The Indian Income Tax Department offers self-declaration forms, Forms 15G and 15H. These forms are used to request an exemption from tax deduction at source (TDS) on specific types of income by stating that an individual’s income is below the taxable limit. It’s vital to remember that Forms 15G and 15H are only good for one fiscal year and must be submitted annually if the applicant still meets the requirements.
If a person’s total income is more than the exemption threshold, submitting these forms does not relieve them of their tax obligations. It is necessary for them to file their income tax returns (ITR) and make the necessary tax payments.
What is Form 15G and Form 15H?
Section 194A mandates that 10% of interest, excluding interest on securities, be withheld for tax purposes. Tax will be subtracted at the rate of 20% if no PAN is submitted. Therefore, if the interest amount exceeds Rs. 10,000 in a financial year, banks must also deduct TDS from the interest that is payable on deposits. To determine this cap, the bank takes into account deposits made in each of its branches.
Forms 15G and 15H are introduced under section 197A and Rule 29C to relieve assesses who are not liable to income tax because their taxable income does not exceed the basic exemption limit.
For TDS on EPF withdrawal, income from corporate bonds, post office deposits, and insurance commission under section 194D, Forms 15G or 15H may also be submitted. From the 2016–17 fiscal year, Form 15G/15H may also be submitted for TDS on rent in accordance with Section 194I.
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Who can file Form 15G and Form 15H & When?
A single fiscal year is the validity period for Forms 15G and 15H. Make sure to turn in these forms at the start of the fiscal year each year. By doing this, you can prevent the bank from deducting TDS from your interest income.
Form 15G
- Any Resident Individual (below 60 years of age) or HUF or trust or any person (other than company or firm)
- Having interest income from FD below the basic exemption limits of Rs 2.5 lakhs and
- No final tax liability
- Having a valid PAN
Form 15H
- Any resident Individual aged 60 years or above, namely, Resident Senior Citizens
- Having any Interest Income
- The final tax liability should be NIL
- And Must have a valid PAN
What is the need for Form 15G and Form 15H?
Banks and other public financial institutions deduct TDS from the interest income from term deposits while crediting your account with periodic interest. If a person’s total income is less than the basic exemption limit and there is no final tax liability for that specific financial year, they can avoid having TDS deducted from such interest income.
Banks and financial institutions deduct no TDS on saving bank accounts.
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Where Form 15G and Form 15H are required to be Submitted?
1. EPF Withdrawal: If an EPF withdrawal is made before five years of continuous service and the balance is more than ₹50,000, TDS is withheld. In this scenario, Form 15G may be submitted.
2. Income from Corporate Bonds: TDS is applied if the income from corporate bonds is more than ₹5,000. Forms 15G and 15H, on the other hand, can be used to ask the issuer not to deduct TDS.
3. Income from LIC Policies: 5% TDS is due if the proceeds from a LIC policy exceed ₹1 lakh and the maturity amount is subject to taxation. On the other hand, you can submit Forms 15G and 15H to request not to deduct TDS if your total income tax is zero.
4. Income from Post Office Deposits: Since post office deposit income is likewise liable to TDS, Forms 15G and 15H may be submitted.
5. Revenue from Rent: As of April 1, 2019, the tenant must withhold the TDS from rent exceeding ₹2.4 lakhs per year. On the other hand, you can file Form 15G or Form 15H asking the tenant not to deduct TDS if there is no tax on your total income.
How to Fill Form 15G?
- Name of Assessee (Declarant): Fill in your name and PAN number as per your PAN card.
- Status: Fill in whether you are an individual or a HUF.
- Previous Year: Fill in the current financial year you are filling out the form.
- Residential Status: You can only fill out this form if you are an Indian resident.
- Contact Details: Fill in your current address, email, telephone, and mobile number.
- Whether assessed to tax under the Income Tax Act, 1961?: If in any of the past 6 years your income has been above the taxable limit, then fill in “yes.”
- If yes, the latest assessment year you assessed: Fill in the latest year in which your income was above the taxable limit.
- Estimated income for which declaration is made: Fill in the total income (including interest income) on which TDS is not to be deducted.
- Estimated total income of the previous year (PY) in which income is mentioned in row 16 to be included: Calculate your total income from all sources, salary, stipend, interest income, or any other income you earned during the year.
Note: Include the income mentioned in row 16 below. - Details of forms filed other than Form 15G during the previous year, if any: Please provide the exact number of Forms you have filled and the total income pertaining to which the declaration is being filed.
- The aggregate amount of income for which Form 15G was filed: Fill in the total income for which you filed Form 15G during the previous year.
- Information about the income for which a declaration is made:Include the identification number of the applicable investment or account, the type of income, and the section where taxes are deductible. Don’t forget to include the number of the fixed deposit account, the information about recurring deposits, the details of NSCs, the number of the life insurance policy, etc.
- Declarant’s Signature: Please sign the document and indicate if you are signing on behalf of the Association of Persons (AOP) or HUF.
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Key Features of Form 15G
- People under 60 years old can self-declare on Form 15G and submit it to banks and other financial institutions. The Income Tax Act of 1961’s Section 197A contains the guidelines for Form 15G.
- If the annual income of the individual is less than the basic exemption limit, the form requests that tax deducted at source (TDS) not be applied to their interest income.
- The current Form 15G format was introduced in 2015 by the Central Board of Direct Taxes (CBDT) in an effort to facilitate tax compliance for both tax deductors and tax deductees.
- Individuals must submit Form 15G for current investments in the first quarter of the fiscal year in order to benefit from it.
- Form 15G must be submitted before the first interest credit for new investments.
Eligibility Criteria to Fill Form 15G
To be eligible to submit Form 15G, you must:
- Be an individual or a person other than a company or a firm.
- Be a resident Indian for the financial year in question.
- Be under 60 years old.
- Have a zero tax liability based on your total taxable income for the financial year.
- Have a total interest income below the basic exemption limit for the financial year.
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How to fill form 15H?
- Name of Assessee (Declarant): Fill in your name and PAN number as per your PAN card.
- Status: Fill in whether you are an individual or a HUF.
- Previous Year: Fill in the current financial year you are filling out the form.
- Residential Status: You can only fill out this form if you are an Indian resident.
- Contact Details: Fill in your current address, email, telephone, and mobile number.
- Whether assessed to tax under the Income Tax Act, 1961?: If in any of the past 6 years your income has been above the taxable limit, then fill in “yes.”
- If yes, the latest assessment year you assessed: Fill in the latest year in which your income was above the taxable limit.
- Estimated income for which declaration is made: Fill in the total income (including interest income) on which TDS is not to be deducted.
- Estimated total income of the previous year (PY) in which income is mentioned in row 16 to be included: Calculate your total income from all sources, salary, stipend, interest income, or any other income you earned during the year.
- Note: Include the income mentioned in row 16 below.
- Details of all forms filled other than Form 15H during the previous year: Please provide the exact number of forms you have filled and the total income pertaining to which the declaration is being filed
- The aggregate amount of income for which Form 15H was filed: Fill in the total income for which you filed Form 15G during the previous year.
- Information about the income for which a declaration is made:Include the identification number of the applicable investment or account, the type of income, and the section where taxes are deductible. Don’t forget to include the number of the fixed deposit account, the information about recurring deposits, the details of NSCs, the number of the life insurance policy, etc
- Signature of the Declarant: Sign the form in your individual capacity.
Key Features of Form 15H
- People under 60 years old can self-declare on Form 15H and submit it to banks and other financial institutions. The Income Tax Act of 1961’s Section 197A contains the guidelines for Form 15H.
- If the annual income of the individual is less than the basic exemption limit, the form requests that tax deducted at source (TDS) not be applied to their interest income
- The current Form 15H format was introduced in 2015 by the Central Board of Direct Taxes (CBDT) in an effort to facilitate tax compliance for both tax deductors and tax deductees.
- Individuals must submit Form 15H for current investments in the first quarter of the fiscal year in order to benefit from it.
- For new investments, Form 15H must be filed prior to the first interest credit.
Read Also: Bank FD vs Senior Citizen Savings Scheme (SCSS): Interest rate, tenure, tax benefits
Eligibility Criteria to Fill Form 15H
To be eligible to submit Form 15H, you must:
- An individual taxpayer, not an entity or organisation.
- Anyone who is at least 60 years old.
- Anyone who has no tax liability for the applicable financial year.
What to Do if I Forget to Submit Form 15G and 15H on Time?
Though when opening a deposit account, most people file Forms 15G and 15H. Some, though, might neglect to turn them in on time, in which case the TDS would be deducted. Here are some options for you to consider:
1. To receive a TDS refund, submit an income tax return (ITR): To get the excess TDS deducted refunded, you can file an ITR. Since they deposit the TDS to the Income Tax Department, deductors never give you a refund.
2. Submit Form 15G and Form 15H immediately: Banks typically deduct TDS once every quarter. In order to prevent the bank from deducting TDS for the remainder of the financial year, please submit Form 15G or Form 15H as soon as possible.
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Difference between Form 15G and 15H
| Parameters | Form 15G | Form 15H |
| Eligibility | Indian residents ( not a compaany or a fir) less than 60 years of age are eligible for 15G. | Indian residents of 60 years and above are eligible for this form. |
| Uses | Form 15G can be used for non-deduction of TDS on interest income from bank deposits, interest from post office deposits, interest from rental income, Employers’ Provident Fund Withdrawal, from a life insurance policy, interest from corporate bond and debentures. | Form 15H can be usedto avoid TDS on the interest generated from fixed deposits, from corporate bonds, post office, on EPF withdrawal, rent. |
| Benefits | This form helps individuals below 60 years to avoid TDS deductions from interest income in a financial year. It cannot be filled by NRIs | This form helps individuals above 60 years to avoid TDS deductions from interest income in a financial year. It cannot be filled by NRIs |
| Issued Against | This form is issued against a Fixed deposit holder having an age of below 60 years. | This form is issued against the Fixed deposit holder and Recurring deposit holder aged 60 years or above. |
| Issuer | All major banks of India and the Income Tax Department issue Form 15G. | All major banks of India and the Income Tax Department issue Form 15G. |
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How to File Form 15G and 15H Online?
Banks, or deductors, must submit Forms 15G & 15H via the income tax e-filing website. To begin the process, the deductor must also have a current TAN and register as a Tax Deductor & Collector on the income tax e-filing website.
If the deductor is not registered, they should first register as Tax Deductor & Collector to proceed.
Preparation Process
The tax deductor issues a Unique Identification Number, or UIN, to each person who files a Form 15G or Form 15H. Form 15G and Form 15H quarterly statement filings require the UIN. For a minimum of seven years, Forms 15G and 15H must be kept up to date.
UIN includes 3 fields – Sequence number, financial year, and TAN of the payer/deductor. The payer should digitize the paper declaration, bearing the same sequence number mentioned in the UIN.
Filing Process
- The payer needs to upload Form 15G & Form 15H received quarterly on the e-filing website
- The payer should quote ‘sequence number’ (Field ‘a’ of UIN) in the quarterly TDS statement against the transaction covered under Form 15G and Form 15H even though no TDS has been deducted
- Visit the income tax e-filing website
- Click on ‘e-file’ and click on ‘Prepare & Submit Online Form (Other than ITR)’
- Prepare the XML zip file by clicking on FORM 15G/FORM 15H (Consolidated)
- To file FORM 15G/15H, you must have a DSC (Digital Signature Certificate)
- Then, generate the signature for the zip file using the utility
- Now, use TAN to log in to incometaxindia.gov.in
- Go to e-File -> Submit Form 15G/15H
- Select the Form Name (Form 15G or Form 15H), Financial Year, Quarter, and Filing Type. Then, click on ‘Validate’
- Browse the ZIP and Signature files and attach them. These files can be generated from the DSC utility
- Download the DSC Management Utility
- Click the Upload button. The success message appears on the screen after a successful upload
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How to check filing status?
- Go to My Account –>View Form 15G/15H to check the status of your uploaded file
- The status of the statement will be “Uploaded” once it has been uploaded
- The uploaded file will be processed and validated.
- After validation, the status will be either “Accepted” or “Rejected,” which will reflect within 24 hours of the upload.
- Accepted statements will be sent to CPC-TDS to be processed further
- The rejection reason must be available if the status is “Rejected,” and the corrected statement must be uploaded
What information is required to be furnished in Form 15G and Form 15H?
A declaration and some basic information, such as the taxpayer’s or individual’s name, address, contact information, and estimated income, must be signed and submitted with verification. As seen below, the forms are split into two sections. You must fill out the first section, and the authority to whom you submit the relevant form must fill out the second. Although these two forms appear to be similar, they differ significantly from one another. One more column on Form 15H asks for your Date of Birth, which is presumably something you can only provide if you are sixty years of age or older.
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