proper acknowledgment | Simple Financial Mantras

A proper acknowledgment of any service request will help the consumer in case of any service dispute between the consumer and the service provider.

In this electronic era, majority of the service requests are placed on phone or websites. This is true for Banks too. However at times, the Physical service request signed by the authorized signatory is necessary. This is true also for Form 15-G/15-H

Forms 15G or 15H has to be submitted to your banks to avoid the tax deducted at source (TDS) on your investments, if your income is below the exemption limit.

Reserve Bank of India, has received numerous complaints that TDS (Tax Deducted at Source) was done, even when the Form 15G/Form 15H was provided to the Bank.

To reduce such complaints and to increase customer service levels RBI vide Notification No.BI/2012-13/516 DBOD.No.Leg.BC.100/09.07.005/2012-13 dt.May 31, 2013 has advised Banks branches to give an acknowledgment at the time of receipt of Form 15-G/15-H.

The notification was released in consultation with IBA (Indian Banks’ Association).

The key benefits of this notification are:

01) Build a system of accountability at bank end.

02)Reduce inconvience to bank customers.

03)Minimise resolution time for customer queries.

From this financial year, Income Tax department has asked for additional details as part of Form 15G/Form 15H, and hence it becomes still more important for customers as well as bank officials to hold the authenticated copies of the forms.

An informative article on Form15H/form 15G