As you are aware, subject to certain conditions, you can furnish self-declaration Form 15G / 15H to banks, for not deducting TDS on your Fixed Deposit interest income. For details see Form 15H And 15G Decoded.
The Income Tax Department has now simplified the process of filing your Form 15G / 15H.
This includes...
... simplified format and procedure for self declaration by the tax payer, and
... simplified procedure of compliance by the tax deductor.
Discussed below are the salient aspects of the notification [S.O. No.2663(E) dated 29th September 2015], issued by the Central Board of Direct Taxes, in this regards.
b. Ease the compliance burden
for both the tax payer and tax deductor.
2. Tax Deductor will not deduct any tax.
3. Tax Deductor will allot a Unique Identification Number (UIN) to all such self-declarations.
4. Quarterly TDS statements, to be submitted by Tax Deductor, will contain this UIN along with the particulars of Form 15G/15H.
5. Physical copies of Form 15G / 15H are NO LONGER required to be submitted by Tax Deductors to the IT Department.
6. However, Tax Deductors will have to retain the Form 15G / 15H for seven years.
Well laid down procedures, formats and standards etc. for (a) furnishing and verification process in electronic form, (b) allotment of Unique Identification Number to all self-declarations and (c) submitting the self-declarations to the income tax authorities, would be specified separately.
A. If you are a senior or very senior citizen:
You can ask your bank not to deduct tax on your fixed deposit interest income PROVIDED your tax liability on the total estimated income, during the year, would be NIL.
For this you have to furnish self-declaration in the Form 15H.
B. If you are below the age of sixty:
You can ask your bank not to deduct tax on your fixed deposit interest income PROVIDED
(a) your tax liability on the total estimated income, during the year, would be NIL; AND
(b) your total "interest income" during the year will NOT exceed the basic tax exemption limit (presently Rs.2.50 lakhs for FY 2015-16)
For this you have to furnish self-declaration in the Form 15G.
C. This facility is for resident Indians only. NRIs are not allowed to furnish Form 15G / 15H.
D. It has to be submitted in duplicate (this, I guess, will change as per the new procedures).
E. It is valid for only one year. You have to submit fresh Form for each financial year.
F. If, for any reason, TDS is deducted, you can always claim it back by filing IT Return.
G. If you have submitted your PAN, the TDS rate is 10%. Else TDS @20% would be deducted.
The Income Tax Department has now simplified the process of filing your Form 15G / 15H.
This includes...
... simplified format and procedure for self declaration by the tax payer, and
... simplified procedure of compliance by the tax deductor.
Discussed below are the salient aspects of the notification [S.O. No.2663(E) dated 29th September 2015], issued by the Central Board of Direct Taxes, in this regards.
Objective of this simplification
a. Reduce the cost of complianceb. Ease the compliance burden
for both the tax payer and tax deductor.
Simplified Procedure for Form 15G / 15H
1. Tax Payer can submit the self-declaration in Form 15G or 15H either in the paper form or electronically.2. Tax Deductor will not deduct any tax.
3. Tax Deductor will allot a Unique Identification Number (UIN) to all such self-declarations.
4. Quarterly TDS statements, to be submitted by Tax Deductor, will contain this UIN along with the particulars of Form 15G/15H.
5. Physical copies of Form 15G / 15H are NO LONGER required to be submitted by Tax Deductors to the IT Department.
6. However, Tax Deductors will have to retain the Form 15G / 15H for seven years.
Well laid down procedures, formats and standards etc. for (a) furnishing and verification process in electronic form, (b) allotment of Unique Identification Number to all self-declarations and (c) submitting the self-declarations to the income tax authorities, would be specified separately.
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| Electronic submission or e-filing of Form 15G / 15H makes life really simple... |
Effective Date
The revised procedure is effective from Oct 1, 2015.Recap of Form 15G and 15H
Banks are required to deduct tax in advance (called TDS) on your fixed deposit interest income, in cases where it exceeds Rs.10,000 (for all branches of a particular bank put together) in a given financial year.A. If you are a senior or very senior citizen:
You can ask your bank not to deduct tax on your fixed deposit interest income PROVIDED your tax liability on the total estimated income, during the year, would be NIL.
For this you have to furnish self-declaration in the Form 15H.
B. If you are below the age of sixty:
You can ask your bank not to deduct tax on your fixed deposit interest income PROVIDED
(a) your tax liability on the total estimated income, during the year, would be NIL; AND
(b) your total "interest income" during the year will NOT exceed the basic tax exemption limit (presently Rs.2.50 lakhs for FY 2015-16)
For this you have to furnish self-declaration in the Form 15G.
C. This facility is for resident Indians only. NRIs are not allowed to furnish Form 15G / 15H.
D. It has to be submitted in duplicate (this, I guess, will change as per the new procedures).
E. It is valid for only one year. You have to submit fresh Form for each financial year.
F. If, for any reason, TDS is deducted, you can always claim it back by filing IT Return.
G. If you have submitted your PAN, the TDS rate is 10%. Else TDS @20% would be deducted.
