Form 15G/H, as applicable, is submitted to banks etc. where an assessee estimates that his income would be below taxable limit. This form is usually submitted at the start of a financial year. After submitting the form, an assessee receives some taxable capital gains (either long term or short term or both) such as from encashment of mutual fund units, or sale of property/shares/other assets, resulting in his income exceeding the tax-free limit and creating a tax liability. These unplanned transactions may take place later during the financial year - not at the time of submission of Form 15G/H.
Should the assessee be required to 'withdraw' the 15G/H forms submitted earlier, if such a provision exists? Would he be penalised for submitting 'false' 15G/H earlier? How does the I-T Department view such cases?
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