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Form 15G

Sanjay (CA Final n CS Final) (324 Points)

30 October 2009

(1) what is form 15G?

(2)Can it be used by an assessee to avoid TDS deduction on FDR Interest payable by Bank?

(3)If Yes, then what are its requirements?

Thank u all.

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4 Replies

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14487 Points)
Replied 30 October 2009

FORM NO. 15G

[
See rule 29C(2)]
Declaration under section 197A(1) of the Income-tax Act, 1961, to be made

by an individual claiming receipt of dividend

without deduction of tax

I, ......................… … … … … … … … … .. son/daughter/wife of. .......................… … … … … resident

of… … … … … … … ................... @ do hereby declare—

1.
that I am a shareholder in...............… … … … … … … … … … … … (name and address of the company);
2.

beneficially owned by me, and the dividends therefrom are not includible in the total income of any

other person under sections 60 to 64 of the Income-tax Act, 1961:

No. of shares Class of shares Total face value Distinctive Date

and face of shares numbers of the shares were

value of the shares acquired by

each share the declarant
that the shares in the said company, particulars of which are given below, stand in my name and are(s) on which
3.
that my present occupation is ................… … … … … … ..;
4.

paragraph 2 above, computed in accordance with the provisions of the Income-tax Act, 1961, for the

previous year ending on.................. relevant to the assessment year .......- ..... will be
that the tax on my estimated total income, including the dividends from the shares referred to innil;
5.

the Chief Commissioner or Commissioner of Income-tax, ................;

OR

that I was last assessed to income-tax for the assessment year ....... … ....... by the Assessing Officer

...................… … .·Circle/Ward/District and the permanent account number allotted to me

is...................… … ..;
*that I have not been assessed to income-tax at any time in the past but I fall within the jurisdiction of
6.
that I am resident in India within the meaning of section 6 of the Income-tax Act, 1961.
……………………………

Signature
of the declarant
Verification

I, ...............… … … … … … … … … … … … … … … do hereby declare that to the best of my knowledge and

belief what is stated above is correct, complete and is truly stated.

Verified today, the ...................day of..............,

Place

Signature
................ ……………………………of the declarant
Notes:

1. @ Give complete postal address.

2. The declaration should be furnished in duplicate.

3. *Delete whichever is not applicable.

4. Before signing the verification. The declarant should satisfy himself that the information furnished in

the declaration is true, correct and complete in all respects. Any person making a false statement in the

declaration shall be liable to prosecution under section 277 of the Income-tax Act. 1961, and on conviction

be punishable—

(

which shall not be less than six months but which may extend to seven years and with fine:

(

which may extend to three years and with fine.

[FOR USE BY THE PERSON TO WHOM THE DECLARATION IS FURNISHED]

1. Name and address of the company

2. Date on which the declaration was furnished by the declarant

3. Date of declaration, distribution or payment of dividends

4. Period in respect of which dividend has been declared

5. Amount of dividend paid

Forwarded to the Chief Commissioner or Commissioner of Income-tax..................
i) in a case where tax sought to he evaded exceeds one lakh rupees, with rigorous imprisonmentii) in any other case, with rigorous imprisonment which shall not be less than three months but
Place
...................... … … … … … … … … … … …
Date

officer of the company
...................... Signature of the principal

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BALU NARAYAN (CHARTERED ACCOUNTANTS) (44 Points)
Replied 30 October 2009

Please note that Form 15 should be issued where income subject to tax is below taxable limits. It cannot be issued, where income is chargeable to tax but where tax is nil due to applicability of Section 80 C, 80 G etc.

Yogesh Shah (Managing Corporate Finance) (1051 Points)
Replied 30 October 2009

Hi Sanjay,

(I guess, your first query must have been solved)

In respect of second question - you can submit Form 15G to Bank to avoid TDS on interest on FDR, if you are sure and able to show to Bank, that your taxable income including such interest is below exemption limit.

(In any way, if your interest income is less than Rs. 10,000/-, Bank will not deduct TDS on that, subject to regulations by Bank)