The CBDT has given very good news today. Now onwards tax payer can submit Form 15G 15H Online also. This step will reduce the unnecessary burden for both tax payer and tax deductor. You must be aware that Form 15G and 15H are forms submitted by a person whose income is below the taxable threshold. This form is for claiming exemption from TDS on interest income.
As per current procedure, you need to submit physical signed copy of form 15G and 15H but from Oct 1, 2015, onwards you can submit form 15 and 15H online.
New Simplified Procedure to Submit Form 15G 15H online
- Under the new simplified procedure, a payee can submit this form of self-declaration either in paper form or electronically.
- The deductor will not deduct any tax. New Unique Identification Number (UIN) will be allocated to all these declarations for tracking.
- Detail about where to file this form 15G and 15H will be declared separately.
- Information about this self-declaration needs to be furnished by deductor along with UIN in the quarterly TDS statements.
- The requirement of submitting a physical copy of Form 15G and 15H by the deductor to the income-tax authorities has been waived off.
- The deductor will however, be required to retain Form No.15G and 15H for seven years.
- This new procedure come into force on the 1st day of October 2015
New System Form 15G and 15H Online – Benefits
- You need not submit the physical copy of 15G or 15H.
- Easy submission of form 15G or 15H anytime anywhere Online.
- Tracking of 15G and 15H self-declaration will be very easy due to an introduction of UIN.
- Data gathered in soft format will help government to analyze the correctness of the information given by payer.
- The new system will help tax deductor they need to submit the physical copy or 15G and 15H.
- This is one step towards Digital India Initiative.
You can read CBDT Notification from here.