CBDT Prescribes Revised Simplified Procedure for Online Submission / e Filing of Form 15G/ 15H (Declaration forms for persons claiming receipt of certain incomes without deduction of tax)
A. CBDT Amends Rule 29C and Form 15G/ 15H for Simplification of submission procedure
Section 197A of the Income tax Act provides for no deduction in certain case by submitting a declaration using Form 15G / 15H as laid down in Rule 29C of the Income tax Rules. The manner of filing such declaration and the particulars have been laid down in Rule 29C. The amended Rule 29C, w.e.f. 1st Oct. 2015, provides for online filing of self-declaration for non-deduction of tax under section 197A, in addition to paper filing.
The person responsible for paying any income of the nature referred to in sub section (1) or sub section (1A) or sub section (1C) of section 197A (hereinafter called “payer”) shall enable the payee to furnish the declaration in electronic form after due verification through an electronic process. The declarant shall mandatorily quote his / her PAN in the declaration form 15G / 15H in accordance with the provisions of section 206AA(2).
A unique identification number shall be allotted to declaration (paper /electronic). The payer shall digitize the paper declaration and upload all declarations (including electronic declaration and digitized declaration) received during a particular quarter at department’s efiling website on quarterly basis. Further, clause 5 of rule 29C provides that the payer shall also furnish transactions covered under 15G / 15H declarations in quarterly TDS statement in accordance with the provisions of clause (vii) of sub rule (4) of rule 31A irrespective of the fact that no tax has been deducted in the said quarter.
In this regard, Notification No.76/ 2015 dated 29.09.2015 has been issued for E-enablement & simplification of procedure for filing self-declaration (Form No.15G/15H) and furnishing of such declaration to the Income-tax Department. Further, Notification No. 4/2015 dated 1st December, 2015 to prescribes the procedure, formats and standards.
B. Procedure for Submission or e filing of Form 15G/15H
In exercise of the powers delegated by the CBDT under sub-rule (7) of rule 29C of the Income-tax Rules, 1962, the Principal Director General of Income-tax (Systems) has laid down the procedures, vide Notification No. 7/2016 dt. 4 May 2016 for submission of Declaration by a person claiming receipt of income without TDS using Form 15G /H, as under:
a. Registration: The deductor/collector is required to register by logging in to the e-filing website of the Income Tax Department. To file the “Statement of Form 15G/15H”, deductor should hold a valid TAN. Following path is to be used for the registration process:
Register yourself → Tax Deductor & Collector
b. Preparation: The prescribed schema for Form 15G/15H and utility to prepare XML file can be downloaded from the e-filing website home page under forms (other than ITR) tab. The Form 15G/15H utility can be used to prepare the xml zip file. The declaration is required to be submitted using a Digital Signature Certificate. The signature file for the zipped file can be generated using the DSC Management Utility (available under Downloads in the e-Filing website)
c. Submission: The designated person is required to login to the e-filing website using TAN and go to e-File → Upload Form 15G/15H. The designated person is required to upload the “Zip” file along with the signature file (generated as explained in para (b) above). Once uploaded, the status of the statement shall be shown as “Uploaded”. The uploaded file shall be processed and validated at the e-filing portal (list of validations are given in the user manual). Upon validation, the status shall be either “Accepted” or “Rejected which will reflect within 24 hours from the time of upload. The status of uploaded file will be visible at My account → View Form 15G/15H. In case the submitted file is “Rejected”, the reason for rejection shall be displayed and the corrected statement can be uploaded again.
C. Relaxation by CBDT for Furnishing of UID in TDS Returns for q/e 31st December 2015 and 31st March 2016
CBDT has received representations that due to operational constraints, the Form 15G/15H and the details thereof could not be included in the quarterly statement for the quarter ending 31.12.2015 and 31.3.2016, therefore taking into account the concerns of the stakeholders, the CBDT, vide Circular No. 18/2016 dt 23 May 2016, has relaxed the condition of furnishing of Unique identification number allotted by the deductor for the quarter ending 31.12.2015 and 31.3.2016 in the quarterly statement of deduction of tax in accordance with sub-rule (5) of Rule 29C. 2523159
D. Simplification of Procedure for submission of Form 15G/15H- CBDT Clarifications
The CBDT vide Notification No. 9/2016 dt. 9th June, 2016 has clarified about the due date for quarterly uploading of 15G/H declarations by payers on e-filing portal & the manner for dealing with Form 15G/15H received by payer during the period from 1.10.2015 to 31.3.2016, as under:
The existing 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-declaration in Form No.15G/15H in accordance with provisions of the said section. The manner of filing such declarations and the particulars have been laid down in Rule 29C of the Income-tax Rules, 1962 (`the Rules’) w.e.f 1.10.2015 vide Notification No.76/2015 dated 29.09.2015.
2. As per sub-rule (7) and (8) of rule 29C of the Rules notified vide aforesaid notification, the Principal Director General of Income-tax (Systems) is required to specify the procedures, formats and standards for the purposes of furnishing and verification of the declaration and allotment of unique identification number. In pursuance of the same, Principal Director General of Income-tax (Systems) has issued Notification No. 4/2015 dated 1st December, 2015 to notify the procedure, formats and standards.
3. Representations have been received for clarification on the following issues:
(a) Due date for quarterly uploading of 15G/H declarations by payers on e-filing portal,
(b) The manner for dealing with Form 15G/15H received by payer during the period from 1.10.2015 to 31.3.2016.
4. In this regard, it is hereby specified that:
a) The due date for quarterly furnishing of 15G/15H declarations received by the payer from 1.4.2016 onwards shall be as given below:
Date of ending of the quarter of the financial year
|30th June||15th July of the financial year|
|30th September||15th October of the financial year|
|31st December||15th January of the financial year|
30th April of the financial year immediately following the financial year in which declaration is made.
(b) The payer shall furnish 15G/15H declarations received during the period from 1.10.2015 to 31.3.2016 on e-filing portal in the given format on or before 30th June, 2016.