The CBDT has simplified the procedure for filing of self declaration by individuals in 15G and 15H forms, allowing them to do it electronically.
Forms 15G and 15H are filed by persons whose incomes are below the taxable threshold, to seek exemption from TDS on interest income.
The procedure for submission of the forms by the deductor has also been simplified and now they would allot a Unique Identification Number (UIN) to all self-declarations, according to a Central Board of Direct Taxes (CBDT) notification.
The revised procedure shall be effective from October 1, 2015.
In order to reduce the cost of compliance and ease the compliance burden for both, the tax payer and the tax deductor, the CBDT has simplified the format and procedure for self declaration of Form No 15G or 15H.
The particulars of self declarations would have to be furnished by the deductor along with UIN in the quarterly TDS statements.
The requirement of submitting physical copy of Form 15G and 15H by the deductor to the Income Tax authorities has been dispensed with. The deductor will, however, be required to retain Form No 15G and 15H for seven years.
While Form 15H is submitted by senior citizens, 15G can be filed by an individual whose taxable income is less than the exemption threshold.
To view the notification issued by income tax department, click here