Form 15G/H for FDs you placed with HDFC Limited before the merger, those forms will still be valid. If you open a new FD after the merger, you will have to submit an additional Form G/H specifically for the new FD. Existing HDFC Limited customers can keep using the current process or platform for submitting Form 15G/H for FDs booked during the post-merger period.
Form 15G/H at FD Level: Instead of submitting Form 15G/H at the PAN level, you will now need to submit it at the FD level. That means one single Form G/H can cover all the existing FDs you have until the date of submission.
Separate Submission for HDFC Limited and HDFC Bank: If you happen to have FDs with both HDFC Limited and HDFC Bank, make sure to submit Form G/H separately for each of them. Existing customers of HDFC Limited and HDFC Bank can continue using their current processes or platforms for submitting Form 15G/H for FDs booked during the post-merger period.
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