Trust is entitled to Submit Form No. 15G To Bank for getting interest without TDS

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Trust is entitled to Submit Form No. 15G To Bank for getting interest without TDS

 –         CA Naresh Jakhotia

One of the common questions with regard to TDS is whether trust is eligible to submit Form 15G to bank for non deduction of TDS.

  It may be noted that Section 197(1A) deals with the issue. It is aptly clear therein that Trust can submit Form 15G to the Bank for non Deduction of TDS.

It’s only the company and partnership firms who have been excluded from the submission of Form No 15G. Firms and company are specifically prohibited from submitting Form 15G /15H.

Even the heading of the Form No. 15G mentions as

” Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax “

 The Form No. 15G are forming the part of Rule NO. 29C which reads as under:

 Rule 29C(1) of Income tax Rules

1) A declaration under sub-section (1) or under sub-section (1A) of section 197A shall be in Form No.15G and declaration under sub-section (1C) of section 197A shall be in Form No.15H.

Section – 197A (1A) of  Income-tax Act, 1961 reads as follow

(1A) Notwithstanding anything contained in  2[section 192A or] 3[section 193 or] section 194A 4[or section 194DA] 5[or section 194-Ior section 194K, no deduction of tax shall be made under 6[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 4[section 192A or] 3[section 193 or] section 194A 4[or section 194DA] 5[or section 194-Ior section 194K, as the case may be, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the 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.]

In short, eligible to submit Form No. 15G as they are not excluded like firm and companies. Without any specific exclusion, there is nothing which prohibits the trust form submission of Form No. 15G.

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