TDS or Tax Deducted at Source, is one of the modes of collection of taxes, by which a certain percentage is deducted at the time of payments of various kind such as salary, commission, rent, interest on dividends etc and deducted amount is remitted to the Government account. Form 15G or 15H is submitted to request income provider for not deducting tax or TDS for following income:
1. Payment of accumulated balance due to an employee (PF withdrawal)- Section 192A of the IT ACT
2. Interest on securities- Section 193 of the IT ACT
3. Dividends- Section 194 of the IT ACT
4. Interest other than Interest on securities- Section 194A of the IT ACT
5. Payment in respect of life insurance policy- Section 19DA of the IT ACT
6. Payments in respect of deposits under National Savings Scheme, etc.- Section 194EE of the IT ACT
7. Income in respect of units- Section 194K of the IT ACT
Form No 15G: Only a person who is resident in India can submit Form No. 15G. So an NRI cannot submit this form. Any person other than a company can submit Form No. 15 G. So any individual, HUF, Trust, Association of Persons or Body of Individuals can submit Form No. 15G. Form 15G is submitted by individuals who are less than 60 years of age.
Form No. 15H: Any resident Individual who is above sixty years of age or completes sixty years during the financial year can submit Form No. 15H provided his tax liability on the basis of his estimated income is nil for the financial year.
Form 15H can be furnished even if the aggregate total income is more than the basic exemption limit as per the Income Tax Slabs but Form 15G can only be furnisihed if the aggregate income is less than the basic exemption limit.
Form 15G and Form 15H have the validity of only one financial year. These forms are valid only for the financial year in which you have furnished these forms.
Vide Notification No 76/2015/F. No 133/50/2015- dated 29th September 2015, Ministry of Finance, Form 15G and Form 15H by the deductee can be furnished in any of the following modes:
The person responsible for deducting tax now required to file statement of form 15G and 15H quarterly with income tax department. CBDT issued Notification No.7/2016 [F.NO.DGIT(S)/ADG(S)-2/TDS E-FILING NOTIFICATION/110/2016], DATED 4-5-2016 for process and requirements of submission of statement of 15G and 15H. Said Notification and process of submission of Statement of 15G and 15H has been attached herewith as Annexure A.
Ref: Section 197A of the Income Tax Act 1961,Rule 29C of Income Tax Rules 1962 and Notifications referred above.