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form 15g

Form 15G - Understand it better

19 Sep,2019

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.

input tax credit under gst

Admissibility of Input Tax Credit - Motor Vehicles

8 Aug,2019

1. Introduction

Seamless flow of input tax credit was the core purpose of the GST law after subsuming all the indirect taxes. Here, the admissibility of credit on motor vehicles has emerged as the burning issue and still in infant stage §ng there is diversity in the provision of the law and the decision being given by Authority for Advance Rulings.

2. Legal provisions

The relevant provision related to the issue under consideration is as under

 "Section 17 - Apportionment of credit and blocked credits.

(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be Unavailable in respect of the following, namely:

[(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely

1. further supply of such motor vehicles; or

2. transportation of passengers; or

3. imparting training on driving such motor vehicles 

(aa) vessels and aircraft, except when they are used -

1. for making the following taxable supplies, namely

  1. further supply of such vessels or aircraft; or

  2. transportation of passengers; or

  3. imparting training on navigating such vessels; or

  4. imparting training on flying such aircraft;

2. for transportation of goods;

   (ab) services of general insurance, servicing, repair and maintenance in so far as they        relate to motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa):

Provided that the input tax credit in respect of such services shall be available --

  (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein;

  (ii) where received by a taxable person engaged —

  • in the manufacture of such motor vehicles, vessels or aircraft; or

  • in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;"

3. Facts of the case

The assessee was engaged in supplying cabs on rental basis for the purpose of transportation of passengers. It was further submitted that as people take the car on rent for the transportation of 

passengers, therefore, the services though claimed as "rent-a-cab" services but it is closely and essentially associated with transportation of passengers and hence, on reading of the provision as cited above the credit of tax paid on the purchase of motor vehicles is admissible to it

4. Discussion

While discussing the matter, it was stated by the Authority for Advance Rulings that the GST Act has been amended with effect from 1-2- 2019 and before amendment the provisions of section 17(5)(b)(iii) of the Act did not allow credit of GST paid on inputs for supply of rent-a-cab service, except under certain specific conditions that are not applicable in the this case. It ruled out credit of input tax paid on the purchase of motor vehicles used for supply of rent-a-cab service if the transaction was effected before 1-2-2019

It further stated that the amended provisions of section 17(5)(b)(iii) of the GST Act do not contain reference to the rent-a-cab service. However, post-amendment, input tax credit shall not be available in respect of supply of the service of renting or hiring of motor vehicles in terms of section 17(5)(b)(i) of the GST Act, unless the inward and the outward supplies are of the same category, standalone or as an element of a taxable composite or mixed supply. Further, section 17(5)(a) of the Act provides that input tax credit shall not be available on inward supply of motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely - 

1. a further supply of such motor vehicles; or

2. transportation of passengers: or

3. imparting training on driving such motor vehicles.

It was further discussed that "rent-a-cab" is not defined in the GST Act and therefore, the nature of services has to be identified from the invoices and the related facts. The assessee provides cab rental service to various institutions and in no case such services provided to institutions can fall under "passenger transportation services". From the facts, it was further’ inferred that the service receiver has to pay the assessee a certain amount per month as consideration, irrespective of what distance the cab travels in a particular month. Additional amount has to be paid if the cab is retained for extra hours or requisitioned on holidays. For the purpose of covering the cost of fuel, the distance travelled needs to be brought into play, but only if it crosses a certain threshold.

It is, therefore, clear from the above discussion that the nature of the service the assessee provides is classifiable under SAC 9966 as renting of a motor vehicle.

5. Conclusion

In view of-the facts and the legal provisions stated above, it was held by the Authority for Advance Rulings that the credit of GST paid on purchase of motor vehicles or other inputs for the supply of the "rent-a- cab" service is not admissible.

6.Author's views

With due respect, the author of this article differs with the decision passed by the Authority for Advance Rulings in the above-mentioned case. The author wishes to throw light on the provision mentioned in section 17(5)(a)(A) of the CGST Act, 2017, wherein it was said that the credit of tax paid on motor vehicles is admissible where it is used for further supply of such motor vehicle. As the words highlight, it is very clear that the credit of tax paid on motor vehicle is admissible if the same is used in further supply. It is worthwhile to note that the term "supply" has its significance and from reading the meaning of supply as given to it in section 7 of the CGST Act, 2017, it is very widely interpreted to include all sorts of supply, service or sale including renting, leasing, etc.

Thus, where "rent-a-cab" is included in the meaning of the term "supply", and renting of motor vehicles is the further supply of such motor vehicles, hence, the conditions mentioned in section 17 are fulfilled in favour of admissibility of input tax credit to the assessee of tax paid on such motor vehicles. Hence, the above decision needs reconsideration in light of the provisions cited above.


Finding it difficult to understand? We are here to help. Contact ADCA - One of the reputed GST Consultants In Bangalore - for the complete assistance.

income tax on pension

Reporting a pension income in the IT form

23 Jul,2019

Income tax is applicable for people who make their ends meet through their pension. A pension is a regular payment made by the state to people of or above the official retirement age and to some widows and disabled people. Also, if a salaried individual is retired from employment, typically because of age or ill health, then a pension is paid to them.

Income Tax Form for Pensioners

The Government of India has notified four Income Tax returns forms which are applicable to Hindu Undivided Family (HUF) and individual.

  • Form No. ITR 1: Also popularly known as Sahaj (easy), this form can only be filed by an individual assesse. It is vital to take note that this form can only be used by an individual who has salary as his/ her source of income and not any business enterprise owned by him/her.

  • Form no. ITR 1 is a means by which pensioners can file their income tax returns. This form is also used by majority of salaried taxpayers who own a single house and have their income which is taxable (i.e. income from other sources) in addition to their pension.

For individuals who are receiving pension: 

Where the individual receives pension income from the fund to which contributions are made by employer, in case of ITR 2, under the salary schedule, the individual has to report the name, address and tax deduction and collection account number (TAN) (mandatory only if tax is withheld on pension) of the employer/LIC/any other fund. Also, the individual will have to select 'pensioners' as a category in the field for nature of employment in the salary schedule. 

Commuted pension beyond the limits exempt under the Act and the entire uncommuted pension, should be reported as "Commuted pension" or "Annuity or pension" under 'salary under section 17(1)' of the Act as taxable. The commuted pension which is exempt from tax should be entered in the field "Commuted value of pension received under section 10(10AA)" selected from the dropdown available under "Allowances to the extent exempt under section 10". The reporting of commuted and uncommuted pension in ITR 1 remains the same as ITR 2 except, while reporting the pension income, there is no requirement for the individual to enter name, address of the employer, also this income is to be directly reported under section 17(1) without selecting "Commuted pension" or "Annuity or pension" as applicable under ITR 2. 

Where the individual receives the pension from LIC/any other approved fund out of the contributions made by the individual from his own funds, he/she needs to report uncommuted pension under section "Any other income" of the schedule "income from other sources". Commuted pension, if any, will have to reported under the schedule "Exempt income" as "any other" in ITR 1 and as "any other" under the point "Other exempt income" in ITR 2.

Family members who are earning pension: 

Family members who are earning pension will have to report the same under 'Any other income earned' in the other sources schedule in ITR 2. 

For ITR 1, the individual will have to select 'Family pension' from the drop-down under Income from other sources.

Courtesy – economic times

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