Sunday, February 12, 2012

Who can submit Form 15G/15H

       Form No. 15G/15H as a self declaration by a particular person U/S 197A(I), (IA) AND (IB). 

A person, other than a company or firm may furnish a declaration in writing in duplicate in new Form No. 15G to the payer to the effect that there is no tax payable on his Total Income.  In this case, the payer shall not deduct any tax at source.  The payer of the income is required to deliver to the commissioner one copy of declaration given under new Form 15G on or before the 7th day of the month next following the month in which the declaration is furnished to him. 

       However, w.e.f. 01-06-2002 as per the amendment made by the Finance Act, 2002 the assessee cannot furnish the declaration under this clause if the aggregate during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to tax; 
  1. Interest on Securities
  2. Dividend
  3. Interest other than interest on securities. 
  4. Payment in respect of deposit under National Saving scheme.
  5. Income in respect of units. 
      Notwithstanding anything contained in section 197A(IB), above, no deduction of tax shall be made from the above incomes in the case of an individual resident in India who is of the age of 60 year (w.e.f. 01.04.2011 and onwards) or more at any time during the previous year,  if such individual furnishes to the payer, a declaration in writing in duplicate in Form No. 15H to the effect that the tax on his estimated total income of the previous year in which the above income is to be included in computing has total income will be Nil. 

     In the case of such senior citizen, the income from the above sources can be more than the maximum amount which is not chargable to tax but the tax on the estimated total income, inclusive of such incomes, should be Nil. 

       As per section 206AA(2), declaration under Form No. 15G or 15H shall not be valid if it does not contain the permanent account number of the declarant.  In case any declaration becomes invalid, the deductor shall deduct the tax @ 20%. 

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