The article explains the rules governing the usage of Forms 15G/15H. It mentions the criteria for filling these forms.
Vaibhav Sankla, director at H&R Block India, states that Individuals who are below the age of 60 or Hindu Undivided Families (HUFs) can submit a declaration through Form 15G if the tax liability on their estimated income for the year is zero. Moreover, the amount of interest income they earn in the particular fiscal year should not exceed the amount of basic exemption (Rs. 2.5 lakh).
Whereas, Form 15H is for senior citizens (above the age of 60). Sankla says that the individual is required to fulfil only one condition i.e. the income tax liability of their estimated taxable income should be zero.
The above mentioned declaration can be submitted by an Indian resident only. NRIs cannot submit this declaration. To be eligible to file a declaration through the forms, you need to register your Permanent Account Number with the TDS deductor.
The article points out that you need to submit declaration forms at the beginning of the financial year, before the bank deducts tax. There is no last date for submission of forms.
Option for withdrawal application form is available in case you need to withdraw the submitted declaration. The Central Board of Direct Taxes has simplified the format of the forms along with the procedure for self-declaration from October 2015. The forms are available in paper as well as electronic formats.
The article also emphasizes on the consequences of wrong filing.
Source : Business Standard