Whether a trust can submit Form 15G to bank for non deduction of TDS. Please give reference of Section or other material as the bank is not accepting it.
Section 197(1A) is very clear and Trust can submit Form 15G to the Bank for non Deduction of TDS . Only company and partnership firms has been prohibited from submitting Form 15G /15H. [ Download Form 15G :Declaration under Section 197 of Income tax ]
Form 15G Heading is ” 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 “
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 read as follow
1[(1A) Notwithstanding anything contained in 2[section 192A or] 3[section 193 or] section 194A 4[or section 194DA] 5[or section 194-I] or 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-I] or 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.]
1. Substituted by the Finance Act, 1995, w.e.f. 1-7-1995. Earlier sub-section (1A) was inserted by the Finance Act, 1992, w.e.f. 1-6-1992.