Understanding Form 15G and Form 15H

What is Form 15G and Form 15H?

Form 15G and Form 15H are forms that we need to submit every financial year, as per eligibility to the banks, requesting the bank not to deduct Tax Deducted at Source (TDS) on the Interest Income. The depositor should have a PAN card to submit these forms.

Form 15G is for individuals less than 60 years of age and Form 15H is for senior citizens aged 60 years or more.

Purpose of submitting Form 15G and 15H

Form 15G and 15H are submitted to banks every financial year to make sure that no deduction at source is done for the income in the form of interest from banks. TDS will be levied in case the interest paid or payable on your fixed deposit, recurring deposit etc. is more than Rs. 10,000 in a financial year. Therefore, in case the income of investor including interest from bank is less than the taxable income, he can file form 15G/15H to ensure bank will not deduct TDS. The interest is calculated every year on 31st March and tax is deducted if the interest is more than Rs 10,000.

Both Forms 15G and 15H are valid for one financial year. Therefore it is mandatory to submit these forms every year if you are eligible to file these forms. The taxpayer has to submit these Forms as soon as the financial year starts to ensure that the bank will not deduct TDS on his/her interest income.

Eligibility of Submitting Form 15G

  • An individual or HUF (Hindu Undivided Family)
  • Person Resident of India
  • Age of person should be less than 60 years
  • Tax Liability should be NIL
  • Interest income received from bank must be less than the exemption limit of that year.

Eligibility to Submit Form 15H

  • You must be a resident individual
  • Your Age should be 60 years or more
  • Tax Liability should be NIL
TypeForm No.AgeTax Exemption Upto to Annual income of Rs.
Individual15GBelow 60 years2,50,000
Senior Citizen (Individual)15H60-80 years3,00,000
Super Senior Citizen (Individual)15H80 years above5,00,000
Other than Individual (Trust, Association, HUF etc.)15GNot Applicable2,50,000

Important points during Submission

  • Submit a copy of PAN card to the bank in the beginning of the Financial Year and get the Acknowledgement for the same from Bank.
  • You should submit the details of Forms 15G/H submitted to other banks as the total interest from all the bank accounts can be verified by the Banker.
  • Do not declare any wrong information to banks
  • Submit the forms as per eligibility by furnishing correct details to avail the benefit. You can also file it online also as some banks provide online facility.
  • Always take one copy of the relevant form as received if you are submitting the application manually to bank which is considered as a proof of submission.

Procedure to Fill Form

  • Name of Assessee – Name as per Income Tax records
  • PAN of the assessee –As per your PAN card
  • Status –an individual or HUF
  • Previous Year –current financial year
  • Residential Status –For Residents only
  • Flat/Door/Block No – details of your address
  • Name of Premises – Your complete address
  • Road/Street/Lane
  • Area/Locality
  • Town/City/District
  • State
  • PIN
  • Email ID
  • Contact Number
  • Assessed to tax as per the Income tax act, 1961?
  • If ‘yes’ to the previous question then provide details of latest assessment year for which you have been assessed.
  • Estimated Income
  • Estimated total income of the previous year
  • Details of Form 15G other than this form
  • Signatures

What you can do if TDS is deducted by Bank?

You can claim the refund for the TDS deducted by the bank on the interest amount while filing your Income Tax Return.

Penalty for wrong information

Penalty will be imposed, if you furnish any of the above forms to the bank even if you are not required or eligible to submit them. If any false declaration in Form 15G or Form 15H by the taxpayer occurs and the tax evaded exceeds Rs 25 lakh, then he could be subject to rigorous imprisonment of 6 months and maximum upto 7 years accompanied by a fine. In any other case, a taxpayer would need to undergo imprisonment between 3 months to 2 years with a fine u/s 277 of the Income-tax Act.

Amendment: From April 1, 2018, a new Section 80TTB has been inserted in the Income-tax Act, 1961, that allows a deduction up to Rs 50,000 in respect of interest income from deposits held by senior citizens. However, usage of Section 80TTB cannot be clubbed with Section 80TTA as Section 80TTA also provides a deduction of Rs 10,000 on interest income from savings account in bank deposits and post office. In summary, TDS on account of interest income for senior citizens, only gets deducted when interest income exceeds Rs 50,000 in a relevant financial year.

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