Form 15g / 15h

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@Learner (Querist)

12 April 2016 One of my client pays interest of Rs 15000 during financial year. But the person to whom he pays the interest is having income less than maximum amount not chargeable to tax. My question is whether am i required to deduct tax, or Form 15G would be sufficient ? Can Form 15G help me out from deducting TDS ? Form 15G is applicable for banks only or in this case also will form 15G work ? Please reply urgently

Vinod Venugopal

Vinod Venugopal (Expert)

13 April 2016 Your client ( Individual / HUF) is liable to deduct tax at source only if he/ it carries on a business whose Sales/Turnover exceeds Rs.1.00 Crore. In other words if such individual /HUF who pays interest is one who does not carry on a business (OR) is one who carries on a business, but whose Sales / Turnover is less than Rs.1.00 Crores in the FY , then such individual / HUF is not liable to deduct TDS on interest paid by him / it.

Amol S Joglekar

Amol S Joglekar (Expert)

13 April 2016 15G/H is applicable in such a cases, subject to however, TDS provisions are applicable to such a borrower.

@Learner

@Learner (Querist)

14 April 2016 I know all this and I mentioned such in my question also .. I need process.. he is submitting 15G.. and now what to do ahead.. tell me process after that

Amol S Joglekar

Amol S Joglekar (Expert)

20 April 2016 is your client tax auditable for previous year? Then only the provisions of TDS will be made appplicable to your client with effect from the subsequent financial year

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