Recent Changes in Acceptance and Submission of Form 15G/15H to Income Tax Department

Recent Changes in Acceptance and Submission ofForm 15G/15H to Income Tax Department (25 April 2016) By: CA TusharTibrewal K.K. Tibrewal& Co. Varanasi Page 2K.K. Tibrewal& Co. Chartered Accountants Old regime till 30thSeptember 2015 Person making investment in Bank (Declares his total income within taxable limit) Fills Form 15G/15H (as applicable)Banks to submit the collected Form 15G/15H to Income Tax Department Submit details of Interest paid against Form 15G/15H in quarterly TDS return TDS return Neglected by BanksBanks Income Tax Department Page 3K.K. Tibrewal& Co. Chartered Accountants New regime w.e.f. 1stOctober 2015 Person making investment in Bank (Declares his total income within taxable limit) Fills Form 15G/15H (as applicable)Banks to submit the collected Form 15G/15H to Income Tax Department Submit details in quarterly TDS returnTDS return Change in process Abolished Detailed process explained on next page Detailed process explained on next page Neglected by Banks Banks Income Tax Department Page 4K.K. Tibrewal& Co. Chartered Accountants New regime w.e.f. 1stOctober 2015 (Cont.) Person making investment in Bank (Declares his total income within taxable limit) Fills Form 15G/15H (as applicable) ►Generate Unique Identification Number (‘UIN’) for each form received. Detailed process explained on next page ►Details of all 15G/15H forms received during a quarter to be uploaded on Income tax e-filing portal Submit details in quarterly TDS returnTDS return Either electronically or in physical form Detailed process explained on next page No change Banks Page 5K.K. Tibrewal& Co. Chartered Accountants New regime –Detailed Process of E-filing Form 15G/15H ►The declaration in Form 15G/15H can be either submitted electronically or in physical form by the customers (Banks need to develop the system of accepting electronic declarations) ►A Unique Identification Number (‘UIN’) shall require to be allotted for the declarations (Paper/Electronic) received by Bank. UIN shall be allotted in the following manner: ►UIN shall consist of following three fields; ►Sequence number (10 alphanumeric for form 15G/H) (Start from 1 for every Financial year) ►Financial year for which declaration is being furnished ►TAN of Payer (For E.g. A complete UIN will be G000000001201516 XXXX00000X) Form 15GForm 15H 10 alphanumeric characters starting with ‘G’ followed by 9 digits (Eg.G000000001) 10 alphanumeric characters starting with ‘H’ followed by 9 digits (Eg.H000000001) Sequence No.Financial Year TAN Page 6K.K. Tibrewal& Co. Chartered Accountants Pre-requisites for E-filing of Form 15G/15H ►Banks are required to allot UIN for each declaration form 15G/15H received w.e.f. 1stOctober 2015. ►For e-filing the details on income tax portal it is mandatory to use have a Digital Signature Certificate (‘DSC’) of the AuthorisedSignatory (‘Branch Managers’), therefore it is required by to issue DSC to every Branch Manager ►Banks should implement the system of online acceptance of such declarations to comply with the guidelines. Page 7K.K. Tibrewal& Co. Chartered Accountants Information required for filing of Form 15G/15H ►The following details shall be required for Furnishing the quarterly return of Form 15G/15H: ►Unique Identification No. ►Name of the customer ►PAN of the customer ►Address and mobile number ►Whether assessed to tax under the Income-tax Act,1961 (If yes, for which year) ►Estimated income for which this declaration is made ►Estimated total income of the Financial year (including estimated income from investment for which Form 15G/15H has been submitted) ►Total No. of Form No. 15G/15H filled ►Aggregate amount of income for which Form No.15G/15H filled ►Date on which Declaration is received (DD/MM/YYYY) ►Amount of income paid (Investment number wise) ►Date on which the income has been paid/credited ►Identification number of relevant investment/ account(For e.g. Fixed Deposit certificate number). Page 8K.K. Tibrewal& Co. Chartered Accountants Other points to be noted… ►The government has introduced this new mechanism of online filing of Form 15G/15H details vide Notification Number 76/2015, dated September 29, 2015 w.e.f. 1stOctober 2016 ►Even though the process of e-filing such details on income tax portal has recently been laid down, it is the duty of the Banks comply with the notification and file details of the Form 15G/15H received by Branches from 1stOctober 2015 onwards in this electronic form. ►The details of Interest paid on the investments supported by such declarations (Form 15G/15H) where no tax has been deducted should also be filed in the quarterly TDS returns of the branches alongwiththe details of tax deducted thereon. (We have observed that there is major non-compliance in this area) Non compliance to the new rules and procedures might attract monetary penalties in coming future, so it is advised to adhere to the changes laws/procedures. Thank You! By: CA TusharTibrewal Email : Tushar_tibrewal@yahoo.com; Cell: +91 9560831129