Income tax department have prescribed self-declaration forms to avoid unnecessary TDS. In these form applicant need to give an undertaking that her income is below the threshold limit of income tax and hence exempt from tax. There are two categories of forms for the purpose-Form 15G is for those who are younger than 60 years and form 15H is for those above 60 years of age.
Before you use these forms, make sure your tax liability during the year is expected to be nil or else you may need to pay a penalty. The forms are required to be furnished at the beginning of the year, but if you realise later in the year that your income is expected to be more than what you estimated at the beginning, make sure you pay the tax on the estimated income in the form of advance tax.
In an order dated 3 April, 2020, Central Board of Direct Taxes (CBDT) stated that, “to mitigate the hardships of small taxpayers, it has been decided that if a person had submitted valid Forms 15G and 15H to the banks or other institutions for F.Y. 2019-20, then these Forms would be valid up to 30.06.2020." The aim was to safeguard the small tax payers against TDS where there is no tax liability.
In this video we have explained the provision and procedure to download and submit Form 15G and Form 15H.
Form download Link : www.incometaxindia.gov.in/Pag...
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