Tax payers seeking non deduction of tax from certain incomes are required to file a self declaration in Form No. 15G or Form No.15H as per the provisions of Section 197A of the Income-tax Act, 1961.
In order to reduce the cost of compliance and ease the compliance burden for both, the tax payer and the tax deductor, the Central Board of Direct Taxes has simplified the procedure for self declaration and introducing new Form 15G and new Form 15H in new format. The procedure for submission of the Forms by the deductor has also been simplified. The revised procedure shall be effective from the 1st October, 2015.
What is Form no. 15G / Form no. 15H?
If your total income is below the taxable limit, you can submit Form 15G and Form 15H to the bank or any deductor requesting them not to deduct any TDS on your interest. Form 15H is for senior citizens who are 60 years or older and Form 15G is for everybody else.
Form 15G/H help customers to avail exemption from TDS on interest earned on investments like bank fixed deposits or EPF withdrawalsin a financial year. A fresh form 15 G/H to be submitted in each new financial year by the start of every financial year.
The maximum interest income not charged to tax during the financial year where form 15 G/H is submitted at bank(s) is as below :
Upto Rs 2,50,000/- for residents of India below the age of 60 years or a person( not being a company or firm ).
Upto Rs 3,00,000 for senior citizen residents of India who are between the age of 60-79 years at any time during the FY.
Upto Rs 5,00,000 for senior citizen residents of India who is 80 years or more at any time during the FY.
New Form 15G & Form 15H
Under the simplified procedure, a payee / an individual can submit the self-declaration either in paper form or electronically.
- The deductor will not deduct tax and will allot a Unique Identification Number (UIN) to all self-declarations in accordance with a well laid down procedure.
- The particulars of self-declarations will have to be furnished by the deductor along with UIN in the quarterly TDS statements.
- The requirement of submitting physical copy of Form 15G and 15H by the deductor to the income-tax authorities has been dispensed with.
- The deductor will, however be required to retain Form No.15G and 15H for seven years.
- The revised procedure shall be effective from the 1st October, 2015.
- Stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee is also eligible for deduction under this section even assessee has not taken any loan .
There is no requirement that for loan, ,house property must be mortgaged to the institution from where the loan has been taken ,but it should be used for the purpose of purchase /construction of house property.