Revised Procedure for Submission of Form 15G/ 15H along with CBDT Clarifications

CBDT has simplified/revised the procedure for e-filing of Form 15G/ 15H (declaration forms for no TDS) and clarified the due dates for quarterly submission by payer and annual submission by recipient.

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. 01/10/2015, 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 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 4/2015 dated 01/12/2015 to prescribes the procedure, formats and standards.

CBDT Income Tax Notification 76/2015 dt. 29/09/2015: CBDT Amends Rule 29C and Form 15G/ 15H

CBDT Income Tax Notification 4/2015 dt. 01/12/2015: Simplification of Procedure for Form 15G and 15H

B. Procedure for Submission/ e-filing of Declaration 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 7/2016 dt. 04/05/2016 for submission of Declaration by a person claiming receipt of income without TDS using Form 15G/ 15H, 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.

CBDT Income Tax Notification 7/2016 DIT Systems dt. 04/05/2016: Procedure for e filing of Forms 15G/ 15H

C. Relaxation by CBDT for Furnishing of UID in TDS Returns for the q/e 31/12/2015 and 31/03/2016

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 31/03/2016, therefore taking into account the concerns of the stakeholders, the CBDT, vide Circular 18/2016 dt 23/05/2016, has relaxed the condition of furnishing of Unique identification number allotted by the deductor for the quarter ending 31/12/2015 and 31/03/2016 in the quarterly statement of deduction of tax in accordance with sub-rule (5) of Rule 29C.

CBDT Income Tax Circular 18/2016 dt 23/05/2016: Relaxation for Furnishing of UID in TDS Returns

D. CBDT Clarifications on Due Date for Submission of Form 15G/ 15H

The CBDT vide Notification 9/2016 dt. 09/06/2016 has clarified that the due date for submission/ uploading of Form 15G/ 15H declarations by payers on e-filing portal in the  given format is on or before 30/06/2016.

Further, the CBDT has clarified that the due date for quarterly e-filing/ furnishing of declarations in Form 15G/ 15H, as received by the payer, from 01/04/2016 onwards, shall be as given below:

Quarter Ending	Due Date
30-Jun	15-Jul
30-Sep	15-Oct
31-Dec	15-Jan
31-Mar	30-Apr

CBDT Income Tax Notification 9/2016 dt 09/06/2016: Simplification of Procedure- 15G & 15H

E. CBDT Clarifications on Annual Submission of Self Declaration Form 15G/ 15H by the Recipient

The CBDT has clarified that the recipient has to submit the self declarations in Form 15G/ 15H to the payer/ deductor on annual basis, for each financial year, instead of submission of the same for each transaction.

CBDT Income Tax Notification 6/2017 dt. 30/05/2017: Single Form 15G/ 15H Declaration by Recipient for each Financial Year