Form 15G and Form 15H: Myths and Facts
Exploring Form 15G and Form 15H: Myths vs Facts
Form 15G and Form 15H are some of the most misunderstood concepts. There has been quite some confusion and misinformation floating around about these Forms. Due to this, many myths are going around this concept. So, in this post, we will clear up some of those myths and give you the facts.
|
MYTHS |
FACTS |
|---|---|
| Anyone who wishes to avoid tax deductions can use Form 15G and 15H. | Only people whose Income is below the taxable limits and have Nil Tax liability can use this Form. |
| Once we declare Income in Form 15G and Form 15H, paying tax is not required for the same. | Irrespective of 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 for Income. | As per the specified provisions, only those with NIL tax liability can submit these forms. But if there is a tax liability, they must undoubtedly pay the requisite tax. Further, by paying the tax, they risk giving a wrong declaration. Hence, please be doubly careful before giving Form 15G and Form 15H. |
| We should submit Form 15G and Form 15H only to banks/Financial Institutions/Payers. | 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, who can make further inquiries. |
| 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 must be submitted to every department where you hold the deposits. E.g., 3 separate forms for deposits in 3 different branches. |
| I will not have to submit the PAN details along with the declaration Form since my Income is below the taxable limit and the tax payable is nil. | No. Persons giving declarations using Form 15G and Form 15H will have to provide the PAN details mandatorily. 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.. | Forms 15G and 15H apply only for payments 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.
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