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.

AI Summary

Charitable Trusts Eligible to Submit Form 15G for Low Tax Deduction on Interest, per Section 197A(1A) Guidelines. A user inquired about the eligibility of a charitable trust registered under the Societies Act to submit Form 15G for low or nil tax deduction on interest from fixed deposits. They referenced sub-section (1A) of Section 197A, which exempts individuals, except companies and firms, from tax deduction if a declaration is submitted. The response clarified that while companies and firms are disqualified, other entities, including charitable trusts, may submit Form 15G if they meet the conditions outlined in Section 197.