Recently, the income tax department has enabled online submission of Form 15G and Form 15H for taxpayers. The announcement came as a big relief to the taxpayers, who have to follow a time-consuming process of submitting physical 15G and 15H forms until now. The new online process will not bring any change to the rules about submission of these forms except that the procedure will become more easy and simplified.
What Are 15G and 15H Forms?
Payments made against certain services or commissions or interest payments, etc. attract tax deduction at source as per the provisions of the Income Tax Act. In such cases, the payer is responsible to deduct the stipulated amount from the total payable amount and deposit the same with the government. The net amount after deduction of such tax is then paid to the recipient.
But, at time, it happens that the recipient’s tax slab is within the exempted range and that he/she is not liable to pay any tax. In such cases, the recipient is required to submit the form 15G or 15H to ensure that tax is not deducted at source by the payer. Individuals in the age group of below 60 years are required to submit Form 15G while those above 60 years of age are required to fill Form 15H.
Earlier individuals were supposed to submit three copies of 15G or 15H, where one copy was meant to be sent to the income tax department, one for acknowledgement and the third one was retained by the payer for records. Also, these copies were required to be submitted to each entity separately, which would eat-up a lot of time for taxpayers. In the absence of any tracking facility, the tax was deducted despite submission of forms, which proved the process to be inefficient.
Now, the new rules have paved way for the online submission of the forms supported by the quick generation of acknowledgement receipt. At the same time, a unique number will be provided to help track the details later on. Unarguably, the new move will free-up more time for the taxpayers to focus on their other goals.