Form 15G and Form 15H is one of the most misunderstood concepts. There has been quite some confusions and misinformation floating around about these Forms. Due to this, there are a lot of myths going around this concept. So in this post, we will clear up some of those myths and give you the facts.
|Anyone who wishes to avoid tax deduction can make use of Form 15G and 15H.||Only people whose income is below the taxable limits and have Nil Tax liability can make use of this form.|
|Once we declare income in Form 15G and Form 15H, paying of tax is not required for the same.||Irrespective of the fact whether we use the form for declaration or not, we should declare this income in the return of income.|
|Submission of Form 15G / 15H is enough. It is not necessary to declare this income in return of Income.||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.|
|We should submit Form 15G and Form 15H only to banks/Financial Institutions/Payer.||This is correct only partly. The person who receives the Form 15G and 15H deductor / payer has to submit one copy of the Form to the Commissioner of Income-tax. Thus, the information goes 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 to each and every branch where you hold the deposits. E.g., 3 separate forms for deposits in 3 separate branches.|
|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. Persons giving declaration using Form 15G and Form 15H will have to mandatorily provide the PAN details. Also, along with the declaration form regardless of their Income Tax status. Otherwise, the tax deduction will be 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 is applicable 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. It is not usable for any other types of payments.|
This ends our post on Myths and facts about Form 15G and Form 15H. If you have any queries or doubts kindly drop them in the comment section below.