Simplifying Tax for C.A's and Taxpayers
New rule 29C Regarding Furnishing of Form 15G/15H w.e.f 01/10/2015

New rule 29C Regarding Furnishing of Form 15G/15H w.e.f 01/10/2015

Income tax (14th amendment) Rules, 2015 vide notification no. S.O.2663 (E) dated 29/09/2015

Simplification of procedure for form 15G and 15H.No need to submit these forms to income tax department, procedure to be specified soon.

Income tax has issued following press release dated 30/09/2015:

“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 format and procedure for self declaration of Form No.15G or 15H.

The procedure for submission of the Forms by the deductor has also been simplified. Under the simplified procedure, a payee 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 to be specified separately.

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 day of October, 2015.

Synopsis of rule 29C:

1. Declaration in form 15G or 15H may be furnished by assessee to deductor

a. In paper form

b. Electronically after duly verifying through an electronic process in accordance with procedures, formats and standards to be specified by the principal director general of Income tax (Systems) for the purposes of furnishing and verification of the declaration to the income tax authority.

2. Deductor shall allot a unique identification number to each declaration received by him in Form 15G or 15H respectively during every quarter of the financial year in accordance with the procedure to be specified.

3. Deductor shall furnish the particulars of declaration received by him during any quarter of the financial year along with the unique identification number allotted by him in the statement of deduction of tax i.e. quarterly TDS returns of the said quarter.

4. Even if there is no tax deduction in the quarter deductor shall furnish statement of deduction of tax containing the particulars of declaration received in form 15G or 15H as the case may be.

5. Such declarations shall be kept for a period of seven years as an income tax authority may, before the end of seven years from the end of the financial year in which the declaration has been received, require the deductor to furnish or make available the declaration for the purposes of verification or any proceeding under the Act in accordance with the procedures, formats and standards specified by Principal Director General of Income-tax (Systems).

6. Paste the following link in browser for notification and to check the new forms 15G and 15H substituted for old forms -> Incometaxindia.

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