kyc exception at client creation time and some tds work

src/app/clients/client-stepper/client-general-step/client-general-step.component.ts

@@ -954,6 +954,75 @@ export class ClientGeneralStepComponent implements OnInit, OnDestroy, OnChanges
         Validators.required
       ]
     });
+
+    this.linkMonthlyAnnual('monthlyIncome', 'annualIncome');
+    this.linkMonthlyAnnual('monthlyTurnover', 'annualTurnover');
+    this.linkIncomeToTurnover();
+  }
+
+  /**
+   * Keeps a Monthly/Annual pair of amount fields in sync at a 12x ratio — typing into either
+   * one auto-fills the other. Uses { emitEvent: false } on the write side so the two
+   * subscriptions don't trigger each other back and forth.
+   */
+  /** Rounds to at most 2 decimals without padding whole numbers with a trailing ".00". */
+  private round2(n: number): string {
+    return (Math.round(n * 100) / 100).toString();
+  }
+
+  private linkMonthlyAnnual(monthlyControlName: string, annualControlName: string): void {
+    const monthly = this.createClientForm.get(monthlyControlName);
+    const annual = this.createClientForm.get(annualControlName);
+    if (!monthly || !annual) {
+      return;
+    }
+
+    monthly.valueChanges.subscribe((value) => {
+      if (this.suppressMonthlyAnnualLink) {
+        return;
+      }
+      const num = parseFloat(value);
+      annual.setValue(!isNaN(num) && num >= 0 ? this.round2(num * 12) : '', { emitEvent: false });
+    });
+
+    annual.valueChanges.subscribe((value) => {
+      if (this.suppressMonthlyAnnualLink) {
+        return;
+      }
+      const num = parseFloat(value);
+      monthly.setValue(!isNaN(num) && num >= 0 ? this.round2(num / 12) : '', { emitEvent: false });
+    });
+  }
+
+  /**
+   * Auto-calculates turnover based on income (doubling monthly income for monthly turnover,
+   * and annual income for annual/yearly turnover).
+   */
+  private linkIncomeToTurnover(): void {
+    const monthlyIncome = this.createClientForm.get('monthlyIncome');
+    const monthlyTurnover = this.createClientForm.get('monthlyTurnover');
+    const annualIncome = this.createClientForm.get('annualIncome');
+    const annualTurnover = this.createClientForm.get('annualTurnover');
+
+    if (monthlyIncome && monthlyTurnover) {
+      monthlyIncome.valueChanges.subscribe((value) => {
+        if (this.suppressMonthlyAnnualLink) {
+          return;
+        }
+        const num = parseFloat(value);
+        monthlyTurnover.setValue(!isNaN(num) && num >= 0 ? this.round2(num * 2) : '', { emitEvent: true });
+      });
+    }
+
+    if (annualIncome && annualTurnover) {
+      annualIncome.valueChanges.subscribe((value) => {
+        if (this.suppressMonthlyAnnualLink) {
+          return;
+        }
+        const num = parseFloat(value);
+        annualTurnover.setValue(!isNaN(num) && num >= 0 ? this.round2(num * 2) : '', { emitEvent: true });
+      });
+    }
   }
 
   /**

src/app/clients/client-stepper/client-kyc-step/client-kyc-step.component.html

@@ -723,6 +723,33 @@
         <span>PAN verification requires client to be created first. Complete General tab and click Next to save.</span>
       </div>
     }
+
+    <!-- KYC Exception Flag -->
+    <div class="exception-flag-box" style="margin-top: 20px; padding: 16px; border: 1px solid #f59e0b; background: #fffbeb; border-radius: 8px; clear: both;">
+      <h5 style="margin: 0 0 12px 0; font-size: 14px; font-weight: 600; color: #b45309; display: flex; align-items: center; gap: 8px;">
+        <fa-icon icon="exclamation-triangle"></fa-icon>
+        KYC Exception Flag
+      </h5>
+      <div style="display: flex; align-items: center; gap: 20px; flex-wrap: wrap;">
+        <mat-checkbox formControlName="isException">Mark as KYC Exception</mat-checkbox>
+        
+        @if (kycForm.get('isException')?.value) {
+          <mat-form-field appearance="outline" style="flex: 1; min-width: 280px; margin-bottom: -1.25em;">
+            <mat-label>Exception Reasons</mat-label>
+            <mat-select formControlName="exceptionReason" multiple>
+              @if (!isNonIndividual) {
+                <mat-option value="PAN Card Verification Failed">PAN Card Verification Failed</mat-option>
+                <mat-option value="Aadhaar Verification Failed">Aadhaar Verification Failed</mat-option>
+              } @else {
+                <mat-option value="Enterprise PAN Verification Failed">Enterprise PAN Verification Failed</mat-option>
+                <mat-option value="GSTIN Verification Failed">GSTIN Verification Failed</mat-option>
+                <mat-option value="CIN Verification Failed">CIN Verification Failed</mat-option>
+              }
+            </mat-select>
+          </mat-form-field>
+        }
+      </div>
+    </div>
   </div>
 
   <!-- ═══ SECTION: KYC Document Management ═══ -->
@@ -1410,6 +1437,7 @@
     </div>
   </div>
 
+
   <!-- ═══ SECTION: Photograph & Signature ═══ -->
   <div class="section-block">
     <h4 class="section-title">

src/app/clients/client-stepper/client-kyc-step/client-kyc-step.component.ts

@@ -29,6 +29,7 @@ import { ClientsService } from '../../clients.service';
 import { SettingsService } from 'app/settings/settings.service';
 import { Dates } from 'app/core/utils/dates';
 import { ProofType, normalizeProofType, groupProofsByCategory } from '../../shared/kyc-proof-types';
+import { deriveKycExceptionFields } from '../../kyc-exception.util';
 import { KycUploadHelperService } from '../../shared/kyc-upload-helper.service';
 import { CaptureImageDialogComponent } from '../../clients-view/custom-dialogs/capture-image-dialog/capture-image-dialog.component';
 import { DrawSignatureDialogComponent } from '../../clients-view/custom-dialogs/draw-signature-dialog/draw-signature-dialog.component';
@@ -274,6 +275,14 @@ export class ClientKycStepComponent implements OnInit, OnChanges, OnDestroy {
   riskCalculationReason = '';
   showRiskRulesTable = false;
 
+  /**
+   * Exception state as last read back from the server. Needed to tell "this client never had an
+   * exception" from "this client had one and has now cleared it" — only the latter should be
+   * stamped resolved and surface in the Resolved tab.
+   */
+  persistedIsException = false;
+  persistedExceptionReason: string | null = null;
+
   /** PAN verification */
   panVerifyStatus: 'NONE' | 'VERIFIED' | 'FAILED' = 'NONE';
   panVerifying = false;
@@ -468,6 +477,8 @@ export class ClientKycStepComponent implements OnInit, OnChanges, OnDestroy {
     allowRiskOverride: [false],
     allowAmlOverride: [false],
     remarks: [''],
+    isException: [false],
+    exceptionReason: [[]],
     amlCheckStatus: [
       'CLEAR',
       Validators.required
@@ -610,8 +621,12 @@ export class ClientKycStepComponent implements OnInit, OnChanges, OnDestroy {
       dormantFlag: 'ACTIVE',
       accountStatus: 'ACTIVE',
       form60Type: 'FORM_60',
-      form15Type: '15G'
+      form15Type: '15G',
+      isException: false,
+      exceptionReason: []
     });
+    this.persistedIsException = false;
+    this.persistedExceptionReason = null;
     this.kycId = '';
     this.kycLoaded = false;
     this.kycStatus = 0;
@@ -942,8 +957,12 @@ export class ClientKycStepComponent implements OnInit, OnChanges, OnDestroy {
             form60Date: parseDate(data.form60Date),
             form15Applicable: data.form15Applicable || false,
             form15Type: data.form15Type || '15G',
-            form15FY: data.form15FY || ''
+            form15FY: data.form15FY || '',
+            isException: data.isException || false,
+            exceptionReason: data.exceptionReason ? data.exceptionReason.split(', ') : []
           });
+          this.persistedIsException = data.isException === true;
+          this.persistedExceptionReason = data.exceptionReason || null;
           // Sync chip-picker selection with the prefilled document name
           if (data.kycDocumentName) {
             this.selectedKycDoc = this.kycDocProofs.find((p) => p.name === data.kycDocumentName) || null;
@@ -1843,7 +1862,21 @@ export class ClientKycStepComponent implements OnInit, OnChanges, OnDestroy {
       form15Applicable: v.form15Applicable || false,
       form15Type: v.form15Type || null,
       form15FY: v.form15FY || null,
-      remarks: v.remarks || null
+      remarks: v.remarks || null,
+      // Exception state is DERIVED from verification status, not from a checkbox — an unverified
+      // or blank PAN/Aadhaar is an exception by definition, so the officer cannot forget to flag
+      // it. See deriveKycExceptionFields() for the raise / narrow / close rules.
+      ...deriveKycExceptionFields({
+        panVerified: this.isNonIndividual ? this.entPanVerifyStatus === 'VERIFIED' : this.panVerifyStatus === 'VERIFIED',
+        aadhaarVerified: this.aadhaarVerifyStatus === 'VERIFIED',
+        // Non-individual clients submit a dummy masked Aadhaar, so checking it would saddle every
+        // company with a permanent exception.
+        aadhaarApplicable: !this.isNonIndividual,
+        hadException: this.persistedIsException,
+        previousReason: this.persistedExceptionReason,
+        manualReasons: Array.isArray(v.exceptionReason) ? v.exceptionReason : [],
+        todayFormatted: this.dateUtils.formatDate(new Date(), dateFormat)
+      })
     };
   }
 
@@ -1856,7 +1889,8 @@ export class ClientKycStepComponent implements OnInit, OnChanges, OnDestroy {
       v.enterprisePan ||
       v.cinNumber ||
       v.kycDocumentName ||
-      v.form15Applicable
+      v.form15Applicable ||
+      v.isException
     );
   }
 

src/app/clients/clients-routing.module.ts

@@ -60,6 +60,7 @@ import { ClientCollateralResolver } from './common-resolvers/client-collateral.r
 import { KycTabComponent } from './clients-view/kyc-tab/kyc-tab.component';
 import { CkycTabComponent } from './clients-view/ckyc-tab/ckyc-tab.component';
 import { Form60TabComponent } from './clients-view/form60-tab/form60-tab.component';
+import { Form121TabComponent } from './clients-view/form121-tab/form121-tab.component';
 import { EntityClassificationTabComponent } from './clients-view/entity-classification-tab/entity-classification-tab.component';
 import { familyAllowedGuard, nomineeAllowedGuard } from './utils/family-nominee.guard';
 
@@ -193,6 +194,11 @@ const routes: Routes = [
               component: Form60TabComponent,
               data: { title: 'Form 97', breadcrumb: 'Form 97', routeParamBreadcrumb: false }
             },
+            {
+              path: 'form121',
+              component: Form121TabComponent,
+              data: { title: 'Form 121 / TDS', breadcrumb: 'Form 121 / TDS', routeParamBreadcrumb: false }
+            },
             {
               path: 'documents',
               component: DocumentsTabComponent,

src/app/clients/clients-view/clients-view.component.html

@@ -545,6 +545,15 @@
       >
         <i class="fa fa-file-text cv-tab-icon"></i> {{ 'labels.inputs.Form 60' | translate }}
       </a>
+      <a
+        mat-tab-link
+        [routerLink]="['./form121']"
+        routerLinkActive
+        #form121="routerLinkActive"
+        [active]="form121.isActive"
+      >
+        <i class="fa fa-percent cv-tab-icon"></i> Form 121 / TDS
+      </a>
       <a
         mat-tab-link
         [routerLink]="['./documents']"

src/app/clients/clients-view/form121-tab/form121-tab.component.html

@@ -0,0 +1,428 @@
+<!--
+  Copyright since 2025 Mifos Initiative
+
+  This Source Code Form is subject to the terms of the Mozilla Public
+  License, v. 2.0. If a copy of the MPL was not distributed with this
+  file, You can obtain one at http://mozilla.org/MPL/2.0/.
+-->
+
+<div class="f121">
+  @if (loading) {
+    <div class="f121__loading">
+      <mat-spinner [diameter]="36"></mat-spinner>
+      <span>Reading the customer's deposit ledger…</span>
+    </div>
+  } @else if (loadError) {
+    <div class="f121__note f121__note--warn">
+      <mat-icon>error_outline</mat-icon>
+      <div>Could not load the customer's accounts. Try again, or check the deposit service.</div>
+    </div>
+  } @else {
+    <!-- ── Header ── -->
+    <div class="f121__head">
+      <div>
+        <h3 class="f121__title">Form 121 &amp; TDS on deposit interest</h3>
+        <div class="f121__sub">
+          Tax deducted at source under {{ statute.section }} on fixed and recurring deposit interest.
+        </div>
+      </div>
+
+      <div class="f121__controls">
+        @if (availableFys.length) {
+          <label class="f121__field">
+            <span>Financial year</span>
+            <select [(ngModel)]="fy" (ngModelChange)="recompute()">
+              @for (year of availableFys; track year) {
+                <option [value]="year">FY {{ year }}</option>
+              }
+            </select>
+          </label>
+        }
+        <div class="f121__field">
+          <span>Settlement</span>
+          <div
+            class="f121__mode"
+            [matTooltip]="'Set by the deposit product\'s interest-posting frequency: tax falls due when interest is credited, so the branch cannot defer it. Not a customer preference.'"
+          >
+            <mat-icon>schedule</mat-icon>
+            {{ mode === 'QUARTERLY' ? 'Quarterly' : 'At year end' }}
+          </div>
+        </div>
+      </div>
+    </div>
+
+    @if (!schedule) {
+      <div class="f121__note">
+        <mat-icon>info_outline</mat-icon>
+        <div>
+          @if (!dateOfBirth) {
+            Date of birth is not on record, so the senior-citizen threshold cannot be determined. Add it on the Personal
+            Data tab.
+          } @else {
+            No interest has been credited to this customer's deposits yet.
+          }
+        </div>
+      </div>
+    } @else {
+      <!-- ── KPI strip ── -->
+      <div class="f121__kpis">
+        <div class="f121__kpi">
+          <div class="f121__kpi-n">₹{{ schedule.totalInterest | number: '1.0-0' }}</div>
+          <div class="f121__kpi-l">Interest earned (FY {{ schedule.fy }})</div>
+        </div>
+        <div class="f121__kpi" [class.f121__kpi--warn]="actualTds > 0">
+          <div class="f121__kpi-n">₹{{ actualTds | number: '1.0-0' }}</div>
+          <div class="f121__kpi-l">TDS deducted</div>
+        </div>
+        <div class="f121__kpi">
+          <div class="f121__kpi-n">₹{{ schedule.threshold | number: '1.0-0' }}</div>
+          <div class="f121__kpi-l">Threshold ({{ schedule.senior ? 'senior citizen' : 'general' }})</div>
+        </div>
+        @if (thresholdCrossed) {
+          <div class="f121__kpi f121__kpi--warn">
+            <div class="f121__kpi-n">Crossed</div>
+            <div class="f121__kpi-l">TDS applies this year</div>
+          </div>
+        } @else {
+          <div class="f121__kpi f121__kpi--ok">
+            <div class="f121__kpi-n">₹{{ headroom | number: '1.0-0' }}</div>
+            <div class="f121__kpi-l">More interest before TDS starts</div>
+          </div>
+        }
+        @if (tdsSaved > 0) {
+          <div class="f121__kpi f121__kpi--ok">
+            <div class="f121__kpi-n">₹{{ tdsSaved | number: '1.0-0' }}</div>
+            <div class="f121__kpi-l">Saved by Form 121</div>
+          </div>
+        }
+      </div>
+
+      <!-- ── Alerts ── -->
+      @if (variance !== 0) {
+        <div class="f121__note f121__note--warn">
+          <mat-icon>warning_amber</mat-icon>
+          <div>
+            <strong>Ledger and computed tax differ by ₹{{ variance | number: '1.0-0' }}.</strong>
+            The ledger shows ₹{{ actualTds | number: '1.0-0' }} withheld; {{ statute.section }} on this year's interest
+            comes to ₹{{ schedule.totalTds | number: '1.0-0' }}. Investigate before the quarterly return is filed.
+          </div>
+        </div>
+      }
+
+      @if (declarationNotAppliedToAccounts) {
+        <div class="f121__note f121__note--warn">
+          <mat-icon>warning_amber</mat-icon>
+          <div>
+            A Form 121 declaration is on record for this year, but withholding is still switched on for one or more
+            deposits. Turn it off on those accounts, or tax will keep being deducted.
+          </div>
+        </div>
+      }
+
+      @if (declarationUselessOnJointAccounts) {
+        <div class="f121__note f121__note--warn">
+          <mat-icon>warning_amber</mat-icon>
+          <div>
+            This customer has filed Form 121, but tax on
+            {{ jointHolderAccounts.length }} joint deposit{{ jointHolderAccounts.length === 1 ? '' : 's' }} is deducted
+            against the first-named holder. Their declaration does not cover those — the primary holder must file their
+            own.
+          </div>
+        </div>
+      }
+
+      @if (shouldSuggestDeclaration) {
+        <div class="f121__note f121__note--tip">
+          <mat-icon>lightbulb_outline</mat-icon>
+          <div>
+            ₹{{ schedule.totalTds | number: '1.0-0' }} of tax falls due this year. If the customer's total tax liability
+            for the year is nil, a {{ formLabel }} declaration would stop it being deducted at all — better than
+            reclaiming it later as a refund.
+          </div>
+        </div>
+      }
+
+      @if (!panWellFormed) {
+        <div class="f121__note f121__note--warn">
+          <mat-icon>error_outline</mat-icon>
+          <div>
+            No valid PAN on record, so tax is deducted at the higher section 206AA rate of
+            {{ schedule.rateApplied * 100 | number: '1.0-0' }}%. A Form 121 declaration is void without a valid PAN.
+          </div>
+        </div>
+      }
+
+      @for (note of schedule.notes; track note) {
+        <div class="f121__note">
+          <mat-icon>info_outline</mat-icon>
+          <div>{{ note }}</div>
+        </div>
+      }
+
+      <!-- ── Declaration panel ── -->
+      <div class="f121__card">
+        <div class="f121__card-head">
+          <mat-icon>assignment_turned_in</mat-icon>
+          <span>Declaration</span>
+        </div>
+        <div class="f121__kv">
+          <div class="f121__kv-row">
+            <span>Status</span>
+            <span>
+              @if (declarationOnRecord) {
+                <span class="f121__pill f121__pill--ok">On record — {{ formLabel }}</span>
+              } @else {
+                <span class="f121__pill">Not filed</span>
+              }
+            </span>
+          </div>
+          <div class="f121__kv-row">
+            <span>Form &amp; threshold band</span>
+            <span>{{ formLabel }} · {{ bandLabel }} band · {{ age }} yrs in this FY</span>
+          </div>
+          <div class="f121__kv-row">
+            <span>PAN</span>
+            <span class="f121__mono">
+              {{ pan || '—' }}
+              @if (pan && !panWellFormed) {
+                <span class="f121__pill f121__pill--warn">invalid</span>
+              }
+            </span>
+          </div>
+          @if (declarationOnRecord && declarationFy) {
+            <div class="f121__kv-row">
+              <span>Declared for</span>
+              <span>FY {{ declarationFy }}</span>
+            </div>
+          }
+          @if (declarationOnRecord && !acceptanceDateKnown) {
+            <div class="f121__kv-row f121__kv-row--muted">
+              <span>Acceptance date</span>
+              <span>
+                Not captured — the declaration is treated as covering the whole year. A mid-year acceptance would change
+                the figures below.
+              </span>
+            </div>
+          }
+          @if (eligibility) {
+            @for (reason of eligibility.reasons; track reason) {
+              <div class="f121__kv-row f121__kv-row--warn">
+                <span>Eligibility</span>
+                <span>{{ reason }}</span>
+              </div>
+            }
+            @for (note of eligibility.unassessed; track note) {
+              <div class="f121__kv-row f121__kv-row--muted">
+                <span>Not assessed</span>
+                <span>{{ note }}</span>
+              </div>
+            }
+          }
+        </div>
+      </div>
+
+      <!-- ── Quarter-wise ── -->
+      <div class="f121__card">
+        <div class="f121__card-head">
+          <mat-icon>table_chart</mat-icon>
+          <span>Quarter by quarter</span>
+        </div>
+        <div class="f121__table-wrap">
+          <table class="f121__table">
+            <thead>
+              <tr>
+                <th>Quarter</th>
+                <th class="num">Interest</th>
+                <th class="num">Cumulative</th>
+                <th class="num">Liability to date</th>
+                <th class="num">TDS this quarter</th>
+                <th>Return due</th>
+              </tr>
+            </thead>
+            <tbody>
+              @for (line of schedule.lines; track trackLine($index, line)) {
+                <tr [class.f121__row--warn]="line.thresholdCrossedHere">
+                  <td>
+                    {{ line.label }}
+                    @if (line.thresholdCrossedHere) {
+                      <span class="f121__pill f121__pill--warn">threshold crossed</span>
+                    }
+                    @if (line.declarationActive) {
+                      <span class="f121__pill f121__pill--ok">Form 121 active</span>
+                    }
+                  </td>
+                  <td class="num">₹{{ line.interest | number: '1.0-0' }}</td>
+                  <td class="num">₹{{ line.cumInterest | number: '1.0-0' }}</td>
+                  <td class="num">₹{{ line.cumLiability | number: '1.0-0' }}</td>
+                  <td class="num">
+                    @if (line.tds !== 0) {
+                      <strong>₹{{ line.tds | number: '1.0-0' }}</strong>
+                    } @else {
+                      <span class="muted">—</span>
+                    }
+                  </td>
+                  <td class="muted">{{ line.dueDate }}</td>
+                </tr>
+              }
+              <tr class="f121__row--total">
+                <td><strong>Total</strong></td>
+                <td class="num">
+                  <strong>₹{{ schedule.totalInterest | number: '1.0-0' }}</strong>
+                </td>
+                <td></td>
+                <td></td>
+                <td class="num">
+                  <strong>₹{{ schedule.totalTds | number: '1.0-0' }}</strong>
+                </td>
+                <td></td>
+              </tr>
+            </tbody>
+          </table>
+        </div>
+        @if (schedule.shieldedInterest > 0) {
+          <div class="f121__foot">
+            ₹{{ schedule.shieldedInterest | number: '1.0-0' }} was paid without deduction on the strength of the
+            declaration. This amount is still reportable in the quarterly {{ statute.statement }} return.
+          </div>
+        }
+      </div>
+
+      <!-- ── Section 1: accounts that count ── -->
+      <div class="f121__card">
+        <div class="f121__card-head">
+          <mat-icon>account_balance</mat-icon>
+          <span>Deposits counted towards this customer's TDS</span>
+        </div>
+        @if (liableAccounts.length) {
+          <div class="f121__table-wrap">
+            <table class="f121__table">
+              <thead>
+                <tr>
+                  <th>Account</th>
+                  <th>Type</th>
+                  <th class="num">Interest (FY)</th>
+                  <th class="num">TDS deducted</th>
+                  <th>Withholding</th>
+                  <th>Settles</th>
+                </tr>
+              </thead>
+              <tbody>
+                @for (a of liableAccounts; track trackAccount($index, a)) {
+                  <tr>
+                    <td>
+                      <div class="f121__mono">{{ a.accountNo }}</div>
+                      <div class="muted">{{ a.productName }}</div>
+                    </td>
+                    <td>{{ a.kind }}</td>
+                    <td class="num">₹{{ a.interest | number: '1.0-0' }}</td>
+                    <td class="num">₹{{ a.tdsDeducted | number: '1.0-0' }}</td>
+                    <td>
+                      @if (a.withHoldTax) {
+                        <span class="f121__pill f121__pill--warn">On</span>
+                        @if (a.taxGroup) {
+                          <div class="muted">{{ a.taxGroup }}</div>
+                        }
+                      } @else {
+                        <span class="f121__pill">Off</span>
+                      }
+                    </td>
+                    <td>{{ a.mode === 'QUARTERLY' ? 'Quarterly' : 'Year end' }}</td>
+                  </tr>
+                }
+              </tbody>
+            </table>
+          </div>
+          <div class="f121__foot">
+            Aggregated across every branch — a bank on core banking computes the deduction threshold for the bank as a
+            whole, not branch by branch.
+          </div>
+        } @else {
+          <div class="f121__empty">No fixed or recurring deposits where this customer is the deductee.</div>
+        }
+      </div>
+
+      <!-- ── Section 2: joint holdings ── -->
+      @if (jointHolderAccounts.length) {
+        <div class="f121__card">
+          <div class="f121__card-head">
+            <mat-icon>group</mat-icon>
+            <span>Deposits where this customer is a joint holder</span>
+          </div>
+          <div class="f121__table-wrap">
+            <table class="f121__table">
+              <thead>
+                <tr>
+                  <th>Account</th>
+                  <th>Type</th>
+                  <th class="num">Interest (FY)</th>
+                  <th>Deducted against</th>
+                </tr>
+              </thead>
+              <tbody>
+                @for (a of jointHolderAccounts; track trackAccount($index, a)) {
+                  <tr>
+                    <td>
+                      <div class="f121__mono">{{ a.accountNo }}</div>
+                      <div class="muted">{{ a.productName }}</div>
+                    </td>
+                    <td>{{ a.kind }}</td>
+                    <td class="num">₹{{ a.interest | number: '1.0-0' }}</td>
+                    <td class="muted">
+                      First-named holder
+                      @if (a.deducteeClientId) {
+                        (client {{ a.deducteeClientId }})
+                      }
+                    </td>
+                  </tr>
+                }
+              </tbody>
+            </table>
+          </div>
+          <div class="f121__foot">
+            Tax on a joint deposit is deducted against the first-named holder's PAN, so this interest is
+            <strong>not</strong> counted in the figures above and does not use up this customer's threshold.
+          </div>
+        </div>
+      }
+
+      <!-- ── Section 3: exempt accounts ── -->
+      @if (exemptAccounts.length) {
+        <div class="f121__card">
+          <div class="f121__card-head">
+            <mat-icon>savings</mat-icon>
+            <span>Savings and current accounts</span>
+          </div>
+          <div class="f121__table-wrap">
+            <table class="f121__table">
+              <thead>
+                <tr>
+                  <th>Account</th>
+                  <th>Type</th>
+                  <th class="num">Interest (FY)</th>
+                  <th>TDS</th>
+                </tr>
+              </thead>
+              <tbody>
+                @for (a of exemptAccounts; track trackAccount($index, a)) {
+                  <tr>
+                    <td>
+                      <div class="f121__mono">{{ a.accountNo }}</div>
+                      <div class="muted">{{ a.productName }}</div>
+                    </td>
+                    <td>{{ a.kind }}</td>
+                    <td class="num">₹{{ a.interest | number: '1.0-0' }}</td>
+                    <td><span class="f121__pill">Not applicable</span></td>
+                  </tr>
+                }
+              </tbody>
+            </table>
+          </div>
+          <div class="f121__foot">
+            The charge applies to time deposits. Savings bank interest is outside it and is excluded from the threshold
+            — the customer claims the 80TTA or 80TTB deduction on it in their own return instead.
+          </div>
+        </div>
+      }
+    }
+  }
+</div>

src/app/clients/clients-view/form121-tab/form121-tab.component.scss

@@ -0,0 +1,334 @@
+/**
+ * Copyright since 2025 Mifos Initiative
+ *
+ * This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this
+ * file, You can obtain one at http://mozilla.org/MPL/2.0/.
+ */
+
+.f121 {
+  --f121-line: #e5e7eb;
+  --f121-bg: #f9fafb;
+  --f121-ink: #111827;
+  --f121-muted: #6b7280;
+  --f121-blue: #1d4ed8;
+  --f121-green: #15803d;
+  --f121-amber: #b45309;
+
+  padding: 16px;
+  font-size: 13px;
+  color: var(--f121-ink);
+}
+
+.f121__loading {
+  display: flex;
+  align-items: center;
+  gap: 12px;
+  padding: 40px 16px;
+  color: var(--f121-muted);
+}
+
+/* ── Header ── */
+.f121__head {
+  display: flex;
+  flex-wrap: wrap;
+  gap: 16px;
+  align-items: flex-end;
+  justify-content: space-between;
+  margin-bottom: 16px;
+}
+
+.f121__title {
+  margin: 0;
+  font-size: 16px;
+  font-weight: 700;
+}
+
+.f121__sub {
+  margin-top: 4px;
+  color: var(--f121-muted);
+  font-size: 12px;
+}
+
+.f121__controls {
+  display: flex;
+  gap: 16px;
+  align-items: flex-end;
+}
+
+.f121__field {
+  display: flex;
+  flex-direction: column;
+  gap: 4px;
+
+  > span {
+    font-size: 10.5px;
+    font-weight: 700;
+    text-transform: uppercase;
+    letter-spacing: 0.04em;
+    color: var(--f121-muted);
+  }
+
+  select {
+    padding: 7px 10px;
+    border: 1px solid var(--f121-line);
+    border-radius: 6px;
+    background: #fff;
+    font-size: 13px;
+    color: inherit;
+  }
+}
+
+.f121__mode {
+  display: inline-flex;
+  align-items: center;
+  gap: 6px;
+  padding: 7px 10px;
+  border: 1px solid var(--f121-line);
+  border-radius: 6px;
+  background: var(--f121-bg);
+  font-weight: 600;
+  cursor: help;
+
+  mat-icon {
+    font-size: 16px;
+    width: 16px;
+    height: 16px;
+    color: var(--f121-muted);
+  }
+}
+
+/* ── KPI strip ── */
+.f121__kpis {
+  display: grid;
+  grid-template-columns: repeat(auto-fit, minmax(160px, 1fr));
+  gap: 10px;
+  margin-bottom: 16px;
+}
+
+.f121__kpi {
+  padding: 12px 14px;
+  border: 1px solid var(--f121-line);
+  border-left: 3px solid var(--f121-blue);
+  border-radius: 8px;
+  background: #fff;
+
+  &--ok {
+    border-left-color: var(--f121-green);
+  }
+
+  &--warn {
+    border-left-color: var(--f121-amber);
+  }
+}
+
+.f121__kpi-n {
+  font-size: 19px;
+  font-weight: 800;
+  font-variant-numeric: tabular-nums;
+}
+
+.f121__kpi-l {
+  margin-top: 2px;
+  font-size: 11px;
+  color: var(--f121-muted);
+  line-height: 1.35;
+}
+
+/* ── Notes ── */
+.f121__note {
+  display: flex;
+  gap: 10px;
+  align-items: flex-start;
+  margin-bottom: 12px;
+  padding: 11px 13px;
+  border-radius: 8px;
+  border-left: 3px solid var(--f121-blue);
+  background: color-mix(in srgb, var(--f121-blue) 6%, transparent);
+  line-height: 1.5;
+
+  mat-icon {
+    flex-shrink: 0;
+    font-size: 18px;
+    width: 18px;
+    height: 18px;
+    color: var(--f121-blue);
+  }
+
+  &--warn {
+    border-left-color: var(--f121-amber);
+    background: color-mix(in srgb, var(--f121-amber) 8%, transparent);
+
+    mat-icon {
+      color: var(--f121-amber);
+    }
+  }
+
+  &--tip {
+    border-left-color: var(--f121-green);
+    background: color-mix(in srgb, var(--f121-green) 7%, transparent);
+
+    mat-icon {
+      color: var(--f121-green);
+    }
+  }
+}
+
+/* ── Cards ── */
+.f121__card {
+  margin-bottom: 16px;
+  border: 1px solid var(--f121-line);
+  border-radius: 10px;
+  background: #fff;
+  overflow: hidden;
+}
+
+.f121__card-head {
+  display: flex;
+  align-items: center;
+  gap: 8px;
+  padding: 11px 14px;
+  background: var(--f121-bg);
+  border-bottom: 1px solid var(--f121-line);
+  font-weight: 700;
+  font-size: 12.5px;
+
+  mat-icon {
+    font-size: 18px;
+    width: 18px;
+    height: 18px;
+    color: var(--f121-muted);
+  }
+}
+
+.f121__foot {
+  padding: 10px 14px;
+  border-top: 1px solid var(--f121-line);
+  background: var(--f121-bg);
+  color: var(--f121-muted);
+  font-size: 11.5px;
+  line-height: 1.5;
+}
+
+.f121__empty {
+  padding: 20px 14px;
+  color: var(--f121-muted);
+  text-align: center;
+}
+
+/* ── Key/value list ── */
+.f121__kv-row {
+  display: grid;
+  grid-template-columns: 190px 1fr;
+  gap: 12px;
+  padding: 10px 14px;
+  border-bottom: 1px solid #f3f4f6;
+  line-height: 1.5;
+
+  &:last-child {
+    border-bottom: 0;
+  }
+
+  > span:first-child {
+    color: var(--f121-muted);
+    font-weight: 600;
+  }
+
+  &--muted > span:last-child {
+    color: var(--f121-muted);
+    font-size: 12px;
+  }
+
+  &--warn > span:last-child {
+    color: var(--f121-amber);
+  }
+}
+
+/* ── Tables ── */
+.f121__table-wrap {
+  overflow-x: auto;
+}
+
+.f121__table {
+  width: 100%;
+  border-collapse: collapse;
+  font-size: 12.5px;
+
+  th {
+    text-align: left;
+    padding: 10px 14px;
+    background: #fff;
+    border-bottom: 1px solid var(--f121-line);
+    color: var(--f121-muted);
+    font-weight: 700;
+    font-size: 10.5px;
+    text-transform: uppercase;
+    letter-spacing: 0.04em;
+    white-space: nowrap;
+  }
+
+  td {
+    padding: 10px 14px;
+    border-bottom: 1px solid #f3f4f6;
+    vertical-align: top;
+  }
+
+  tr:last-child td {
+    border-bottom: 0;
+  }
+
+  .num {
+    text-align: right;
+    font-variant-numeric: tabular-nums;
+    white-space: nowrap;
+  }
+
+  .muted {
+    color: var(--f121-muted);
+    font-size: 11.5px;
+  }
+}
+
+.f121__row--warn > td {
+  background: color-mix(in srgb, var(--f121-amber) 7%, transparent);
+}
+
+.f121__row--total > td {
+  background: var(--f121-bg);
+  border-top: 1px solid var(--f121-line);
+}
+
+/* ── Bits ── */
+.f121__pill {
+  display: inline-flex;
+  align-items: center;
+  padding: 2px 9px;
+  border-radius: 999px;
+  border: 1px solid var(--f121-line);
+  background: var(--f121-bg);
+  color: var(--f121-muted);
+  font-size: 10.5px;
+  font-weight: 700;
+  white-space: nowrap;
+
+  & + & {
+    margin-left: 5px;
+  }
+
+  &--ok {
+    border-color: color-mix(in srgb, var(--f121-green) 35%, transparent);
+    background: color-mix(in srgb, var(--f121-green) 10%, transparent);
+    color: var(--f121-green);
+  }
+
+  &--warn {
+    border-color: color-mix(in srgb, var(--f121-amber) 35%, transparent);
+    background: color-mix(in srgb, var(--f121-amber) 12%, transparent);
+    color: var(--f121-amber);
+  }
+}
+
+.f121__mono {
+  font-family: ui-monospace, SFMono-Regular, Menlo, Consolas, monospace;
+  font-weight: 600;
+}

src/app/clients/clients-view/form121-tab/form121-tab.component.ts

@@ -0,0 +1,500 @@
+/**
+ * Copyright since 2025 Mifos Initiative
+ *
+ * This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this
+ * file, You can obtain one at http://mozilla.org/MPL/2.0/.
+ */
+
+/** Angular Imports */
+import { Component, OnDestroy, OnInit, inject } from '@angular/core';
+import { CommonModule } from '@angular/common';
+import { FormsModule } from '@angular/forms';
+import { ActivatedRoute } from '@angular/router';
+import { MatIcon } from '@angular/material/icon';
+import { MatProgressSpinner } from '@angular/material/progress-spinner';
+import { MatTooltip } from '@angular/material/tooltip';
+import { Observable, Subject, forkJoin, of } from 'rxjs';
+import { catchError, switchMap, takeUntil } from 'rxjs/operators';
+
+/** Custom Services */
+import { ClientsService } from '../../clients.service';
+import { SavingsService } from 'app/savings/savings.service';
+import { FixedDepositsService } from 'app/deposits/fixed-deposits/fixed-deposits.service';
+import { RecurringDepositsService } from 'app/deposits/recurring-deposits/recurring-deposits.service';
+import { STANDALONE_SHARED_IMPORTS } from 'app/standalone-shared.module';
+
+/** Domain logic */
+import {
+  Declaration,
+  DeclarationForm,
+  EligibilityResult,
+  FY_TAX_CONFIG,
+  InterestCredit,
+  TdsAccountInput,
+  TdsMode,
+  TdsQuarterLine,
+  TdsSchedule,
+  ageInFy,
+  buildSchedule,
+  checkEligibility,
+  collectTdsCredits,
+  declarationFormFor,
+  formKindFor,
+  fyOf,
+  isTdsApplicable,
+  isWellFormedPan,
+  normaliseFy,
+  tdsDeducteeOf,
+  tdsModeFor
+} from 'app/letter-mgmt/certificates/form-15gh/tds-15gh.compute';
+
+/** One of the customer's interest-bearing accounts, with its FY figures. */
+export interface Form121AccountRow {
+  accountNo: string;
+  productName: string;
+  /** 'Fixed Deposit', 'Recurring Deposit' or 'Savings'. */
+  kind: string;
+  /** Interest credited to this account inside the selected FY. */
+  interest: number;
+  /** Tax Fineract has actually withheld on this account inside the FY. */
+  tdsDeducted: number;
+  /** Whether Fineract is currently withholding tax on this account. */
+  withHoldTax: boolean;
+  taxGroup: string | null;
+  /** When tax on this account settles — from the product, not a preference. */
+  mode: TdsMode;
+  /** Interest here attracts TDS at all (a time deposit, not a savings account). */
+  tdsApplicable: boolean;
+  /** This customer is the deductee — false when they are a joint holder only. */
+  isDeductee: boolean;
+  /** Who the tax is deducted against, when it is not this customer. */
+  deducteeClientId: number | null;
+}
+
+/** Fineract hands dates back as [yyyy, m, d]; normalise to ISO. */
+function toIso(value: unknown): string | null {
+  if (Array.isArray(value) && value.length >= 3) {
+    const [
+      y,
+      m,
+      d
+    ] = value as number[];
+    return `${y}-${`${m}`.padStart(2, '0')}-${`${d}`.padStart(2, '0')}`;
+  }
+  if (typeof value === 'string' && value.trim()) {
+    const parsed = new Date(value);
+    if (!isNaN(parsed.getTime())) {
+      return parsed.toISOString().slice(0, 10);
+    }
+  }
+  return null;
+}
+
+@Component({
+  selector: 'mifosx-form121-tab',
+  templateUrl: './form121-tab.component.html',
+  styleUrls: ['./form121-tab.component.scss'],
+  standalone: true,
+  imports: [
+    ...STANDALONE_SHARED_IMPORTS,
+    CommonModule,
+    FormsModule,
+    MatIcon,
+    MatProgressSpinner,
+    MatTooltip
+  ]
+})
+export class Form121TabComponent implements OnInit, OnDestroy {
+  private route = inject(ActivatedRoute);
+  private clientsService = inject(ClientsService);
+  private savingsService = inject(SavingsService);
+  private fixedDepositsService = inject(FixedDepositsService);
+  private recurringDepositsService = inject(RecurringDepositsService);
+
+  private destroy$ = new Subject<void>();
+
+  clientId = '';
+  loading = true;
+  loadError = false;
+
+  // ── Customer ──
+  clientName = '';
+  dateOfBirth = '';
+  pan = '';
+  panWellFormed = false;
+
+  // ── Declaration on record ──
+  declarationOnRecord = false;
+  /**
+   * The form actually in force for the selected year. From FY 2026-27 a single
+   * Form 121 replaced the 15G/15H split, so this is derived from the year rather
+   * than from the payee's age.
+   */
+  declarationForm: DeclarationForm = '121';
+  /** Kind recorded at KYC, meaningful only for a pre-2026 year. */
+  declarationKind: '15G' | '15H' = '15G';
+  declarationFy = '';
+  /**
+   * The KYC step records only the year, not the date the branch accepted the
+   * declaration, so it has to be treated as covering the whole year. Surfaced on
+   * screen rather than hidden — a mid-year acceptance would change the figures.
+   */
+  acceptanceDateKnown = false;
+
+  eligibility: EligibilityResult | null = null;
+
+  // ── Selection ──
+  availableFys: string[] = [];
+  fy = '';
+
+  // ── Computed ──
+  accounts: Form121AccountRow[] = [];
+  schedule: TdsSchedule | null = null;
+  actualTds = 0;
+  tdsSaved = 0;
+
+  /** Raw account inputs, kept so the year selector can recompute cheaply. */
+  private accountInputs: (TdsAccountInput & { meta: Form121AccountRow })[] = [];
+  /** Withheld-tax postings by FY, from the ledger. */
+  private actualTdsByFy = new Map<string, number>();
+
+  ngOnInit(): void {
+    this.route.parent.params.pipe(takeUntil(this.destroy$)).subscribe((params: any) => {
+      this.clientId = params['clientId'];
+      this.load();
+    });
+  }
+
+  ngOnDestroy(): void {
+    this.destroy$.next();
+    this.destroy$.complete();
+  }
+
+  // ────────────────────────────── Loading ──────────────────────────────
+
+  private load(): void {
+    this.loading = true;
+    this.loadError = false;
+
+    forkJoin({
+      client: this.clientsService.getClientData(this.clientId, true).pipe(catchError(() => of(null))),
+      kyc: this.clientsService.getClientKyc(this.clientId, true).pipe(catchError(() => of(null))),
+      accounts: this.clientsService.getClientAccountData(this.clientId).pipe(catchError(() => of(null)))
+    })
+      .pipe(
+        takeUntil(this.destroy$),
+        switchMap(({ client, kyc, accounts }) => {
+          this.applyClient(client);
+          this.applyKyc(kyc);
+          const deposits = this.depositAccountsOf(accounts);
+          return deposits.length ? forkJoin(deposits.map((a) => this.fetchAccount(a))) : of([] as any[]);
+        }),
+        catchError(() => {
+          this.loadError = true;
+          return of([] as any[]);
+        })
+      )
+      .subscribe((details: any[]) => {
+        this.loading = false;
+        this.ingest(details.filter(Boolean));
+        this.recompute();
+      });
+  }
+
+  private applyClient(client: any): void {
+    this.clientName = client?.displayName ?? '';
+    this.dateOfBirth = toIso(client?.dateOfBirth) ?? '';
+  }
+
+  private applyKyc(kyc: any): void {
+    this.pan = (kyc?.panNumber ?? '').toUpperCase();
+    this.panWellFormed = isWellFormedPan(this.pan);
+    this.declarationOnRecord = !!kyc?.form15Applicable;
+    this.declarationKind = kyc?.form15Type === '15H' ? '15H' : '15G';
+    this.declarationForm = this.fy ? declarationFormFor(this.fy, this.dateOfBirth) : '121';
+    this.declarationFy = kyc?.form15FY ?? '';
+    this.acceptanceDateKnown = false;
+  }
+
+  /** Savings, FD and RD accounts — everything that can credit interest. */
+  private depositAccountsOf(accounts: any): any[] {
+    return (accounts?.savingsAccounts ?? []).filter(
+      (a: any) => a.status?.active || a.status?.matured || a.status?.closed
+    );
+  }
+
+  private fetchAccount(a: any): Observable<any> {
+    const id = `${a.id}`;
+    const code = a.depositType?.code ?? '';
+    let call: Observable<any>;
+    if (code.includes('fixedDeposit')) {
+      call = this.fixedDepositsService.getFixedDepositsAccountData(id);
+    } else if (code.includes('recurringDeposit')) {
+      call = this.recurringDepositsService.getRecurringDepositsAccountData(id);
+    } else {
+      call = this.savingsService.getSavingsAccountData(id);
+    }
+    // One unreadable account must not blank the whole tab.
+    return call.pipe(catchError(() => of(null)));
+  }
+
+  /**
+   * Turns each account payload into an engine input.
+   *
+   * Joint and minor attributes are read defensively: they are captured on the
+   * account stepper but may not surface on every read endpoint, and an absent
+   * field must default to a single-name account rather than throw.
+   */
+  private ingest(details: any[]): void {
+    this.accountInputs = [];
+    this.actualTdsByFy = new Map<string, number>();
+    const fys = new Set<string>();
+    const clientIdNum = Number(this.clientId);
+
+    for (const d of details) {
+      const code: string = d.depositType?.code ?? '';
+      const extra = d.extraAttributes ?? d.externalAttributes ?? d;
+
+      const ref = {
+        id: d.id,
+        accountNo: d.accountNo ?? `${d.id}`,
+        depositTypeCode: code,
+        accountStatus: extra.accountStatus ?? d.accountStatus ?? 'SINGLE',
+        clientId: d.clientId ?? clientIdNum,
+        primaryClientId: extra.primaryClientId ?? d.primaryClientId ?? null,
+        guardianClientId: extra.guardianClientId ?? d.guardianClientId ?? null,
+        jointHolders: extra.jointHolders ?? d.jointHolders ?? [],
+        interestPostingPeriodType: d.interestPostingPeriodType ?? null
+      };
+
+      const credits: InterestCredit[] = [];
+      let tdsDeducted = 0;
+
+      for (const t of d.transactions ?? []) {
+        if (t.reversed || t.isReversal) {
+          continue;
+        }
+        const iso = toIso(t.date);
+        if (!iso) {
+          continue;
+        }
+        fys.add(fyOf(iso));
+
+        if (t.transactionType?.interestPosting) {
+          credits.push({ date: iso, amount: t.amount ?? 0, accountNo: ref.accountNo });
+        } else if (t.transactionType?.withholdTax) {
+          const amount = t.amount ?? 0;
+          tdsDeducted += amount;
+          const txnFy = fyOf(iso);
+          this.actualTdsByFy.set(txnFy, (this.actualTdsByFy.get(txnFy) ?? 0) + amount);
+        }
+      }
+
+      const deductee = tdsDeducteeOf(ref);
+      const meta: Form121AccountRow = {
+        accountNo: ref.accountNo,
+        productName: d.savingsProductName ?? d.depositProductName ?? d.productName ?? '—',
+        kind: code.includes('fixedDeposit')
+          ? 'Fixed Deposit'
+          : code.includes('recurringDeposit')
+            ? 'Recurring Deposit'
+            : 'Savings',
+        interest: 0,
+        tdsDeducted,
+        withHoldTax: !!d.withHoldTax,
+        taxGroup: d.taxGroup?.name ?? null,
+        mode: tdsModeFor(ref),
+        tdsApplicable: isTdsApplicable(ref),
+        isDeductee: deductee === clientIdNum,
+        deducteeClientId: deductee
+      };
+
+      this.accountInputs.push({ ...ref, credits, meta });
+    }
+
+    this.availableFys = [...fys].sort().reverse();
+    if (!this.availableFys.includes(this.fy)) {
+      this.fy = this.availableFys[0] ?? (this.declarationFy ? normaliseFy(this.declarationFy) : '');
+    }
+  }
+
+  // ───────────────────────────── Computation ─────────────────────────────
+
+  /** Re-runs the engine for the selected year. */
+  recompute(): void {
+    this.schedule = null;
+    this.eligibility = null;
+    this.tdsSaved = 0;
+    this.accounts = this.accountInputs.map((a) => a.meta);
+
+    if (!this.fy) {
+      return;
+    }
+
+    const year = normaliseFy(this.fy);
+
+    // Per-account interest for the selected year, for the three lists.
+    for (const a of this.accountInputs) {
+      a.meta.interest = a.credits.filter((c) => fyOf(c.date) === year).reduce((s, c) => s + c.amount, 0);
+    }
+    this.actualTds = this.actualTdsByFy.get(year) ?? 0;
+
+    if (!this.dateOfBirth) {
+      return;
+    }
+
+    // The one place rules 8 to 12 are applied: savings interest dropped, joint
+    // deposits attributed to the primary holder, every branch aggregated.
+    const credits = collectTdsCredits(Number(this.clientId), this.accountInputs, year);
+    const ctx = { fy: year, dateOfBirth: this.dateOfBirth, pan: this.pan, resident: true };
+    const declaration = this.declarationForSelectedFy();
+
+    this.schedule = buildSchedule(this.overallMode, credits, { ...ctx, declaration });
+
+    if (declaration) {
+      const without = buildSchedule(this.overallMode, credits, { ...ctx, declaration: null });
+      this.tdsSaved = Math.max(0, without.totalTds - this.schedule.totalTds);
+    }
+
+    // The branch cannot compute income earned outside the bank, so the income
+    // limb is reported as unassessed rather than silently passed.
+    this.eligibility = checkEligibility(ctx, {
+      estimatedInterest: this.schedule.totalInterest,
+      estimatedIncome: 0,
+      incomeOnRecord: false
+    });
+  }
+
+  /**
+   * When tax settles for this customer overall.
+   *
+   * Timing is per account, but the customer needs one view. A quarterly account
+   * anywhere in the book means a deduction falls due at the first quarter end, so
+   * that is the honest headline; the per-account list carries the detail.
+   */
+  private get overallMode(): TdsMode {
+    const applicable = this.accountInputs.filter((a) => a.meta.tdsApplicable && a.meta.isDeductee);
+    return applicable.some((a) => a.meta.mode === 'QUARTERLY') ? 'QUARTERLY' : 'ANNUAL';
+  }
+
+  /** The declaration, but only when it was filed for the year being shown. */
+  private declarationForSelectedFy(): Declaration | null {
+    if (!this.declarationOnRecord || !this.fy) {
+      return null;
+    }
+    const year = normaliseFy(this.fy);
+    if (this.declarationFy && normaliseFy(this.declarationFy) !== year) {
+      return null;
+    }
+    return {
+      kind: this.declarationKind,
+      // No acceptance date on record — treated as covering the whole year.
+      acceptedOn: `${year.slice(0, 4)}-04-01`,
+      fy: year
+    };
+  }
+
+  // ───────────────────────── Template helpers ─────────────────────────
+
+  get mode(): TdsMode {
+    return this.schedule?.mode ?? 'QUARTERLY';
+  }
+
+  get age(): number {
+    return this.dateOfBirth && this.fy ? ageInFy(this.dateOfBirth, this.fy) : 0;
+  }
+
+  get formKind(): string {
+    return this.dateOfBirth && this.fy ? formKindFor(this.dateOfBirth, this.fy) : '—';
+  }
+
+  /** The form the payee would file for the selected year. */
+  get formLabel(): string {
+    if (!this.fy) {
+      return '—';
+    }
+    const form = declarationFormFor(this.fy, this.dateOfBirth);
+    return form === '121' ? 'Form 121' : `Form ${form}`;
+  }
+
+  /** Which deduction trigger applies, now that the forms no longer split by age. */
+  get bandLabel(): string {
+    return this.schedule?.senior ? 'Senior citizen' : 'General';
+  }
+
+  /**
+   * Provision and return references for the selected year. Both changed on
+   * 01 April 2026, so the template reads them rather than hard-coding them.
+   */
+  get statute(): { section: string; statement: string; rule: string; frequency: string } {
+    const cfg = this.fy ? FY_TAX_CONFIG[normaliseFy(this.fy)] : undefined;
+    return {
+      section: cfg?.interestTdsSection ?? '—',
+      statement: cfg?.tdsStatementForm ?? '—',
+      rule: cfg?.declarationRule ?? '—',
+      frequency: cfg?.declarationStatementFrequency === 'MONTHLY' ? 'monthly' : 'quarterly'
+    };
+  }
+
+  /** Accounts whose interest counts towards this customer's deduction aggregate. */
+  get liableAccounts(): Form121AccountRow[] {
+    return this.accounts.filter((a) => a.tdsApplicable && a.isDeductee);
+  }
+
+  /** Deposits where this customer is a joint holder but not the deductee. */
+  get jointHolderAccounts(): Form121AccountRow[] {
+    return this.accounts.filter((a) => a.tdsApplicable && !a.isDeductee);
+  }
+
+  /** Savings and current accounts — interest outside the charge on time deposits. */
+  get exemptAccounts(): Form121AccountRow[] {
+    return this.accounts.filter((a) => !a.tdsApplicable);
+  }
+
+  /** Engine figure less what the ledger shows was actually withheld. */
+  get variance(): number {
+    return (this.schedule?.totalTds ?? 0) - this.actualTds;
+  }
+
+  /** How much more interest before TDS starts. */
+  get headroom(): number {
+    if (!this.schedule) {
+      return 0;
+    }
+    return Math.max(0, this.schedule.threshold - this.schedule.totalInterest);
+  }
+
+  get thresholdCrossed(): boolean {
+    return !!this.schedule && this.schedule.totalInterest > this.schedule.threshold;
+  }
+
+  /**
+   * A declaration is on record but deposit accounts are still set to withhold —
+   * the branch has not switched them off.
+   */
+  get declarationNotAppliedToAccounts(): boolean {
+    return !!this.declarationForSelectedFy() && this.liableAccounts.some((a) => a.withHoldTax);
+  }
+
+  /**
+   * The customer filed a declaration but holds joint deposits where someone else
+   * is the deductee — their form does nothing for those.
+   */
+  get declarationUselessOnJointAccounts(): boolean {
+    return !!this.declarationForSelectedFy() && this.jointHolderAccounts.length > 0;
+  }
+
+  /** Worth prompting the branch to collect a declaration. */
+  get shouldSuggestDeclaration(): boolean {
+    return !this.declarationForSelectedFy() && (this.schedule?.totalTds ?? 0) > 0;
+  }
+
+  trackLine(_: number, line: TdsQuarterLine): number {
+    return line.quarter;
+  }
+
+  trackAccount(_: number, account: Form121AccountRow): string {
+    return account.accountNo;
+  }
+}

src/app/clients/clients-view/kyc-tab/kyc-tab.component.html

@@ -42,6 +42,19 @@
 
     <!-- KYC Summary (read-only when not in edit mode) -->
     @if (!isEditMode && kycData) {
+      @if (kycData.isException && !kycData.exceptionResolved) {
+        <div class="kyc-exception-banner" style="background: #fef3c7; border: 1px solid #f59e0b; border-radius: 8px; padding: 16px; margin-bottom: 20px; display: flex; align-items: flex-start; gap: 12px;">
+          <mat-icon style="color: #d97706; margin-top: 2px;">warning</mat-icon>
+          <div>
+            <strong style="color: #92400e; font-size: 14px;">KYC Exception Active</strong>
+            <p style="color: #b45309; font-size: 13px; margin: 4px 0 0 0;">
+              Account is open under a temporary KYC Exception. Reason: <strong>{{ kycData.exceptionReason || 'Other' }}</strong>. 
+              Please contact the customer and complete verification as soon as possible.
+            </p>
+          </div>
+        </div>
+      }
+
       <!-- Verification Table -->
       <div class="kv-table">
         <div class="kv-table__header">
@@ -740,11 +753,33 @@
                 </mat-select>
               </mat-form-field>
 
+              <!-- KYC Exception Flag -->
+              <div class="full-span exception-controls-row" style="display: flex; align-items: center; gap: 20px; margin-bottom: 12px; flex-wrap: wrap;">
+                <mat-checkbox formControlName="isException" style="margin-top: 8px;">Mark as KYC Exception</mat-checkbox>
+                
+                @if (kycForm.get('isException')?.value) {
+                  <mat-form-field appearance="outline" style="flex: 1; min-width: 250px;">
+                    <mat-label>Exception Reasons</mat-label>
+                    <mat-select formControlName="exceptionReason" multiple>
+                      @if (!isNonIndividual) {
+                        <mat-option value="PAN Card Verification Failed">PAN Card Verification Failed</mat-option>
+                        <mat-option value="Aadhaar Verification Failed">Aadhaar Verification Failed</mat-option>
+                      } @else {
+                        <mat-option value="Enterprise PAN Verification Failed">Enterprise PAN Verification Failed</mat-option>
+                        <mat-option value="GSTIN Verification Failed">GSTIN Verification Failed</mat-option>
+                        <mat-option value="CIN Verification Failed">CIN Verification Failed</mat-option>
+                      }
+                    </mat-select>
+                  </mat-form-field>
+                }
+              </div>
+
               <!-- Remarks -->
               <mat-form-field appearance="outline" class="full-span">
                 <mat-label>{{ 'labels.inputs.Remarks' | translate }}</mat-label>
                 <textarea matInput formControlName="remarks" rows="3"></textarea>
               </mat-form-field>
+
             </div>
 
             @if (errorMessage) {

src/app/clients/clients-view/kyc-tab/kyc-tab.component.ts

@@ -14,6 +14,7 @@ import { catchError, of, Subject, takeUntil } from 'rxjs';
 
 /** Custom Services */
 import { ClientsService } from '../../clients.service';
+import { deriveKycExceptionFields } from '../../kyc-exception.util';
 import { Dates } from 'app/core/utils/dates';
 import { jsPDF } from 'jspdf';
 import { MatIcon } from '@angular/material/icon';
@@ -121,7 +122,9 @@ export class KycTabComponent implements OnInit, OnDestroy {
       '',
       [Validators.pattern(/^[0-9]{2}[A-Z]{5}[0-9]{4}[A-Z]{1}[1-9A-Z]{1}Z[0-9A-Z]{1}$/)]
     ],
-    remarks: ['']
+    remarks: [''],
+    isException: [false],
+    exceptionReason: [[]]
   });
 
   ngOnInit(): void {
@@ -157,7 +160,9 @@ export class KycTabComponent implements OnInit, OnDestroy {
             // the full 12-digit number to re-verify, so don't pre-fill.
             aadhaarNumber: '',
             gstinNumber: data.gstinNumber || '',
-            remarks: data.remarks || ''
+            remarks: data.remarks || '',
+            isException: data.isException || false,
+            exceptionReason: data.exceptionReason ? data.exceptionReason.split(', ') : []
           });
         }
       });
@@ -195,6 +200,28 @@ export class KycTabComponent implements OnInit, OnDestroy {
     }
   }
 
+  /**
+   * Exception columns derived from verification status — see `deriveKycExceptionFields()`.
+   *
+   * A field counts as verified if it was verified in this session OR is already verified on the
+   * stored record; either way the customer has cleared that check. Verifying one of two
+   * outstanding items narrows the exception to the remaining one rather than closing it.
+   */
+  private buildExceptionFields() {
+    const panVerified = this.verificationStatus.pan === 'VERIFIED' || this.kycData?.panVerified === true;
+    const aadhaarVerified = this.verificationStatus.aadhaar === 'VERIFIED' || this.kycData?.aadhaarVerified === true;
+
+    return deriveKycExceptionFields({
+      panVerified,
+      aadhaarVerified,
+      aadhaarApplicable: !this.isNonIndividual,
+      hadException: this.kycData?.isException === true,
+      previousReason: this.kycData?.exceptionReason || null,
+      manualReasons: Array.isArray(this.kycForm.value.exceptionReason) ? this.kycForm.value.exceptionReason : [],
+      todayFormatted: this.dateUtils.formatDate(new Date(), 'dd MMMM yyyy')
+    });
+  }
+
   saveKyc(): void {
     if (this.kycForm.invalid) {
       return;
@@ -210,7 +237,10 @@ export class KycTabComponent implements OnInit, OnDestroy {
       panNumber: this.kycForm.value.panNumber || null,
       aadhaarNumberMasked: aadhaarMasked,
       gstinNumber: this.kycForm.value.gstinNumber || null,
-      remarks: this.kycForm.value.remarks || null
+      remarks: this.kycForm.value.remarks || null,
+      // dateFormat is required so the backend can parse exceptionResolvedOn when an exception closes.
+      dateFormat: 'dd MMMM yyyy',
+      ...this.buildExceptionFields()
     };
 
     if (!this.kycId) {
@@ -244,6 +274,37 @@ export class KycTabComponent implements OnInit, OnDestroy {
     });
   }
 
+  private saveKycBeforeVerify(callback: () => void, field: 'pan' | 'aadhaar' | 'gstin'): void {
+    if (this.isEditMode) {
+      const aadhaarRaw = this.kycForm.value.aadhaarNumber || '';
+      const aadhaarMasked = aadhaarRaw.length === 12 ? 'XXXXXXXX' + aadhaarRaw.slice(-4) : aadhaarRaw || null;
+      const payload: any = {
+        locale: 'en',
+        panNumber: this.kycForm.value.panNumber || null,
+        aadhaarNumberMasked: aadhaarMasked,
+        gstinNumber: this.kycForm.value.gstinNumber || null,
+        remarks: this.kycForm.value.remarks || null,
+        riskCategory: this.kycForm.value.riskCategory || 1,
+        dateFormat: 'dd MMMM yyyy',
+        ...this.buildExceptionFields()
+      };
+
+      this.clientsService.updateClientKyc(this.clientId, this.kycId, payload).subscribe({
+        next: () => {
+          this.loadKycData();
+          callback();
+        },
+        error: (err: any) => {
+          this.verifying[field] = false;
+          this.verificationStatus[field] = 'FAILED';
+          this.verificationError[field] = err?.error?.defaultUserMessage || `Failed to update ${field.toUpperCase()} number before verification.`;
+        }
+      });
+    } else {
+      callback();
+    }
+  }
+
   verifyPAN(): void {
     if (!this.kycId) {
       this.verificationError.pan = 'KYC record not found. Save KYC details first.';
@@ -254,31 +315,33 @@ export class KycTabComponent implements OnInit, OnDestroy {
     this.verificationError.pan = null;
     this.verificationDetails.pan = null;
 
-    this.clientsService
-      .verifyPAN(this.clientId, this.kycId)
-      .pipe(takeUntil(this.destroy$))
-      .subscribe({
-        next: (response: any) => {
-          this.verifying.pan = false;
-          if (response?.changes?.panVerified) {
-            this.verificationStatus.pan = 'VERIFIED';
-            this.verificationDetails.pan = response.changes;
-            this.loadKycData();
-          } else {
+    this.saveKycBeforeVerify(() => {
+      this.clientsService
+        .verifyPAN(this.clientId, this.kycId)
+        .pipe(takeUntil(this.destroy$))
+        .subscribe({
+          next: (response: any) => {
+            this.verifying.pan = false;
+            if (response?.changes?.panVerified) {
+              this.verificationStatus.pan = 'VERIFIED';
+              this.verificationDetails.pan = response.changes;
+              this.loadKycData();
+            } else {
+              this.verificationStatus.pan = 'FAILED';
+              this.verificationError.pan = 'PAN verification failed.';
+            }
+          },
+          error: (err: any) => {
+            this.verifying.pan = false;
             this.verificationStatus.pan = 'FAILED';
-            this.verificationError.pan = 'PAN verification failed.';
+            this.verificationError.pan =
+              err?.error?.developerMessage ||
+              err?.error?.defaultUserMessage ||
+              err?.message ||
+              'PAN verification failed. Please try again.';
           }
-        },
-        error: (err: any) => {
-          this.verifying.pan = false;
-          this.verificationStatus.pan = 'FAILED';
-          this.verificationError.pan =
-            err?.error?.developerMessage ||
-            err?.error?.defaultUserMessage ||
-            err?.message ||
-            'PAN verification failed. Please try again.';
-        }
-      });
+        });
+    }, 'pan');
   }
 
   /** Show Aadhaar input in summary view for re-verification */
@@ -305,31 +368,33 @@ export class KycTabComponent implements OnInit, OnDestroy {
     this.aadhaarOtpSent = false;
     this.aadhaarOtp = '';
 
-    this.clientsService
-      .sendAadhaarOtp(this.clientId, this.kycId, aadhaar)
-      .pipe(takeUntil(this.destroy$))
-      .subscribe({
-        next: (response: any) => {
-          this.verifying.aadhaar = false;
-          const refNumber =
-            response?.changes?.aadhaarRefNumber ||
-            response?.aadhaarRefNumber ||
-            response?.changes?.referenceNumber ||
-            response?.resourceId;
-          this.aadhaarOtpSent = true;
-          this.aadhaarOtpReferenceId = refNumber || null;
-          this.verificationStatus.aadhaar = 'PENDING';
-        },
-        error: (err: any) => {
-          this.verifying.aadhaar = false;
-          this.verificationStatus.aadhaar = 'FAILED';
-          this.verificationError.aadhaar =
-            err?.error?.developerMessage ||
-            err?.error?.defaultUserMessage ||
-            err?.message ||
-            'Failed to send OTP. Please try again.';
-        }
-      });
+    this.saveKycBeforeVerify(() => {
+      this.clientsService
+        .sendAadhaarOtp(this.clientId, this.kycId, aadhaar)
+        .pipe(takeUntil(this.destroy$))
+        .subscribe({
+          next: (response: any) => {
+            this.verifying.aadhaar = false;
+            const refNumber =
+              response?.changes?.aadhaarRefNumber ||
+              response?.aadhaarRefNumber ||
+              response?.changes?.referenceNumber ||
+              response?.resourceId;
+            this.aadhaarOtpSent = true;
+            this.aadhaarOtpReferenceId = refNumber || null;
+            this.verificationStatus.aadhaar = 'PENDING';
+          },
+          error: (err: any) => {
+            this.verifying.aadhaar = false;
+            this.verificationStatus.aadhaar = 'FAILED';
+            this.verificationError.aadhaar =
+              err?.error?.developerMessage ||
+              err?.error?.defaultUserMessage ||
+              err?.message ||
+              'Failed to send OTP. Please try again.';
+          }
+        });
+    }, 'aadhaar');
   }
 
   /** Step 2: Verify OTP entered by user */
@@ -380,31 +445,33 @@ export class KycTabComponent implements OnInit, OnDestroy {
     this.verificationError.gstin = null;
     this.verificationDetails.gstin = null;
 
-    this.clientsService
-      .verifyGSTIN(this.clientId, this.kycId)
-      .pipe(takeUntil(this.destroy$))
-      .subscribe({
-        next: (response: any) => {
-          this.verifying.gstin = false;
-          if (response?.changes?.gstinVerified) {
-            this.verificationStatus.gstin = 'VERIFIED';
-            this.verificationDetails.gstin = response.changes;
-            this.loadKycData();
-          } else {
+    this.saveKycBeforeVerify(() => {
+      this.clientsService
+        .verifyGSTIN(this.clientId, this.kycId)
+        .pipe(takeUntil(this.destroy$))
+        .subscribe({
+          next: (response: any) => {
+            this.verifying.gstin = false;
+            if (response?.changes?.gstinVerified) {
+              this.verificationStatus.gstin = 'VERIFIED';
+              this.verificationDetails.gstin = response.changes;
+              this.loadKycData();
+            } else {
+              this.verificationStatus.gstin = 'FAILED';
+              this.verificationError.gstin = 'GSTIN verification failed.';
+            }
+          },
+          error: (err: any) => {
+            this.verifying.gstin = false;
             this.verificationStatus.gstin = 'FAILED';
-            this.verificationError.gstin = 'GSTIN verification failed.';
+            this.verificationError.gstin =
+              err?.error?.developerMessage ||
+              err?.error?.defaultUserMessage ||
+              err?.message ||
+              'GSTIN verification failed. Please try again.';
           }
-        },
-        error: (err: any) => {
-          this.verifying.gstin = false;
-          this.verificationStatus.gstin = 'FAILED';
-          this.verificationError.gstin =
-            err?.error?.developerMessage ||
-            err?.error?.defaultUserMessage ||
-            err?.message ||
-            'GSTIN verification failed. Please try again.';
-        }
-      });
+        });
+    }, 'gstin');
   }
 
   formatDate(date: any): string {

src/app/clients/clients.service.ts

@@ -958,4 +958,26 @@ export class ClientsService {
   dispatchWelcomeKit(clientId: string | number, data: any): Observable<any> {
     return this.http.post(`/clients/${clientId}/welcomekit`, data);
   }
+
+  getKycExceptions(resolved = false): Observable<any[]> {
+    return this.http.get<any[]>(`/kyc/exceptions?resolved=${resolved}`);
+  }
+
+  /**
+   * Records a KYC-exception outreach attempt against a customer, and — for the SMS, EMAIL and
+   * WHATSAPP channels — actually transmits the notice.
+   *
+   * The destination is resolved server-side from the client record; it is deliberately not part of
+   * this payload, so a tampered request cannot redirect a KYC notice elsewhere.
+   *
+   * Resolves with HTTP 200 even when delivery fails — inspect `deliveryStatus` / `delivered` on the
+   * response rather than assuming success, since the log row is written either way.
+   */
+  saveKycContactLog(clientId: string | number, data: { channel: string; notes: string; officerName?: string }): Observable<any> {
+    return this.http.post(`/kyc/exceptions/${clientId}/contact-log`, data);
+  }
+
+  getKycContactLog(clientId: string | number): Observable<any[]> {
+    return this.http.get<any[]>(`/kyc/exceptions/${clientId}/contact-log`);
+  }
 }

src/app/clients/create-client/create-client.component.ts

@@ -430,8 +430,20 @@ export class CreateClientComponent {
       }
       this.validationError = '';
       // Save KYC
-      if (this.clientKycStep?.hasKycData && !this.clientKycStep.kycId) {
-        this.clientsService.saveClientKyc(clientId, this.clientKycStep.kycData).subscribe({ error: () => {} });
+      if (this.clientKycStep?.hasKycData) {
+        if (!this.clientKycStep.kycId) {
+          this.clientsService.saveClientKyc(clientId, this.clientKycStep.kycData).subscribe({
+            next: (res: any) => {
+              if (this.clientKycStep) {
+                this.clientKycStep.kycId = res?.resourceId?.toString() || res?.entityId?.toString() || '';
+              }
+            },
+            error: () => {}
+          });
+        } else {
+          const { kycType, ...updatePayload } = this.clientKycStep.kycData;
+          this.clientsService.updateClientKyc(clientId, this.clientKycStep.kycId, updatePayload).subscribe({ error: () => {} });
+        }
       }
       // Upload photo & signature
       if (this.clientKycStep?.photographFile) {
@@ -696,12 +708,20 @@ export class CreateClientComponent {
     // Persist the KYC document picker selection + uploaded files as a client identifier
     this.saveKycDocProof(clientId);
 
-    // Save KYC only if it wasn't already created during the KYC step
-    if (this.clientKycStep?.hasKycData && !this.clientKycStep.kycId) {
-      this.clientsService.saveClientKyc(clientId, this.clientKycStep.kycData).subscribe({
-        next: () => navigateToClient(),
-        error: () => navigateToClient()
-      });
+    // Save/update KYC to ensure latest exception fields are persisted
+    if (this.clientKycStep?.hasKycData) {
+      if (!this.clientKycStep.kycId) {
+        this.clientsService.saveClientKyc(clientId, this.clientKycStep.kycData).subscribe({
+          next: () => navigateToClient(),
+          error: () => navigateToClient()
+        });
+      } else {
+        const { kycType, ...updatePayload } = this.clientKycStep.kycData;
+        this.clientsService.updateClientKyc(clientId, this.clientKycStep.kycId, updatePayload).subscribe({
+          next: () => navigateToClient(),
+          error: () => navigateToClient()
+        });
+      }
     } else {
       navigateToClient();
     }

src/app/clients/kyc-exception.util.spec.ts

@@ -0,0 +1,175 @@
+/**
+ * Copyright since 2025 Mifos Initiative
+ *
+ * This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this
+ * file, You can obtain one at http://mozilla.org/MPL/2.0/.
+ */
+
+import {
+  deriveKycExceptionFields,
+  KycExceptionInput,
+  KYC_EXCEPTION_AADHAAR,
+  KYC_EXCEPTION_PAN
+} from './kyc-exception.util';
+
+const TODAY = '05 August 2026';
+
+/** Individual client, nothing previously recorded — the client-creation case. */
+const newIndividual = (panVerified: boolean, aadhaarVerified: boolean): KycExceptionInput => ({
+  panVerified,
+  aadhaarVerified,
+  aadhaarApplicable: true,
+  hadException: false,
+  previousReason: null,
+  todayFormatted: TODAY
+});
+
+/** Individual client that already carries an open exception. */
+const existingException = (
+  panVerified: boolean,
+  aadhaarVerified: boolean,
+  previousReason: string
+): KycExceptionInput => ({
+  panVerified,
+  aadhaarVerified,
+  aadhaarApplicable: true,
+  hadException: true,
+  previousReason,
+  todayFormatted: TODAY
+});
+
+describe('deriveKycExceptionFields', () => {
+  describe('at client creation', () => {
+    it('marks both PAN and Aadhaar when neither is entered or verified', () => {
+      expect(deriveKycExceptionFields(newIndividual(false, false))).toEqual({
+        isException: true,
+        exceptionReason: `${KYC_EXCEPTION_PAN}, ${KYC_EXCEPTION_AADHAAR}`,
+        exceptionResolved: false,
+        exceptionResolvedOn: null
+      });
+    });
+
+    it('marks only PAN when Aadhaar verified but PAN did not', () => {
+      expect(deriveKycExceptionFields(newIndividual(false, true))).toEqual({
+        isException: true,
+        exceptionReason: KYC_EXCEPTION_PAN,
+        exceptionResolved: false,
+        exceptionResolvedOn: null
+      });
+    });
+
+    it('marks only Aadhaar when PAN verified but Aadhaar did not', () => {
+      expect(deriveKycExceptionFields(newIndividual(true, false))).toEqual({
+        isException: true,
+        exceptionReason: KYC_EXCEPTION_AADHAAR,
+        exceptionResolved: false,
+        exceptionResolvedOn: null
+      });
+    });
+
+    it('raises nothing when both verify, and does not mark the client resolved', () => {
+      // A clean client never had an exception, so it must not appear in the Resolved tab either.
+      expect(deriveKycExceptionFields(newIndividual(true, true))).toEqual({
+        isException: false,
+        exceptionReason: null,
+        exceptionResolved: false,
+        exceptionResolvedOn: null
+      });
+    });
+
+    it('does not raise an Aadhaar exception for a non-individual client', () => {
+      // Companies submit a dummy masked Aadhaar; checking it would mean a permanent exception.
+      expect(
+        deriveKycExceptionFields({
+          panVerified: true,
+          aadhaarVerified: false,
+          aadhaarApplicable: false,
+          hadException: false,
+          previousReason: null,
+          todayFormatted: TODAY
+        }).isException
+      ).toBe(false);
+    });
+  });
+
+  describe('resolving', () => {
+    it('closes the exception once both checks pass, keeping the reason for the audit trail', () => {
+      const both = `${KYC_EXCEPTION_PAN}, ${KYC_EXCEPTION_AADHAAR}`;
+      expect(deriveKycExceptionFields(existingException(true, true, both))).toEqual({
+        isException: false,
+        exceptionReason: both,
+        exceptionResolved: true,
+        exceptionResolvedOn: TODAY
+      });
+    });
+
+    it('narrows to the outstanding item when only one of two verifies', () => {
+      const both = `${KYC_EXCEPTION_PAN}, ${KYC_EXCEPTION_AADHAAR}`;
+      // PAN verified, Aadhaar still outstanding — stays open, listing Aadhaar alone.
+      expect(deriveKycExceptionFields(existingException(true, false, both))).toEqual({
+        isException: true,
+        exceptionReason: KYC_EXCEPTION_AADHAAR,
+        exceptionResolved: false,
+        exceptionResolvedOn: null
+      });
+    });
+
+    it('narrows the other way round too', () => {
+      const both = `${KYC_EXCEPTION_PAN}, ${KYC_EXCEPTION_AADHAAR}`;
+      expect(deriveKycExceptionFields(existingException(false, true, both)).exceptionReason).toBe(KYC_EXCEPTION_PAN);
+    });
+  });
+
+  describe('re-opening', () => {
+    it('clears a prior resolution so a new exception returns to Pending', () => {
+      // Regression: without exceptionResolved=false the record still matched the Resolved query
+      // and a brand-new exception appeared as already closed.
+      const result = deriveKycExceptionFields({
+        panVerified: false,
+        aadhaarVerified: true,
+        aadhaarApplicable: true,
+        hadException: false,
+        previousReason: 'PAN Card Verification Failed',
+        todayFormatted: TODAY
+      });
+      expect(result.exceptionResolved).toBe(false);
+      expect(result.exceptionResolvedOn).toBeNull();
+      expect(result.isException).toBe(true);
+    });
+  });
+
+  describe('officer-entered reasons', () => {
+    it('keeps a manual reason alongside the automatic ones', () => {
+      const result = deriveKycExceptionFields({
+        ...newIndividual(true, true),
+        manualReasons: ['Address proof pending']
+      });
+      expect(result).toEqual({
+        isException: true,
+        exceptionReason: 'Address proof pending',
+        exceptionResolved: false,
+        exceptionResolvedOn: null
+      });
+    });
+
+    it('drops a stale automatic reason left in the form once the check passes', () => {
+      // The form still holds 'PAN Card Verification Failed' from a previous load; PAN has since
+      // verified, so it must not survive into the payload.
+      const result = deriveKycExceptionFields({
+        ...newIndividual(true, true),
+        manualReasons: [KYC_EXCEPTION_PAN]
+      });
+      expect(result.isException).toBe(false);
+      expect(result.exceptionReason).toBeNull();
+    });
+
+    it('does not duplicate a manual reason that matches an outstanding automatic one', () => {
+      const result = deriveKycExceptionFields({
+        ...newIndividual(false, true),
+        manualReasons: [KYC_EXCEPTION_PAN]
+      });
+      expect(result.exceptionReason).toBe(KYC_EXCEPTION_PAN);
+    });
+  });
+});

src/app/clients/kyc-exception.util.ts

@@ -0,0 +1,112 @@
+/**
+ * Copyright since 2025 Mifos Initiative
+ *
+ * This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this
+ * file, You can obtain one at http://mozilla.org/MPL/2.0/.
+ */
+
+/**
+ * Derives a client's KYC exception state from their verification status.
+ *
+ * A KYC exception is not something an officer should have to remember to tick — it is simply the
+ * fact that a mandatory identity check has not passed. Deriving it means the exception list can
+ * never drift out of step with reality: raising, narrowing and closing all fall out of whether PAN
+ * and Aadhaar are verified at the moment of the save.
+ *
+ * Shared by the client-creation stepper and the client-view KYC tab so both write identical state.
+ */
+
+export const KYC_EXCEPTION_PAN = 'PAN Card Verification Failed';
+export const KYC_EXCEPTION_AADHAAR = 'Aadhaar Verification Failed';
+
+/** The two reasons this module owns. Anything else on a record was added by an officer by hand. */
+export const AUTO_MANAGED_KYC_EXCEPTION_REASONS: string[] = [
+  KYC_EXCEPTION_PAN,
+  KYC_EXCEPTION_AADHAAR
+];
+
+export interface KycExceptionInput {
+  /** PAN verified against the Income Tax database. Unverified OR simply not entered → exception. */
+  panVerified: boolean;
+  /** Aadhaar verified against UIDAI. Unverified OR simply not entered → exception. */
+  aadhaarVerified: boolean;
+  /**
+   * False for non-individual clients, where no Aadhaar is collected (the payload sends a dummy
+   * masked value). Without this guard every company would carry a permanent Aadhaar exception.
+   */
+  aadhaarApplicable: boolean;
+  /** Whether an exception is already recorded — decides raise vs. resolve on a clean save. */
+  hadException: boolean;
+  /** Reason currently persisted, kept verbatim when closing so the audit trail survives. */
+  previousReason: string | null;
+  /** Officer-entered reasons beyond the two automatic ones; carried through untouched. */
+  manualReasons?: string[];
+  /** Today in the tenant's date format — stamped as exceptionResolvedOn when closing. */
+  todayFormatted: string;
+}
+
+export interface KycExceptionFields {
+  isException: boolean;
+  exceptionReason: string | null;
+  exceptionResolved: boolean;
+  exceptionResolvedOn: string | null;
+}
+
+/**
+ * Maps verification status to the four exception columns the API expects.
+ *
+ * Three outcomes:
+ * - **Something outstanding** → raise/keep the exception, listing only what is still failing. A
+ *   record that had both PAN and Aadhaar outstanding and has since verified PAN comes back with
+ *   Aadhaar alone, which is what narrows the entry rather than closing it.
+ * - **Nothing outstanding, exception existed** → close it. `exceptionReason` is retained on
+ *   purpose: the Resolved tab shows what was resolved, and clearing it would erase the record of
+ *   why the exception was ever raised.
+ * - **Nothing outstanding, no exception** → leave every flag off, so a clean client never appears
+ *   in either tab.
+ */
+export function deriveKycExceptionFields(input: KycExceptionInput): KycExceptionFields {
+  const outstanding: string[] = [];
+
+  if (!input.panVerified) {
+    outstanding.push(KYC_EXCEPTION_PAN);
+  }
+  if (input.aadhaarApplicable && !input.aadhaarVerified) {
+    outstanding.push(KYC_EXCEPTION_AADHAAR);
+  }
+
+  // Officer-added reasons ride along, but the two automatic ones are filtered out first — a stale
+  // 'PAN Card Verification Failed' left in the form must not survive PAN actually being verified.
+  for (const reason of input.manualReasons || []) {
+    const trimmed = (reason || '').trim();
+    if (trimmed && !AUTO_MANAGED_KYC_EXCEPTION_REASONS.includes(trimmed) && !outstanding.includes(trimmed)) {
+      outstanding.push(trimmed);
+    }
+  }
+
+  if (outstanding.length > 0) {
+    return {
+      isException: true,
+      exceptionReason: outstanding.join(', '),
+      exceptionResolved: false,
+      exceptionResolvedOn: null
+    };
+  }
+
+  if (input.hadException) {
+    return {
+      isException: false,
+      exceptionReason: input.previousReason || null,
+      exceptionResolved: true,
+      exceptionResolvedOn: input.todayFormatted
+    };
+  }
+
+  return {
+    isException: false,
+    exceptionReason: null,
+    exceptionResolved: false,
+    exceptionResolvedOn: null
+  };
+}