Form 15G & Form 15H Can’t Be Accepted Blindly Now ! Rule 29C Changed

The changes in the Income Tax Act as well as Income Tax Rules perhaps is done so fast that the tax payers as well as tax practitioners will really find to grapple with the tax laws. Not long ago (CBDT  vide NOTIFICATION NO. 11/2013/SO 410(E), DATED 19-2-2013) the Form 15G & Form 15H were changed . Now. CBDT has once again changed it vide notification S.O. 2663 (E) dt 29/09/2015 . Now the changed Rule 29C which prescribes rules regarding Form 15G and Form 15H  provides that :

1. The declaration may be furnished in any of the following manners, namely:-

   (a) in paper form;

   (b) electronically

2. The deductor  shall allot a unique identification number to each declaration received by him in Form No.15G and Form No.15H respectively during every quarter of the financial year .
3. The deductor  shall furnish the particulars of declaration received by him during any quarter of the financial year along with the unique identification number allotted by him  in the statement of deduction of tax of the said quarter .
4. The deductor shall furnish the statement of deduction of tax referred to in rule 31A containing the particulars of declaration received by him during each quarter of the financial year along with the unique identification number allotted by him irrespective of the fact that no tax has been deducted in the said quarter.
5. An income-tax authority may require the deductor to furnish or make available the declaration for the purposes of verification or any proceeding under the Act within end of seven years.
6. The Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the declaration, allotment of unique identification number and furnishing

Barred to accept Declaration in Form 15G/ Form 15 H Blindly

While the Rule 29C does not say any thing about it , the Form which is notified along with Rule 29C clearly bars a deductor from accepting a declaration if where the amount of income of the nature referred to in section 197A(1C) or the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to tax.  

Read the foot note of the form 

The person responsible for paying the income referred to in column 15 of Part I shall not accept the declaration where the amount of income of the nature referred to in section 197A(1C) or the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the previous year in which such income is to be included exceeds the maximum amount which is not chargeable to tax after allowing for deduction(s) under Chapter VI-A, if any, or set off of loss, if any, under the head “income from house property” for which the declarant is eligible. For deciding the eligibility, he is required to verify income or the aggregate amount of incomes, as the case may be, reported by the declarant in columns 15 and 17.

What it means is that any attempt at ignorance that once declaration is filed , the responsibility does not lies with the deductor will not work . The Board has made it clear that the deductor should not accept an for that purpose they may verify the income .

Readers are advised to inform their client not to take the declaration easily now !