File correct details in TDS return in respect of Form 15G/ 15H

Sometimes it has been observed that Flag B is not being raised for 15G/ H Forms in quarterly TDS Statements filed.

The prevalent practice is to raise the flag only in the TDS Statements filed in the last quarter of the Financial Year, however, such transactions must be reported within the relevant quarter.

The obligation to report each transaction in the relevant quarter, where tax has not been deducted on the basis of 15G/ H Forms, falls on the deductor and non-compliance amounts to incorrect verification of completeness of TDS statement.

Form 15G/H and its relevance:

Under section 197A of the Income Tax Act 1961, Form 15G/ H is a self-declaration, which is provided by a person resident in India (not being a Company or Firm) to their deductor that the tax on his estimated total income of the previous year, in which such income is to be included in computing his total income, will be NIL. The Declaration in writing should be collected by the deductor in Duplicate.

The Declaration can be made in the following Forms:

a. Form 15H-For Senior Citizens

b. Form 15G-For other than Senior Citizens

Such declaration under section 197A can be made only for tax deductions under section 192, 193, 194, 194A, 194C, 194D, 194G, 194H, 194I, 194J, 194K, 194LA and 195.

How to show Forms 15G/ H details in TDS statements:

If the deductee provides Forms 15G or 15H to their deductor, then deductor is not liable to deduct tax at the time of payment/ credits and needs to raise Flag B .

The person responsible for paying any income of the nature shall deliver or cause to be delivered to the Chief Commissioner or Commissioner, a copy of the declaration, on or before the seventh day of the month next following the month in which the declaration is furnished to him.

Consequences, if deductor does not raise Flag B:

If the deductor does not raise Flag B in case of non-deduction, the rate of tax as per the relevant section under the Act will become applicable and a Short Deduction default will be raised.

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11 thoughts on “File correct details in TDS return in respect of Form 15G/ 15H

  1. nimish shah

    but in RPU when Flag B is used it ask for Lower TDS certificate number, which would not be there if deductee provides Forms 15G or 15H to their deductor as Under section 197A of the Income Tax Act 1961, Form 15G/ H is a self-declaration, which is provided by a person resident in India (not being a Company or Firm) to their deductor that the tax on his estimated total income of the previous year, in which such income is to be included in computing his total income, will be NIL. The Declaration in writing should be collected by the deductor in Duplicate.So please let us know how to present details for Forms 15G or 15H in TDS return.

    Reply
    1. Rajesh Kothari

      RPU has to be updated. Once you raise flag ‘B’ it will never ask certificate number. Only if you raise flat ‘A” it will ask so.

      Reply
  2. AMIT S

    The obligation to report each transaction in the relevant quarter.

    but what if there are no other entries in that quarter and hence no paid challan. How to prepare such return when there are no challan.

    Reply
  3. REMYA MAHESH

    Dear Sir,

    While revising TDS return related to 15g/h & 20 % TDS deducted cases through tds RPU 1.3, an error file is generated stating “thatT-FV-4252 Date on which tax deducted should be null for No deduction/lower deduction¢ as ‘B'”. But we can neither edit the challan date ( booked challan) nor add new challan with nil TDS. So please reply how can we solve this issue?

    Reply
  4. REMYA MAHESH

    Dear Sir,

    While revising TDS return related to 15g/h & 20 % TDS deducted cases through tds RPU 1.3, an error file is generated stating thatT-FV-4252 Date on which tax deducted should be null for No deduction/lower deduction¢ as B’. But we can neither edit the challan date ( booked challan) nor add new challan with nil TDS. So please reply how can we solve this issue?

    Reply
  5. KESHVI THACKER

    Sir,
    SINCE WE HAVE TO RAISE FLAG B IN RPU FOR 15 G AND H , BUT WHERE DO WE PROVIDE UNIQUE IDENTIFICATION NUMBER WHICH DEDUCTOR HAS ALLOTED TO DEDUCTEE IN TDS RETURN FILING STATEMENTS……

    Reply
    1. CA. Heman Shukla

      Yes, Other than filing 15G/H return online,
      We have to mention details of all 15G/H in the TDS statement for the relevant quarter
      and file it Online or at Tin Centre.

      Reply
    2. CA. Hemant Shukla

      Yes, Other than filing 15G/H return online,
      We have to mention details of all 15G/H in the TDS statement for the relevant quarter
      and file it Online or at Tin Centre.

      Reply
  6. Lalit Mangtani

    T-FV-4252 Date on which tax deducted should be null for ‘No deduction/lower deduction’ as ‘B’

    Reply

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