From: The Times of India, 02-08-06
The government on Tuesday said that submission of forms 15G and 15H would exempt people from incurring tax deducted at source (TDS) on interest earned on deposits.
Replying to supplementaries during Question Hour in Rajya Sabha, finance minister P Chidambaram said that if anyone has been subjected to TDS from the interest income, it would be corrected during the next quarter.
He said it was wrong to deduct TDS after submission of either Form 15G or Form 15H, as the case may be. Through the forms, an investor declares that his net tax liability on his income is zero. According to the norm, banks cannot deduct TDS if an individual has submitted the forms. But certain violations by banks were brought to the government's notice and it had to intervene.
