Many a time it has been observed that even though form 15G or form 15H has been submitted by the customer at the bank, still banks have deducted tax at source which eventually cause inconveniences to customer and they struggle to get the refund of the tax paid. This may happen because either the forms are misplaced or a track is not kept of forms received at the branches.
Reserve Bank of India, has received numerous complaints that TDS (Tax Deducted at Source) was done, even when the Form 15G/Form 15H was provided to the Bank.
To reduce such complaints and to increase customer service levels RBI vide Notification No.BI/2012-13/516 DBOD.No.Leg.BC.100/09.07.005/2012-13 dt. May 31, 2013 has advised Banks branches to give an acknowledgment at the time of receipt of Form 15-G/15-H.
The notification was released in consultation with IBA (Indian Banks’ Association) and the key benefits of this notification are;
a. Build a system of accountability at bank end
b. Reduce inconveniences to bank customers
c. Minimise resolution time for customer queries