A brief discussion about Form 15 G/H to avoid deduction of TDS (Tax Deducted At Source)

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Ques : What is Form 15G/H under Income Tax Act,1961 ?

Ans : These are the Forms prescribed under Income Tax Act, where Payee being a person other than Company/Partnership Firm/LLP can furnish these forms to the payer of certain nature of incomes. These forms are the Kind of Declaration that tax on the total income will be nil.

 

Ques : What are the Prerequisites of Furnishing these Forms ?

Ans : Following are the Prerequisites:

·        Form to be filled in Duplicate (2 Copies).

·        It should be Signed and Duly Verified.

·        Copy PAN of the Payee shall be attached with the Form.

·        It states that the Tax on the Total Income will be NIL.

 

Ques : Difference b/w Form 15G and 15H ?

Ans :

1)    Form 15H is Furnished by the Senior Citizen ( means an Individual resident of India who is age of 60 Years or more at any time during Previous Year). Form 15G is Furnished by person other than Senior Citizen.

2)    Declaration under :

15G : Tax on Total Income will be nil.

15H : Tax on his estimated total income of the Previous Year in which such income is to be included in computing his total income will be Nil.

In simple words,

15G is a declaration which states that the total income will not exceed the Basic Exemption Limit, whereas 15H is a declaration which states that the Tax on the Total Income will be NIL. i.e; though the income be more than basic exemption limit but tax on such income will be NIL.

 

Ques : Nature of Income where Form 15G/H is admissible ?

Ans : Following are the nature of income only where Form 15 G/H can be furnished by the person :

·        Tds on Accumulated Balance of Provident Fund. (Section 192A).

·        Tds on Interest On Securities (Section 193).

·        Tds on Interest (Other Than Securities) (Section 194A).

·        Tds on Insurance Commission (Section 194D).

·        Tds on Maturity Proceeds of Life Insurance Policy (Section 194DA).

·        Tds on Rent (Section 194I).

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