Form 15G/15H-depositor to furnish declaration each year of all up to date investments – CBDT Notification

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Form 15G-15H-depositor to furnish declaration each year of all up to date investments including current Fixed Deposit for which form is given.

Form 15G-15H-depositor to furnish declaration each year

Declaration in Form 15G/15H to be furnished to the Deductor/Payer for each Financial Year

F.No. Pr. DGIT(S)/CPC(TDS)/NOTIFICATION/2017-18

Government of India
Ministry  of Finance
Central Board of Direct Taxes
Directorate of lncome-tax(Systems)
New Delhi.

 Notification No. 6/2007

New Delhi, 30th May, 2017

Subject: Declaration in Form 15G-15H to be furnished to the Deductor/Payer for each Financial Year Clarifications -reg

The provisions of section 197A of the Income-tax Act, 1961(‘the Act’) inter alia provide that tax shall not be deducted, if the recipient of certain payment on which tax is deductible furnishes to the payer a self-declarati on in Form No.15G/15H in accordance with provisions of the said section. The manner of filin g such declarations and the particulars have been laid down in Rule 29C of the Income-tax Rul es, 1962 (‘the Rules’) w.e.f 1.10.2015 vide Notification No.76/2015 dated 29.09.2015.

2. Representations have been received for clarification on the issue as to whether a depositor should submit only one declaration in respect of the income each year before each person responsible for making the payment (Deductor) or Form 15G/ 15 H has to be submit ted each and every time the payment is due to be received from the deductor. A view has been expressed in certain quarter s that it will be suff icient if only one declaration is made in respect of the income each year before each person responsible for making the payment drawing the basis from Circular: 351, dated 26-11-1982. Para 5 of this circular is quoted as follows:

“The declaration in Form No. 15F, 15G or 15H as explained above is to be furnished to the person responsible for paying the income which is sought to be received  without  deduction  of  tax  at source. As the declarant has to  state  that  his  estimated  total  income  of’the  previous  year  in which the income of the nature referred to in section 193, 194 or 194A is to be  included  in computing his total income is below the exemption  limitit  will  be  sufficient  if  only  one declaration is made in respect of the income each year  be fo re  each  person  responsible  for making the payment. He nce, where payments  are  to  be  made by the  same  person  more  than once in a  year, the  declaration in the  relevant  form may  be furnished  before the  first  payment in a year becomes due. It may also be noted  that in the  declaration in  Form  No. 15 F, 15G  or 15H part iculars of only such securities, shares or, as the case may be, other  deposits  are  to  be furnished the income  from which is  payable by the  person  to  whom the  declaration is furnished. For ex am ple, in the declaration in Form No. 15G furnished to company ‘A’ it is not necessary  for the  declarant to give particulars of the shares held by him in other companies.

3. A holistic reading of the Circular provides that when the income for  each  year  changes,  new form 15G/15H has to be filed. A similar position is taken up in notification No. 76/2015 dated 29-09-2015 vide guidance note 6,7 and 8 and new column 17, 18, and 19 in form 15G and guidance note 5,6 and 7 and new column 16, 17, and 18 in form 15H. Thus, whenever the estimated total income/ aggregate  income changes and new investments are made, one needs to file new form 15G/15H providing particulars of  the same. However, in case of old investments he needs to provide total number of earlier declarations filed in form 15G/15H and aggregate amount of  income for which such Form 15G/15H have been filed.

4. Therefore, it is hereby clarified that the amended new forms 15G & 15H vide CBDT Notification No 76 dated 29thSeptember, 2015 require the depositor to furnish the details of all investments up to that date including the current Fixed Deposit for which the Form 15G/15H is being given and which are to be listed in Form 15G/15H to enable the deductor/payer to ascertain, whether the Form 15G/15H can be accepted.

5. This issues with the approval of the Principal Director General of Income-t ax (Syst ems).

(P. S. Thuingaleng)
Dy. Commissioner of Income Tax (CPC
TDS)
O/o   The Pr. Director General of  Income
-ta x (Systems)

 Copy to:

  1. PPS to the Chairman and all Members, CBDT, North Block New Delhi
  2. All Chief Commissioners/ Pr. Director Genera ls of Income-tax/ Chief Commissioners of Income-tax /Pr. Commissioners of Income-t ax/ Commissioner-s of  Income-t ax /  Commissioners of lncome-tax(TDS) – with a request to circulate amongst all offi cers in their regions/ charges.
  3. JS(TPL)-I&II / Media coordinator and Off icial spokesperson of CBDT
  4. ADG(IT)/ADG(Audit)/ ADG(Vi)/ ADG(Systems) 1,2 ,3,4,5 / ADG(TPS) 1, 2/CIT(CPC-ITR)/ Bangalore, CIT(CPC-TDS) Ghaziabad
  5. ADG (PR, PP &OL) with a request for advertisement campaign for the notification
  6. TPL and ITA Divisions of CBDT
  7. The In stituti on of Chartered Accountant of India,IP Estate, New Delhi
  8. The Web Manager, ‘incometaxindia.gov.in’ for hosting on the website
  9. Database cell for uploading on irsoff icersonline.gov.in and in DGIT(Systems) corner.
  10. ITBApubli sher for uploading on ITBA Portal
  11. ITO {CPC-TDS)-III for uploading on TRACES portal

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