The Hindu : Business : Defects in form 15G and 15H

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Monday, Jan 07, 2008
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Defects in form 15G and 15H

In your clarification on Form 15G or 15H in The Hindu dated August 27, 2007, it is stated that 15H form is concessional for individuals aged 65 or more as this form, unlike 15G form, does not carry the restrictive declaration to the effect that the aggregate of eligible incomes will not exceed the maximum amount which is chargeable to income tax (Item No. 4 in 15G form). 1. Can it be interpreted, that there is no ceiling on the aggregate incomes/ amounts liable for tax deduction for senior citizens of the age of 65 or more? 2. In paragraphs 3 and 5 of your clarification, it should be “not exceeding the maximum exemption limit” and not “not exceeding the minimum exemption limit”. 3. Form No. 15H in circulation at present states that the particulars of the amounts are as per the schedule below. But there is no such schedule at all. The one and only schedule is about “investments”. Of course, Form 15G carries this Schedule as “Schedule V”. 4. Item 2 in Form 15H reads as “that my present occupation is....” At 65 and above, many have no occupations at all. 5. Item 3 in this form states “.... and am entitled to a deduction from the amount of income-tax on my total income referred to in section 88B”. Can you please enlighten me on this point regarding Sec. 88B?

As regards the first point made by the reader, the limit for tax deduction for others is inapplicable for senior citizens, but the limit for statutory deduction under Sec. 80-C, for example, is applicable.

The second point made by him is correct.

As for the third point, the omission pointed out in Form 15H, the schedule for withdrawal from NSS alone has been given, because the other schedules as in Form 15G have apparently been considered unnecessary, since there is no ceiling by way of limit for tax deduction at source, so as to require the split up of the different incomes.

The fourth point made is 4 that the Form 15-H contemplates occupation for everyone is really not a defect, since a person without occupation can well fill up the column as nil. As for the last point, reference to Sec. 88B, providing for rebate for seniors citizens, has since been omitted with effect from April 1, 2006 on substitution of this relief by higher exemption limit. The Form has not been updated after this change. Probably, it was considered not necessary, because of the possible understanding that the reference to Sec. 88B is only for the limited purpose of adopting the definition of senior citizen under the section, when it was in vogue.

S. RAJARATNAM

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