New Delhi — The government has simplified the format and procedure for self-declaration in form no 15G or 15H to reduce the cost of compliance and ease the burden of compliance for both the taxpayer and the tax deductor. The procedure for submission of the forms by the deductor has been simplified, too.
The payee can now submit the self-declaration either in the paper form or electronically. The deductor will not deduct tax; instead, he will allot a Unique Identification Number (UIN) to all self-declarations in accordance with a well laid down procedure to be specified separately
Taxpayers seeking non-deduction of tax from certain incomes are required to file a self-declaration in Form No. 15G or Form No.15H as per the provisions of Section 197A of the Income-tax Act, 1961. In order to reduce the cost of compliance and ease the compliance burden for both, the taxpayer and the tax deductor, the Central Board of Direct Taxes (CBDT) has simplified the format and procedure for self declaration in Form No.15G or 15H. The procedure for submission of forms by the deductor has also been simplified.
Under the simplified procedure, a payee can submit the self-declaration either in paper form or electronically. The deductor will not deduct tax but will allot a UIN to all self-declarations in accordance with a well laid down procedure to be specified separately.
The particulars of self-declarations will have to be furnished by the deductor along with UIN in the quarterly TDS statements. The requirement of submitting a 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 15G and 15H for seven years.
The revised procedure shall be effective from the 1 October.
The notification, issued vide S.O. No.2663 (E), dated 29 September, is available on the website of the department.