F.No. Pr.
DGIT(S)/CPC(TDS)/NOTIFICATION/2017-18
Government of India Ministry of
Finance Central Board of Direct Taxes Directorate of Income-tax(Systems) New
Delhi.
Notification No. 6 /2017
41; New Delhi, 30 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-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. 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/15H has to be
submitted each and every time the payment is due to be received from the
deductor. A view has been expressed in certain quarters that it will be
sufficient 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: No. 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
limit, it will be sufficient if only one declaration is made in respect of the
income each year before each person responsible for making the payment. Hence,
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. 15F,
15G or 15H particulars 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 example, 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
29th September, 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-tax (Systems ) Dy. Commissioner of
Income Tax (CPC-TDS) The Pr. Director General of Income-tax (Systems)
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