15g / 15h validity starts when.....

If that persons final tax liability as per IT provisions is nil then the banker is supposed to credit the whole amount as he has already declared and submitted Form 15G/15H, as the case may be. Forms can be submitted if he fulfills two conditions: a) Final tax liability as per Act is nil and b) Aggregate of interest or other income etc recvd during FY does not exceed the exemption limit like 1,80,000 or 1,90,000 as the case may be. Here Final tax liability in a) condition above would mean after 80c deductions. However, if the interest part is more than exemption limit, then b) condition is not satisfied. In instant case, as he got only 1,55,000 he has not exceeded exemption slab w.r.t. his interest part. Form 15G is for non-senior citizens and above a and b conditions apply to these people. Form 15H meant for senior citizens and only condition 'a' is applicable to them. So check out in which category he is and decide accordingly. Those relevant Forms are to be submitted every year freshly.

No certificate is needed from depositor.15G/H(Which is applicable) is sufficient for crediting interest.

Thank you for the clarification. I forgot to add one more equally important point i.e. - As per the rules and the Act the manager is supposed to send a copy of Form 15G to the income tax commissioner by 7th of the following month. This is not being done by the manager.

Now as a 'practitioner' I want to know the possible consequences the manager has to face for this lapse.

- In consequence to this

will it have any affect on the depositor (if the depositors does not want to get attracted by the IT Dept. under any circumstances.)

Thanks once again in anticipation of a valuable reply like above.

I THINK YOU NEED NOT WORRY ABOUT THIS NON SUBMISSION OF FORM 15G/H IF AT THE TIME OF TDS FILING IF THEY HAVE MENTIONED THAT FORM 15G/H LIST THEN ONLY PROBLEM WILL ARISE THAT TO MANAGER NOT FOR CUSTOMER/ DEPOSITOR'S IF THAT LIST NOT MENTIONED AT THE TIME OF TDS FILING NO NEED TO WORRY NOW ONWARDS ADVICE TO SUBMIT WITH IN THE TIME

IF THEY MENTIONED IN FILING AND NOT SUBMITTED ITD WILL RAISE THE NOTICE FOR NON DEDUCTION OF THIS DEPOSITORS' WITH INTEREST.

Most of the persons dont know what is right time to submit 15g/h.

It has to be submitted at the starting of your financial year for FY 2012-2013 = 15 g/h has to be submitted in april 2012 it will be safe for you that bank will not deduct tax in whole year,

Bank has practice that they link 15 g/h entry to customer ID of bank a/c holder, no question is arise of TDS in that FY.

submit every year in april month your 15 g/h = SAFE SIDE

otherwise you can submit anytime before TDS deduction.

My analysis:- The Dept. is asking for the information of those who got interest less than the threshold limit-this is to have over all information and control of the income.

Now if you 1) do not submit Form 15G/H in time (within 7th day of the following month) 

                    2) do not include this information in quarterly TDS returns does it not amount to suppression of     facts.   

                   3) If at all at a future date the depositor (say who has 2 deposits, which would give him a return of Rs. 150000 and 160000 in different banks and penalises him can

                                 -the depositor may or may not have escape routes.

                               - will the bank manager have any for not submitting form 15G/H (in time) and not including the same in his quarterly return.