In order to
reduce the cost of compliance and ease the compliance burden for both, the tax
payer and the tax deductor, the Central Board of Direct Taxes (CBDT) issued simplified
format and procedure for self declaration in Form No.15G or 15H as per the
provisions of Section 197A of the Income-tax Act, 1961 for non-deduction of tax
from certain incomes.
procedure provides that:
a payee can submit the
self-declaration either in paper form or
the deductor will allot a Unique
Identification Number (UIN) to all self-declarations in accordance with the
laid down procedure and will not deduct tax;
particulars of self-declarations
will have to be furnished by the deductor along with UIN in the Quarterly
the deductor will be required to
retain Form No.15G and 15H for seven years.
The revised simplified
procedure to exempt certain incomes from tax will become effective from 01.10.2015.
-Ministry of Finance
Source: Legal news India