Generation of Form No. 15G, 15H ,60 and 61 through system

Issue – Form No.15G/15H is a form of declaration that has been prescribed for those persons who desire to receive certain specified income without deduction of tax at source. These forms can be used only if the aggregate income of the person making declaration does not exceed the maximum amount not chargeable to tax.

Form No.60/61 are used by persons who do not have a Permanent account number and who have entered into transactions specified under Rule
114B of the Income-tax Rule,1962.

The purpose of existence of these forms is mainly to avoid inconvenience to senior citizens and other persons who’s income chargeable to tax is below the maximum amount not chargeable to tax and those who do not have a PAN. These forms are however being misused, since there is no mechanism to track and control those persons who wrongly fill the form to avoid deduction of tax at source. Today, every branch of a bank collects Form No. 60/61/15G/15H and does not deduct tax at source on FDs having interest below 10,000. This gives a way to the assessee to have FDs in multiple branches with interest below 10000 and escape tax deduction at source by furnishing the relevant form.

Suggestions – Since there is no central system to locate multiple forms 60, 61, 15G and 15H, filled by a particular person, it is suggested that the filing of the same be made electronic. On the basis of particulars received from these form No, the banks should be mandated to punch the said particulars in the e-form which will generate a unique number. The details so furnished may be then used for analyzing and taking action against those persons who have given false declaration to avoid payment of taxes. This system if put in place will ensure genuine usage of these forms.

Source- ICAI Pre-Budget 2014 Memorandum on Direct Taxes

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0 responses to “ICAI suggests Generation of Form No. 15G, 15H ,60 and 61 through system”

  1. s sudarshana says:

    What is the harm in submitting the Form 15, if the income is less than taxable limit?! Senior Citizen should set good example by appreciating the spirit behind Form 15.

  2. CA Sanjay Agarwal says:

    Compulsory filing of Form 15 G/15 H online will definitely add inconvenience to senior citizens and others (with income below taxable limit), while these forms have been introduced to reduce their inconveniences.

  3. s sudarshana says:

    We have advanced over the years from just giving Form 15G/H with PAN in different banks and scope to avoid tax to the present where, once the PAN is given, all the interest from different banks will get reflected in the TRACES.
    Well for those who want to avoid tax, apart from what is stated above by the main article, people do resort to benami names/addresses. Well, answere for that will be AADHAR card linkage, with biometric input.!

  4. s sudarshana says:

    Suggestion is good, on the face of it! This is in absolute contrast with the recent decision of the govt ‘single rank single pension’ policy. Pension is given as per the status/salary drawn by the employee during the service, after retirement also. What is basic minimum requirement for ‘living honourably’ is not same for all! In fact doing away with pension is a good proposition than advocating same pension for all.
    Who ever is planning to get pension after contributing to pension fund, will be getting what is saved by them and nothing else.

  5. P ROY says:

    IDEALY THERE SHOULD NOT BE ANY PENSION PAY FOR RETIRED GOVERNMENT SERVANTS ONLY. TAX IS PAID BY EACH AND EVRY CITIZEN SO IF PENSION AS OLD AGE SU[PORT IS TO BE GIVEN THEN IT SHOULD BE GIVEN ALL CITIZENS AFTER A CERTAIN AGE AND ALL SHOULD BE PAID SAM AMOUNT PER MONTH.

    DIFFERENCE OF SALARY FOR GOVERNMENT SERVANT AT DIFFERENT POSTS ARE BASED ON DIFFERENCE IN EDUCATIONAL QUALIFICATION AND TYPE OF SERVICE PROVIDED BY AN EMPLOYEE DURING HIS/HER SERVICE. AFTER RETIREMENT, ALL MUST BE TREATED SAME FOR PENSION PAY FOR OLD AGE SUPPORT.

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