Tds libility when 15g /15h taken

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2012 If deductor has taken 15G/15H declation from deductee then -

1) Whether deductor will free from liability to deduct TDS ?

2) What will be the position if deductor pays interest more than basic exumption limit ?

CA.Vinita Gupta

CA.Vinita Gupta (Expert)

21 March 2012 15G and 15H are basically submitted by individuals whose income is lower than the Taxable Limits. The deductor will not be free from tax liabilty, If the deductor pays more interest then he will be penalised by the IT Deptt if identified by them

CA Prashant Gupta

CA Prashant Gupta (Expert)

21 March 2012 when 15G/15H is received TDS deduction liability is withdraw.
15G or 15H says that receiptant of income has income less then basic exemption limit. so if payer is giving more intt than exemption limit then 15G or 15H will lost it reliability. So he will be liable to deduct TDS

Krishna Mohan

Krishna Mohan (Expert)

21 March 2012 @I beg to differ with Prashant and Vinita, How can the dedicator know whether person who is giving forms 15G or 15H is having taxable turnover. Eventhough the payment exceeds basic exemption limit, the payee may be having deductions under chapter VIA or some other deductions. Hence, to my understanding, TDS need not be deducted even the payment exceeds BEL (basic exemption limit).

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)

22 March 2012 Let me clarify that once 15G or 15H is received by the deductor which is to be submitted to the concerned authorities before the due date. Once this form is filed to the respective authorities then the onus of payment of tax remains with the receipant of interest or any other income. Similar situation where the certificate u/s197 is procured and the tax liability is more than it is not the liability of the person who deducts tax at a lower rate. Therefore, the false declaration by the receiver of the income will be liable for the same and not the deductor. I agree with Vineeta Gupta in this regard.

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