Last Updated on Mar 11, 2022 by Sankeeth Sunny
Some people’s income is dependent on the interest earned from banks, investments, or fixed deposits. If your income is sourced from these interests, then TDS (Tax Deducted at Source) management can be cumbersome.
Banks and other financial institutions (that pay interest) are required to deduct TDS at 10% of the interest earned. But if you match specific criteria, Form 15G and Form 15H can be helpful as you can submit them to request your bank to not opt for a TDS deduction.
Here is a guide for you, which covers details of Forms 15G and 15H, their eligibility, why to submit them, and a few things to keep in mind before submitting them.
This article covers:
- What is Form 15G?
- What is Form 15H?
- Purpose of submission
- How to fill the forms
- Form 15H and 15G download
- Things you need to keep in mind
- If you forgot to upload the forms
What is Form 15G?
Under sub-section (1) and (1A) of section 197A of the Income Tax Act of 1961, Form 15G is a declaration for claiming a few receipts without tax deduction. The eligibility criteria are as follows :
- You can submit a Form 15G if you are below 65 yrs of age.
- You are also eligible to submit a Form 15G if you belong to a Hindu Undivided Family (HUF).
- You must be an Indian citizen.
- You can submit a Form 15G if the tax applicable for your total income is NIL.
- You must not have any tax liability.
What is Form 15H?
You can submit Form 15H for TDS reduction if you are a senior citizen. After June 2016, you can submit a Form 15H if your income sources are life insurance policies or NSS (National Savings Schemes). The eligibility criteria are as follows:
- You can only submit Form 15H if you are a senior citizen, i.e., if you are 60 yrs of age or above.
- For the previous financial year, your tax estimate should be NIL. This is to support your claim of income below the tax limit.
- Form 15H is applicable for the use of individuals only and not for organisations or other group entities.
- You must be an Indian citizen.
Purpose of submission
Both these forms primarily serve as a tool that exempts you from TDS. But, you can also submit Form 15G and 15H for other purposes. These forms can help you get rid of the TDS burden on PF and EPF. If you wish to withdraw your PF or EPF before the sanctioned time of 5 yrs, you have to bear a TDS deduction. However, submitting Form 15H or 15G for PF and EPF helps to nullify the burden.
If corporate bonds are a source of your income, then beyond Rs. 5000, it attracts TDS deduction. You can nullify this deduction by producing Form 15G and 15H. Similarly, if your income source is rent, the limit is Rs. 1.8 lakh annually, beyond which it attracts TDS deduction. You can produce a Form 15G or 15H to avoid this deduction.
If you are generating any income from Post Office deposits, you have to bear the burden of TDS beyond a specific income limit. Submitting Form 15G or 15H will be beneficial if you want relief from this burden. If you are a senior citizen, Form 15H can further help you save your taxes levied on incomes from fixed deposit interests or recurring deposits.
How to fill the forms
You can submit Form 15G or 15H by filling out the following details:
- Name, as mentioned in your PAN Card.
- Address for communication
- The year for which you are claiming NIL deductions.
- Your estimated income for which you are claiming NIL deductions.
- Details of investments for which you are filing the declaration.
Form 15H and 15G download
Form 15H or 15G download is quite easy. Most of the banks in India have a fillable one on their official website. You can also download these forms from the official website of the Income Tax Department of India. After downloading the form, simply print and fill it with the above-mentioned details and submit it to the appropriate authorities.
Things you need to keep in mind
Before you submit these forms, here are a few things that you should keep in mind:
- Both these forms are restricted to Indian citizens only. If you are an NRI, you are not eligible to submit these forms.
- You must submit a photocopy of your PAN card with Form 15G or 15H. PAN Card submission is vital, failing which your tax would be deducted at 20%.
- Do not provide any false information in your form. You should know that if any information is proved to be false, you can be subjected to imprisonment of at least 3 mth.
- You must submit Form 15G or 15H to each bank branch which is supposed to pay you interest against the deposits.
- Ensure that you collect an acknowledgement form after submitting Form 15G or 15H. In case of any bank dispute, this acknowledgement form will benefit you.
If you forgot to upload the forms
In case you forgot to submit your Form 15G or 15H and the bank has already deducted your TDS, you have two options. Submit the forms at the earliest, or file your ITR to claim a refund. Banks will deduct TDS every quarter. So, if you forget the forms for one quarter, submitting them at the earliest will save the deductions for the remaining financial year. You can claim a refund from the Income Tax Department with the second option by filing your ITR.
Forms 15G and 15H are vital documents, which will save you from the burden of TDS deductions. If you want to avoid the long bank queues and tedious processes, you can always avail the online fill-up feature of these forms. These documents remain valid for only one year and make sure you do not forget to submit them to the financial institutions at the year’s beginning. Make sure to fill in the details correctly, and preserve the acknowledgment form. Consult your tax advisor/CA for more information on taxes.