Form 15G and Form 15H

The Banks in India have been directed to deduct TDS of all those individuals who are earning interest on their income more than Rs 10,000. It includes all deposits held in branches. In case an individual's total income is below the taxable limit, he/she can submit a Form 15G and Form 15H to the bank to request them not to deduct TDS on the interest amount.

What is Form 15H ?

It is a declaration under sub-section (1C) of Section 197A, Income Tax Act. This form is applicable for all those individuals who are more than 60 years old. Through this form, they can claim tax deductions at the time of filing ITR.

The eligibility criteria to submit Form 15H :

  • To become eligible for Form 15H, one has to be sure that that the estimated tax for the previous year must 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 is required to submit this form to whom the loan was advanced, i.e., this form will need to be submitted to each bank branch through which the individual is collecting interest.
  • No TDS deduction of those who submit Form 15H.
  • 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 is form 15G ?

It is a tax declaration under sub-sections (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 Form 15G :

  • Must be a resident of India
  • The Form 15G must be submitted by individuals who are below the age of 60 years or by a Hindu Undivided Family.
  • This form has to be submitted before first interested of fixed deposit credited to bank account.
  • This form will need to be submitted to each bank branch through which the individual is collecting interest.
  • The minimum exemption amount for the financial year 2022-23 (AY 2023-24) is Rs.2,50,000. So, the total interest income must be less than minimum exemption amount.

Apart from banks, some of the places where Form 15H and 15G can be submitted are mentioned below :

  • Insurance Commission
  • Rent
  • Income from Corporate Bonds
  • EPF Withdrawal
  • LIC Premium Receipts
  • Post Office Deposits

Last date of submitting Form 15G and Form 15H :

The validity of Form 15H and 15G are one year. Make sure to submit the form at the start of financial year. In case, you missed it, theTDS will get deducted by the bank. In such cases, you can file the forms immediately or file the ITR to get the TDS refunded.

How submitting Form 15G and 15H is helpful ?

You become liable for TDS deduction on EPF withdrawal done before 5 years of continuous service. If an individual has an EPF balance of more the Rs.50,000 and likely 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 :

TDS deduction 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 meet 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.

Frequently Asked Questions

  • What is the difference between Form 15G and Form 15H?
    Both are a kind of self-declaration form needs to be submitted to bank. 15H is mainly for senior and super senior citizens. While Form 15G is for those who are below 60 years and come under Hindu Undivided Families.
  • Do an NRI also have to submit Form 15G and Form 15H?
    No, NRIs cannot submit these two forms. You have to be a resident of India to be able to submit Form 15G and Form 15H.
  • Do I need to submit Form 15G and Form 15H separately in all banks where I am holding an account?
    Yes, you have to submit one copy at every branch of your bank from which you have received interest income.
  • What happens if I have submitted Form 15G/Form 15H but I also have taxable income?
    It is a must to notify your bank regarding the tax on your total income and that it is not NIL. The bank will then make the required changes and also deduct TDS.