What is Form 15G & Form 15H?

Form 15G & Form 15H- alltaxtricks
Form 15G & Form 15H

Form 15G & Form 15H

In this blog will Discuss what is Form 15G & Form 15H in detail.

  • Form 15G & Form 15H are self-Declaration forms required to be furnished by the assessee to his banker for Nil Deduction/Lower Deduction of TDS (Tax Deducted at Source) on interest on Fixed Deposit.
  • Form 15H is for senior citizens & Form 15G is for other Individuals.
  • Also, you should have a Valid PAN before declaring forms (or) if you don’t have PAN number or if you’re not submitting PAN Number to your Banker, then your TDS will be deducted @ the Rate of 20% (Higher Deduction for Not Providing PAN).
  • Every Financial year you have to submit Form 15G & Form 15H to the Banks. This Forms Can be submitted manually or Online, Only Some National Banks will accept for online submission.
You Can Download Form 15G & Form 15H using this Link.

 

 

Eligibility for submitting Form 15G

  • If your Age is less than 60 years.
  • Individual or HUF.
  • A resident of India.
  • Tax calculated on your Total Income is nil.
  • Total interest income for the year is less than the minimum exemption of that year financial year.

Eligibility for submitting Form 15H

  • If your Age is more than 60 Years.
  • Individual or HUF.
  • A resident of India.
  • Tax calculated on your Total Income is nil
To Download Form 15G & Form 15H, Click here

 

Form 15G:

Form 15G is a declaration under sub-section (1) and (1A) of section 197A of the Income Tax Act of 1961, to be made by an individual (not being a company or firm) claiming certain receipts without the deduction of tax. The eligibility criteria to submit this form has been listed below:

  • Form 15G can be submitted by individuals below the age of 60 years or by a Hindu Undivided Family (HUF).
  • Form 15G should be submitted before the first payment of interest on a fixed deposit.
  • The individual should submit this form to all deductors to whom a loan was advanced, i.e., this form will need to be submitted to each bank branch through which the individual is collecting interest.
  • This form can only be submitted by individuals whose tax payable on their total income is zero.
  • The individual should be a resident Indian.
  • The total interest income is less than the minimum exemption amount for that year.

Form 15H:

Form 15H is a declaration under sub-section (1C) of section 197A of the Income Tax Act, 1961, to be made by an individual of the age of 60 years or more to claim certain receipts without deduction of tax. The eligibility criteria to submit this declaration is listed below:

Form 15H can only be submitted by individuals who have attained the age of 60 years at the time of submission.

  • The estimated tax for the financial year should be zero. The individual should not have paid tax in the previous year because his/her income should be below the taxable amount.
  • The individual should submit this form to all deductors to whom a loan was advanced, i.e., this form will need to be submitted to each bank branch through which the individual is collecting interest.
  • Form 15H should be submitted to the bank before the payment of the first interest. This is not compulsory, but it will prevent the bank from deducting the TDS.
  • Form 15H will need to be submitted to the banks if the interest from one branch exceeds Rs.10,000/- a year.
  • Form 15H will require being submitted if the interest income from any source other than a deposit, such as interest on a loan, advance, debentures, bonds, etc. exceeds Rs.5,000/- annually.

 

 

What happens if you forgot to Submit Form 15G & Form 15H?

A lot of Individuals Forget (or) Fails to Submit their Form 15G & Form 15H with-in Due Date (i.e., April 07th – 10th) for that Financial Year, which results in TDS Deduction by the Bank on their Fixed Deposits.

In such case,

  • You should file your Income Tax Return Online to claim a Refund of TDS.
  • You should submit your Form 15H & Form 15G immediately because the TDS is Deducted Quarterly, so you can save your TDS for Remaining Financial Year.

 

Reasons for Submitting for Form 15H & Form 15G

Form 15H and Form 15G are usually submitted to banks to prevent the deduction of TDS on interest, these forms can also be submitted for a few other reasons:

  • TDS for EPF withdrawal– There is a deduction of TDS on EPF if an individual withdraws their EPF before completion of 5 years of continuous service. If an individual has an EPF balance of more the Rs. 50,000/- and wishes to withdraw it before completion of 5 years of continuous service, he/she may submit a Form 15G/15H.
  • TDS on income generated from corporate bonds– An individual is eligible for a deduction of TDS from corporate bonds if the income generated from them exceeds Rs. 5,000/-
  • TDS on income from post office deposits– Digitized post offices also conduct TDS and will accept Form 15G/15H if the individual meets the eligibility criteria.
  • TDS on rent- There is a deduction of TDS on rent if the total rental payment for a year exceeds Rs.1.8 lakhs. If the individual’s total income is nil, he/she can submit Form 15G/15H to request the tenant to not deduct TDS.
To Download Form 15G & Form 15H, Click here

 

 

Conclusion:

Hope, From the above explanation you’ve got some useful information about Form 15G & Form 15H & Its importance.

If you have any queries, then comment in the below comment box we will reply to your queries.

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Happy learning!

Thank you.

Author: SRINIVASAN VENKATESH

The author is a Digital marketer & also worked as a TDS (Tax Deducted at Source) Operations Manager, He has more than 4 years of Experience in TDS Processing & Uploading, also has experience on TDS Default Clearance which raised by Income Tax Department (Reflected in TRACES).

He was also handled a Project of “Entire Employees PAN Database Error identification & Rectification” for Murugappa Group (Various units like EID Parry (India) Ltd, Parry Agro Industries Ltd, Murugappa Holdings Ltd etc.., ), Which helped them to avoid huge Tax Defaults & due to this project the company saved a lot of amount.

He worked as a TDS Consultant in the PVT Firm in Bangalore, Handled Corporate Clients Like South Western Railway (Bangalore Division), Karnataka Traffic Police (Bangalore Division), Karnataka Power Corp (KPTCL), Bangalore Electricity Company (BESCOM), Gulburga Electricity Company (GESCOM) Mphasis, Axiss Dental, LifeStyle International, State Bank of India, UCO Bank, Food Corporation of India (Chennai & Bangalore), Life Insurance Corporations & Govt Institutions in Karnataka & Tamil nadu.

For any Support, Kindly contact us…
Our email : [email protected]

About SRINIVASAN VENKATESH 21 Articles
The author is a Digital marketer & also worked as a TDS (Tax Deducted at Source) Operations Manager, He has more than 4 years of Experience in TDS Processing & Uploading, also has experience on TDS Default Clearance which raised by Income Tax Department (Reflected in TRACES). He was also handled a Project of "Entire Employees PAN Database Error identification & Rectification" for Murugappa Group (Various units like EID Parry (India) Ltd, Parry Agro Industries Ltd, Murugappa Holdings Ltd etc.., ), Which helped them to avoid huge Tax Defaults & due to this project the company saved a lot of amount. He worked as a TDS Consultant in the PVT Firm in Bangalore, Handled Corporate Clients Like South Western Railway (Bangalore Division), Karnataka Traffic Police (Bangalore Division), Karnataka Power Corp (KPTCL), Bangalore Electricity Company (BESCOM), Gulburga Electricity Company (GESCOM) Mphasis, Axiss Dental, LifeStyle International, State Bank of India, UCO Bank, Food Corporation of India (Chennai & Bangalore), Life Insurance Corporations & Govt Institutions in Karnataka & Tamil nadu. For any Support, Kindly contact us... Our email : [email protected]

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