SUBMISSION OF FORM 15G/15H FOR LOW/NIL TDS

[manoj gupta]

THANKS FOR THE REPLY, BUT I STILL HAS DOUBT AS SUB SECTION (1A)OF SECTION 197A READS AS UNDER: NOTWITHSTANDING ANYTHING CONTAINED IN SECTION 193 OF SECTION 194A OR SECTION 194K, NO DEDUCTION OF TAX SHALL BE MADE UNDER ANY OF THE SAID SECTIONS IN THE CASE OF A PERSON (NOT BEING A COMPANY OR A FIRM), IF SUCH PERSON FURNISHES TO THE PERSON RESPONSIBLE FOR PAYING ANY INCOME OF THE NATURE REFERRED TO IN SECTION 193 OF SECTION 194A OR SECTION 194K AS THE CASE MAY BE A DECLARATION IN WRITING IN DUPLICATE IN THE PRESCRIBED FORM TO THE EFFECT THAT TAX ON HIS ESTIMATED TOTAL INCOME OF THE PREVIOUS YEAR IN WHICH SUCH INCOME IS TO BE INCLUDED IN COMPUTING HIS TOTAL INCOME WILL BE NIL. AS THE PERSONS WHICH ARE NON ELIGIBLE IN THIS SECTION ARE ONLY COMPANY AND FIRM, DOES IT MEAN THAT A CHARITABLE TRUST REGISTERED UNDER THE SOCIETIES ACT IS ELIGIBLE TO SUBMIT FORM 15G TO BANK FOR NIL/LOW DEDUCTION OF TAX ON INTEREST ON FDR.

[Rama Krishana]

But, you must read section 197(1A) with 197(1B). On the other hand, I agree with your under section 197(1A), only company and firms are disqualified to furnish declaration in form 15G. All other persons can submit declaration in form 15G if the conditions of section 197 are satisfied.

AI Summary

Form 15G eligibility: charitable trusts may furnish a nil-tax declaration to prevent TDS if statutory conditions are satisfied. A person other than a company or firm who furnishes the prescribed written declaration that tax on estimated total income will be nil prevents deduction of tax at source on the specified incomes; charitable trusts not being companies or firms may furnish this declaration to obtain nil or low TDS provided they satisfy the statutory conditions and procedural requirements governing acceptance of such declarations.