What are Form 15G and 15H Used for?
Form 15G and 15H are basically forms of self-declaration which are submitted by individuals to banks, requesting no TDS deduction on interest income. This is done since their income is lower than the basic limit for exemptions. Giving PAN details is mandatory for this purpose. Some banks may also allow submission of these forms online via their official websites. Form 15G may be submitted by everyone else while 15H is for senior citizens of 60 years or more.
The former is also for resident individuals or HUFs or trusts and other assessees but not firms/companies with age lower than 60 years. For 15G and 15H alike, the tax calculation for total income will be NIL. The total interest income (under Form 15G) will be lower than the exemption limit for the year in question, i.e. this was Rs. 2.5 lakh for FY2020-21 or AY2021-22. Non-resident Indians cannot claim Form 15H and 15G benefits.
The forms will have validity for a single financial year. Submit the same every year at the beginning of the new financial year. This makes sure that TDS is not deducted on income from interest by your bank. If you have forgotten to submit the forms in a timely manner, then the bank may have deducted TDS already from your interest income. You can file income tax returns for claiming refunds of the TDS amount that has been deducted by the bank. You can also immediately submit Form 15G and Form 15H so that TDS is not deducted for the remainder of the financial year. This works since most banks deduct TDS on a quarterly basis.
When do you need these forms?
You can submit the forms to the banks and also in case of the following scenarios-
- EPF withdrawal- TDS is deducted on the balance if withdrawn prior to 5 years of continuous service. If you have served for less than 5 years and are planning to withdraw a balance of more than Rs. 50,000, the forms 15G/15H may be submitted likewise.
- Corporate bond income- If you have corporate bonds, TDS will be deducted likewise if income exceeds Rs. 5,000. You can submit these forms in such scenarios as well without any hassles.
- LIC premium receipts- If amounts garnered from policies surpass Rs. 1 lakh and are taxable, TDS at 2% will be deducted prior to payment by the insurance company. From 1st September 2019, TDS has been made 5% of the amount of income which has the proceeds payable at maturity or paid. You may submit the forms requesting non-deduction of TDS in this regard.
- Post office deposits- Digitized post offices also enable TDS deduction while accepting both forms if you meet the applicable conditions as stipulated.
- Rent- TDS is deducted for rentals surpassing Rs. 2.4 lakh annually. You can submit these forms if taxes on your total income are absolutely NIL.
- Insurance Commission- TDS is deducted for commissions on insurance in case this surpasses Rs. 15,000 for each financial year. However, you can download Form 15G/H and submit for non-deduction in this regard.
Filling up Form 15G
- Name of Assessee & PAN Number
- Status- Whether HUF or Individual
- Residential Status
- Address, PIN Code, telephone number, and email
- Previous Year (put in the present financial year)
- Whether assessed under 1961 Income Tax Act- Put yes if the income was over the taxable limit in any of the last 6 years.
- If yes, the last assessment year counts- state the latest year where your income was higher than the taxable threshold.
- Estimated income for which the declaration has been made- fill up the sum of interest and other income on which TDS deductions have to be made.
- Total income from all sources to be mentioned in column 16.
- Details of Form 15G from the earlier year- mention total number of forms filed in a specific year.
- Details other than this form for the applicable previous year.
- Aggregate income for which the form has been filed and total income.
- Income for which filing of declaration is being done.
- Identification number of investment/account, nature of income, section under which tax will be deductible, amount of income.
- Signatures- mention capacity while signing on the behalf of an AOP/HUF.
Submission of Form 15G is not to be done if the income has to be clubbed with anybody else. Interest income from FD in case of any non-earning child/spouse will have to be clubbed together with the income of the depositor as well. In such scenarios, the form will not have validity. PAN of the depositor is compulsory while TDS should be deducted in the depositor’s name as well. Keep all these points in mind while considering usage of Form 15G and Form 15H.
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