15-G/H form

Hi Sunali, the following is an extract from Mr. S. Rajaratnam's answer to a Senoir citizen's question on the above issue, published in "The Hindu". Hope this will resolve your query.

Question:

I am aged 80 years having no taxable income. I am an agent of LIC. Tax is deducted as soon as my commission touches Rs. 5,000 in a year. LIC is not prepared to accept Form 15G or 15H. Therefore, it becomes necessary to file a nil return to the ITO along with Form No. 13 to get the refund. How long should I continue to do this at my advanced age and failing health? My personal pleading to the ITO did not have any effect for giving a permanent exemption certificate for TDS. Many agents are having similar problems. How is LIC commission different from other types of income to prevent the use of Form 15G/ 15H for TDS exemption?

Answer:

Sec. 194D provides for TDS from the insurance agency commission, where the aggregate amount during any financial year exceeds Rs. 5,000. Sec. 197A provides for self-declaration on securities, other interest under Sec. 193 and 194A respectively, besides interest on deposits from National Savings Scheme under Sec. 194EE and income from mutual funds under Sec. 194K. Sec. 194D and some other sections such as commission to lottery agents under Sec. 194G, commission and brokerage under Sec. 194H, rent under Sec. 194I, fees for professional services under Sec. 194J and payments of chargeable income to non-residents under Sec. 195 do not provide for self-declaration in Form 15G/ 15H, even when the recipient is not liable to tax.

thx Dave...it was quite helpful..

form 15g/15h is applicable only for following sections

sec.193

sec193A

sec194EE

sec 194K (not relevant now)

form no. 15H & 15G are required for me