In some of the previous posts, we have been looking at the different facets concerning Form 15G and Form 15H. There has also been quite some confusions and misinformation floating around. So in this post, we give you some of the important facts regarding the same.
|Any person who wishes to avoid tax deduction can make use of Form 15G and Form 15H.||Only people whose income is below the taxable limits and have Nil Tax liability can make use of this form.|
|Once the declaration is given in Form 15G and Form 15H, it is not necessary to declare this income in return of Income.||Regardless of the fact whether the Form is used for the declaration or not, the respective income should compulsorily be declared in the return of income.|
|Once the declaration is given in Form 15G and Form 15H, paying of tax is not required for the same.||As per the provisions specified, only the people with NIL tax liability only can submit these forms. But if there is a tax liability, then they have to undoubtedly pay the requisite tax. Further, by paying the tax, they run the risk of giving a wrong declaration. Hence, before giving Form 15G and Form 15H, please be doubly careful.|
|Form 15G and Form 15H are to be submitted only to banks/Financial Institutions/Payer.||This is correct only partly. The person who receives the Form 15G and Form 15H i.e, deductor / payer is required to submit one copy of the Form to the Commissioner of Income-tax. Thus, the information is passed to the Income tax department and they can make further inquiries on the same.|
|Submitting Form 15G and Form 15H once is sufficient.||No. These forms have to be submitted every Financial year at the beginning of the Financial year.|
|Even if the deposits are held in different branches, submitting of only one form is enough.||No. The forms have to be submitted in each and every branch where you hold the deposits. E.g., if your deposits are held in 3 different branches of State Bank of India, then the declaration will have to be given to each branch separately.|
|I will not have to submit the PAN details along with the declaration form since my income is below the taxable limit and tax payable is nil.||No. Every person giving declaration using Form 15G and Form 15H will have to mandatorily provide the PAN details along with the declaration form regardless of their Income Tax status. Otherwise, tax will be deducted at the rate of 20% on the Interest.|
|Form 15G or Form 15H can be used for not deducting of TDS for all types of payments such as Contract payments, Professional fees, rent etc..||The forms 15G and 15H can be used only for payments which are in the nature of Interest of Securities, Dividend, and Interest other than Interest on Securities (Bank/Company Deposits), NSS Interest on Units. These forms cannot be used for any other type of payments.|
Related topics: New rules for submitting Form 15G / 15H, Procedure for allotting UIN.