Government has simplified the format and procedures for income tax returns filing format that applies to self-declaration forms (form No. 15G or 15H). This change in income tax format has been done to reduce the cost of compliance and ease the burden for both the tax payer and the tax deductor. Here are top 10 facts to know:
1. The requirement of submitting physical copy of Form 15G and 15H by the deductor to the Income-Tax Department authorities has been dispensed with.
2. The payee can submit the self-declaration form either on a paper or electronically.
3. Tax payers seeking non-deduction of tax from certain incomes are required to file a self declaration through Form No. 15G or Form No.15H as per the provisions of Section 197A of the Income-tax Act, 1961 (‘the Act’).
4. The particulars of self-declarations will have to be furnished by the deductor along with UIN in the Quarterly TDS statements.
5. Deductor will not deduct income tax and will allot a unique identification number (UIN) to all self-declarations in accordance with a well laid down procedure to be specified separately.
6. The deductor will be required to retain Form No.15G and 15H for seven years.
7. The revised income tax procedure shall be effective from October 1, 2015.