Submission of form 15g and form 15h

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2015 Dear Sir,

ABC is a Co operative Society. They accept the deposits and pay Interest to its customers. They have received the FORM 15g & 15h (Declartions regarding non deduction of TDS). The question here is is ABC liable to submit those forms in the INCOME TAX office ?

Also give the provisions governing the submission of Form 15g and 15h as per Income Tax Act 1961

Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 February 2015 The forms has to be submitted to Chief commissioner/Commissioner of income tax within 15 days of receipt.

Form No 15G: Only a person who is resident in India can submit Form No. 15G. So an NRI cannot submit this form. Any person other than a company can submit Form No. 15 G. So any individual, HUF, Trust, Association of Persons or Body of Individuals can submit Form No. 15G. Form 15G is submitted by individuals who are less than 60 years of age. Form No. 15H: Any resident Individual who is above sixty years of age or completes sixty years during the financial year can submit Form No. 15H provided his tax liability on the basis of his estimated income is nil for the financial year. Please ensure to submit your PAN details to the bank while submitting the Form No. 15G or 15H. In case you fail to include your PAN number to the bank, the bank will deduct TDS @ 20% against the applicable rate of 10% even if you have submitted Form No. 15G and 15H. Please take an acknowledgement from the bank for Form No. 15 G or 15H while submitting it. The Form No. 15G or 15H as the case may be, should be submitted at the beginning of the year so as to avoid a situation where bank has already deducted the tax before you submit the form. However in case the bank deducts the tax inspite of the fact that you have submitted the form or before you actually submit the same, the bank will not refund the tax already deducted, as the bank would have already deposited the tax with the government. In such a situation the only option available with you is to file your income tax return and claim the amount of TDS a refund. Form 15G and Form 15H have the validity of only one financial year. These forms are valid only for the financial year in which you have furnished these forms. If you want to apply for nil TDS in the new financial year, then you will have to resubmit these forms. Form 15H or 15G are meant to prevent TDS and not to avoid tax or file your tax return. You may be required to file your tax return if your total income before the deductions is above the basic tax exemption limit.

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2015 Dear Sir,

Thank you so much for the information.

can you please specify the provision or rule regarding this submission of Form 15G & 15H in the Income Tax Act 1961

Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 February 2015 See section 197A(1), 197A(1A) and rule 29C.

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