Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

form no 15h/15g

CA. Rajesh P. Ahir (In Service @ PSU) (687 Points)

04 August 2010

hi,

can you please give me your important view on following

1) Whether form no 15h/15g is valid without PAN Card.

2) If a farmer is submitting Form no 15hor 15g ( he is not having Pan No) can a bank accept it.

3) a person who has submitted form no 15h 15g( without PAN No. What should be rate of TDS (I) normal or (II) 20 % as he is not having pan no.

Reply
Follow
Share

4 Replies

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 04 August 2010

1. No as section 206AA states as under

(2) No declaration under sub-section (1) or sub-section (1A) or sub-section (1C) of section 197A shall be valid unless the person furnishes his Permanent Account Number in such declaration.

Which is in reference to form 15G & 15H

2. No

3. 20% as there is no PAN.

Upgrade to CAclubindia Pro. Subscribe Now!

CA. Rajesh P. Ahir (In Service @ PSU) (687 Points)
Replied 04 August 2010

THANK YOU MR. ADITYA

BUT IN 2 ABOVE WHICH PROVISION OF IT ACT COMPECS A FARMER TO GET PAN. AND WHAT IS LOGIC IN ASKING FOR PAN FROM A PERSON NOT PAYING TAX.

Rishab (A.C.A.) (155 Points)
Replied 04 August 2010

The LOGIC IN ASKING FOR PAN FROM A PERSON NOT PAYING TAX is very simple.

He may have other Incomes which are taxable - in your case the Interest on FD is taxable even to a farmer.

Pan is also necessary for identity of a person, otherwise tomorrow everyone (even a tax payer) will fill the Form 15G/H without PAN (saying he has no PAN), How will the IT authorities identify him without PAN (In PAN they get a breif history and identification of the person so that he may be questioned).

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 04 August 2010

When provisions of Section 206AA does not allow an assessee to issue form 15H / 15G if a valid PAN is not there then how the bank will accept the same. Even if it accepts the same it cannot act upon it and deduct TDS @ 20%.

The main purpose is to increase accountability of payments being by assessees made at large and not restricted to only farmers and to ensure that no income escapes from being taxed as with PAN you can match that the person has so much receipts booked as per TDS and whether the same is reflected in his return of income or not.