How to Obtain a TDS Certificate for ITR Filing Following a Merger for HDFC Customers

Starting on July 1, 2023, HDFC Bank and Housing Development Finance Corporation (HDFC) will operate as a one organization. Customers of HDFC may experience various changes as a result of this merger, particularly with regard to obtaining a Tax Deducted at Source (TDS) certificate in order to file their income tax returns (ITR).

Now that the fiscal year 2022–23 ITR filing deadline is approaching on July 31, HDFC clients are a little concerned about how to get the necessary TDS certificate. Let’s summarize the main modifications you should be aware of:

If you were an HDFC Limited client, TDS would be withheld when your profits exceeded Rs 5,000. However, after the merger, the new barrier would be raised for all current HDFC Limited clients to Rs 40,000 (or Rs 50,000 if you’re a senior citizen).

Adjustments & Credits: Any TDS that HDFC Limited deducted from your income before to the merger using the previous threshold of Rs 5,000 will be applied to your current and upcoming TDS liabilities for this fiscal year. However, you must claim that sum as a credit when submitting your tax returns with the TDS certificate if there are no more TDS responsibilities. Just bear in mind that HDFC Bank is unable to reimburse TDS that HDFC Limited legitimately withheld prior to the merger.

Interest Payments and TDS: Things alter a little bit if the total interest you received from HDFC Limited and HDFC Bank throughout the year exceeds Rs. 300,000 (Form 15G) or Rs. 700,000 (Form 15H). In some situations, the Form 15G/H that you filed is rendered void, and TDS will be taken off the full amount of the interest. Additionally, if you filed Form 15G/H between April 1, 2023, and June 30, 2023, but your PAN becomes inactive on July 1, 2023 (due to problems with the Aadhaar connection), the submitted Form 15G/H will likewise be deemed invalid, and TDS will be taken out in accordance with that determination.

Validity of Tax Exemption Certificates: Any tax exemption certificates or DTAA papers you provided to HDFC Limited prior to the merger will remain in effect for the remainder of the fiscal year.

If you have previously filed Form 15G/H for FDs you made with HDFC Limited prior to the merger, such forms are still valid. After the merger, if you establish a new FD, you must file an extra Form G/H only for the new FD. Existing HDFC Limited clients may continue to file Form 15G/H for FDs booked during the post-merger period utilizing the present procedure or platform.

Form 15G/H at FD Level: As of right now, you must file Form 15G/H at the FD level rather than the PAN level. This indicates that a single Form G/H may cover all of your current FDs up to the submission date.

Make sure to file Form G/H individually for each of your FDs with HDFC Limited and HDFC Bank if you have accounts with both of these financial institutions. Existing HDFC Limited and HDFC Bank clients may continue reporting Form 15G/H for FDs booked during the post-merger period utilizing their present procedures or platforms.