The Centre has said that it has simplified the format and procedure for tax self declaration in form No.15G or 15H to reduce the cost of compliance and ease the compliance burden for both the tax payer and the tax deductor.
A Finance Ministry statement issued today said that the payee can submit the self-declaration either in paper form or electronically.
It also said that the deductor will not deduct tax and will allot a unique identification number (uin) to all self-declarations in accordance with a well laid down procedure to be specified separately.
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The statement further said that tax payers seeking non-deduction of tax from certain incomes are required to file a self declaration in Form No. 15G or Form No.15H as per the provisions of Section 197A of the Income-tax Act, 1961 ('the Act').
The particulars of self-declarations will have to be furnished by the deductor along with UIN in the Quarterly TDS statements.
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The requirement of submitting physical copy of Form 15G and 15H by the deductor to the income-tax authorities has been dispensed with.
The deductor will, however be required to retain Form No.15G and 15H for seven years.
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The revised procedure shall be effective from October 1, 2015.