The role of the Company Secretaries as governance enablers in the Indian corporate scenario has been well acknowledged, both by the corporates and the Regulators. Company Secretaries, both in employment and in practice have distinct roles to play as far as the governance framework of the Indian corporate arena is concerned.
The ICSI has been upfront about bringing about good governance and strengthening the existing framework. In an attempt to imbibe and to reinstate our commitment towards our vision and mission and to bring about a culture of transparency and accountability amongst our members, the Institute has brought forth the ICSI UDIN and eCSIN Guidelines.
UDIN - Unique Document Identification Number (UDIN), as the name suggests, is an identification number that is generated for every document certified/attested by a Practicing Chartered Accountants.
eCSin - The Employee Company Secretary Identification Number as governed by the eCSin Guidelines shall enable the Institute to identify the appointments and cessations of Company Secretaries. eCSin is a system-generated unique number for identification of the Company Secretaries employed in a particular company which shall be generated by the Company Secretary at the time of employment as a Company Secretary (KMP or otherwise), as well as at the time of demitting office in any manner.
Queries regarding eCSin may be sent to firstname.lastname@example.org
Both the Guidelines have been made mandatory by the Council of ICSI w.e.f. 1st October, 2019 and we are confident that the same shall undeniably provide the benefit of verification of the authenticity of both documents and the professionals to the Regulatory Bodies and other stakeholders as well.
Section 194N is applicable in case of cash withdrawals of more than Rs 1 crore during a financial year. This section will apply to all the sum of money or an aggregate of sums withdrawn from a particular payer in a financial year.
The section will apply to withdrawals made by any taxpayer including:
A Hindu Undivided Family (HUF)
A partnership firm or an LLP
A local authority
An Association of Person (AOPs) or Body of Individuals (BOIs)
The following payers are covered under this section:
Any bank (private or public sector)
A co-operative bank
A post office
The tax will be deducted by the payer while making payment to any individual in cash from a taxpayer’s bank account on the amount in excess of Rs 1 crore.
The limit of Rs 1 crore will be applicable to the cash payments/withdrawals made during the FY 2019-20. The provisions of Section 194N will be applied to the payments made on or after 1 September 2019.
The person (payer) making the cash payment will have to deduct TDS under Section 194N. Here is the list of such persons:
Any bank (private or public sector)
A co-operative bank
A post office
There are certain categories of person (payee) to whom the provision of this section will not apply. They are listed below:
Any government body
Any bank including co-operative banks
Any business correspondent of a banking company
Any white label ATM operator of any bank
TDS will be deducted by the payer while making the cash payment over and above Rs 1 crore in a financial year to the payee. If the payee withdraws a sum of money on regular intervals, the payer will have to deduct TDS from the amount, once the total sum withdrawn exceeds Rs 1 crore in a financial year. Further, the TDS will be done on the amount exceeding Rs 1 crore. For example, if a person withdraws Rs 99 lakh in the aggregate in the financial year and in the next withdrawal, an amount of Rs 1,50,000 is withdrawn, the TDS liability is only on the excess amount of Rs 50,000.
The payer will have to deduct TDS at the rate of 2% on the cash payments/withdrawals of more than Rs 1 crore in a financial year under Section 194N. Thus, in the above example, TDS would be on Rs 50,000 at 2% i.e. Rs 1,000.
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What is form 15G?
Form 15G or 15H has to be submitted by fixed deposit holders at the start of a financial year to the relevant financial entity like a bank. This is done to avoid on the interest income earned.
Who can submit form 15G?
Banks usually deduct TDS from the interest income on FDs if it crosses the threshold limit.
Form 15G is submitted by a resident individual whose age is below 60 years of age during the year as mentioned in the form.
Form 15H is submitted by a resident individual whose age is 60 years and above, that is, senior citizens and super senior citizens.
Conditions to fulfill before submitting Form 15G
One must fulfill the following eligibility criteria to submit Form 15G:
You are an individual or a person (other than a company or a firm).
You must be a resident Indian for the applicable FY
Your age should not be more than 60 years
Tax liability calculated on the total taxable income for the FY is zero
Your total interest income for the financial year is less than the basic exemption limit.
Instructions to fill out Form 15G
Form 15G has two sections. First part is for the individual who wants to claim no-deduction of TDS on certain incomes. The following are the key details you need to fill out in the first portion of Form 15G:
Name as mentioned on your PAN Card.
Permanent Account Number. Valid PAN card is mandatory to file Form 15G. If you fail to furnish valid PAN details, your declaration will be treated as invalid.
Declaration in Form 15G can be furnished by an individual but not by a firm or company.
The previous year has to be selected as the financial year for which you are claiming non-deduction of TDS.
Mention your residential status as a resident individual because NRI are not allowed to submit Form 15G.
Mention your communication address correctly along with PIN code.
Provide valid email ID and contact number for further communications.
Tick mark ‘’Yes’’, if you were assessed to tax under the provisions of Income Tax Act, 1961 for any of the previous assessment years.
Mention the latest assessment year for which your returns were assessed.
Estimated income for which you are making declaration needs to be mentioned
Total estimated income for the financial year (which includes all the income)
If you have already filed Form 15G anytime during the financial year, then the details of the previous declaration along with an aggregate amount of income need to be mentioned in the present declaration.
Last part of section 1 talks about the investment details for which you are filing declaration. You need to furnish the investment account number (term deposit/ life insurance policy number/ employee code etc)
After filling the entire field, re-check all the details to ensure there is no error. The second part of Form 15G is to be filled out by the deductor i.e. the person who is going to deposit the tax deducted at source to the government on behalf of the tax assessee.
What if I forget to submit Form 15G?
In case you forget to submit Form 15G on time and TDS has already been deducted, here’s what you can do:
Option 1: Claim your TDS refund by filing income tax return.
Option 2: Immediately submit Form 15G to avoid further deductions for the current financial year.
Penalty for Submitting False Declaration using Form 15G
Providing a false declaration in Form 15G just to avoid TDS can lead to fine and even imprisonment under Section 277 of the Income Tax Act, 1961. The following are the details of punishments u/s 277 of the IT Act, 1961.
Imprisonment for a period of 6 months to 7 years if the wrong declaration was provided to evade tax of more than Rs. 1 lakh
For all other cases, imprisonment between 3 months to 3 years.