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Form 15g/15h accepted but not furnished to dept.

14 October 2015

Fact of the case

1) assessee has received the duly filled form 15G/15H at the beginning of the year but same has not been furnished to the income tax department till date.

2) however issuer of form 15G/15H has furnished return of income and paid the tax due there on.

3)Is assessee is liable to any penalty as assessing officer is asking for the justification.

Please share your view on this

Thanks & Regard.

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6 Replies

Miss Rinkal (Student) (1309 Points)
Replied 14 October 2015

I am not able to understand your question.

If 15g/h was already submitted then no tds will be deducted and required to be paid. Then where is the point of paying tax.

Secondly if the 15g/h is not submitted to ito, then tds must have deducted on same. Because if it is not submitted means the procedure is incomplete. Hence presumed to be not filled 15g/h form

Kindly put your question properly so that it can be answered properly

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Rajesh Kumar Gupta (Senior Divisional Manager) (714 Points)
Replied 14 October 2015

This year CBDT has allowed furnishing of form 15 G/H online. This will mitigate hardships to some extent. In your case communication is not clear and complete.

kiran chhabhaiya (article) (79 Points)
Replied 14 October 2015

Thanks for early Reply

I am extending my regrate for incoveniance that your have faced

1) Deductor has not furniched form 15G/15H to the department and also not deducted tax at source during the relevant financial year on interest payment so made during the year.

2) howerer Receipient of Interest has furnished their return of income taking into consideration interest income and also paid tax due there on to the Goverenment

3) Having considereing the above fact Payer of the Interest still liable for non deduction of TDS on the same

please share your views

i am gratfurl to have your words on abve fact of the case

CA-AK (CA) (600 Points)
Replied 14 October 2015

There will be 2 situations

If payee has given 15G/H , he might not be having taxable income.

If income is taxable-:In this case Payer of Interest(Bank) shall not be considered assessee in default as payee is resident. He is required to take certificate from CA that assesse has paid tax on Interest Income. Howvere payer shall be liable for interest loss.

Miss Rinkal (Student) (1309 Points)
Replied 14 October 2015

OK now understood your question partly

It is possible that tds may not be deducted because the deductor may not be liable for tds provisions. Hence deductor may not have deducted tax at source.

In 3rd point of your first post, has AO asked for justification or was it a query is just not understood clearly from your next post.

Now if deductor is subjected to tds provisions, then he should have submitted the Form 15g/h to the IT dept. And accordingly tax should not be deducted on the same. On the other hand, deductee or recipient of interest will file the return. Also the recipient must have asked for low deduction of tax or must have no tax liability

But if deductor is not subjected to tds provisions, then he will not submit the Form 15g/h to the IT dept. And accordingly tax will not be deducted on the same. On the other hand, deductee or recipient of interest will file the return and pay tax accordingly

Hope I m able to solve your query