11/10/2014

File Form 15G-15H details in ETDS return Form 26Q

As per Income tax rules/Act Deductor is required to file form 15G /15H in ETDS return form 26Q. TDS CPC has issued advisory to banks to file details of 15G/15H forms as this form has been submitted mostly by depositors in Banks. However these rules are also applicable to other deductors also to whom form 15H/15G have been submitted by depositors. 

Two cpc communication in this regards has been given as under for your ready reference.

As you may be aware that the depositors submit form 15G/H to the bank for no deduction of tax to be made on the interest payments made to them. As per rule 31A (4) of Income Tax Rules read with section 200 of Income Tax Act, the referenced 15G/H transactions are required to be reported by raising Flag "B" in relevant TDS Statements (Form 26Q). 

However, CPC(TDS) has observed from its records that you have not raised Flag 'B' for No deduction on account of 15G/H even against a single transaction as reported in the TDS Statement(s) submitted for various quarters of Financial Year 2013-14.

It is highly improbable that not even a single depositor has submitted form 15G/H to you for non-deduction of tax on the interest payments. Accordingly, you are advised to take the following action:

Actions to be taken:

Since the due date of filing Q2 2014 TDS Statements (October 15) is approaching fast, you are requested to check the details of 15G/H transactions from your source data and raise Flag "B" in the Original TDS Statements.
Please submit Correction Statements for previous Quarterly TDS Statements by taking following actions:
Prepare the correction statement with appropriate changes.
Please ensure that the TDS Deposited amount equals the TDS Deducted amount in your correction statement. Submit the Correction Statement at TIN Facilitation Centre.
To,
(Bank Name)
(PAN:XXXXXXXXXX),

Dear Sir/ Madam,

Please refer the subject mentioned above.

1) In this regard, it is to inform you that ________ branches out of ________ active branches of your bank have not reported transaction of payment of interest on which tax was not deducted in view of declaration of 15G or 15H form by the payee. We are also sending a separate communication to the non-compliant branches, attached in the list.

2) __________ branches have in all reported __________ transactions involving declaration of 15G or 15H. The amount involved in such transactions is to the tune of Rs. _______ Crore for F.Y. 2013-14. Form 15G/15H can be submitted by the payee only if the income including the interest income is less than the taxable amount.

3) You are requested to reconcile the amount of Rs. ______ Crore reported by your bank branches with the interest amount paid to payees who declared 15G or 15H as per core banking solution of your bank. In case of discrepancy, it is requested that the relevant branches may be instructed on top priority to comply to the provisions of Income tax act in respect of complete & correct reporting of transactions involving 15G or 15H declaration.

·         Since the due date of filing Q2 2014 TDS Statements (October 15) is approaching fast, you are requested to ensure the details of 15G/H transactions from your source data and raise Flag "B" in the Original TDS Statements. Also, please ensure submission of Correction Statements for previous Quarterly TDS Statements of the branches.

·         CPC (TDS) is committed to provide best possible services to you.

·         CPC (TDS) TEAM

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