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Income Tax Form 15G and Form 15H

by | May 29, 2024 | Income Tax | 0 comments

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Important Keyword: Form 15G, Form 15H, Income Tax, ITR Forms & Documents, optimized, TDS.

What is Form 15G/Form 15H?

Form 15G/15H serves the purpose of ensuring that TDS is not deducted from your income if you meet specific conditions. These forms can be submitted to the deductor responsible for deducting TDS on your income.

A prime example of their use is with banks. Banks typically deduct TDS at a rate of 10% if your interest income from deposits exceeds INR 10,000 (INR 50,000 for senior citizens). If your total income is not taxable, you can submit Form 15G/15H to banks to prevent them from deducting TDS from your interest income. Some banks even allow the online submission of these forms through their websites.

Form 15H is designed for senior citizens aged 60 years or above, while Form 15G is for non-senior citizens. These forms need to be filed at the beginning of each financial year.

What are the conditions for filing Form 15G/ Form 15H?

The conditions for filing Form 15G are as follows:

  1. Your age is less than 60 years.
  2. You are a Resident Individual or HUF.
  3. Tax calculated on your Total Income is zero.
  4. Total Interest income is less than the basic exemption limit of that particular year.

Similarly, for filing Form 15H, the conditions are the same as above, except the individual’s age should be 60 years or above.

Age of the individualBasic Exemption Limit (INR)
Below 602,50,000
Between 60 and 803,00,000
More than 805,00,000

Let’s take an example to understand better:

ParticularsAnjanaRahulGautamPravin
Age25507065
Residential StatusResident of IndiaResident of IndiaNon-Resident of IndiaResident of India
Salary Income / Pension Income2,70,000001,50,000
Interest Income10,0002,60,00085,00020,000
Total Income2,80,0002,60,00085,0001,70,000
Deduction under Section 8040,00050,00000
Total Taxable Income2,40,0002,10,00085,0001,70,000
Basic Exemption Limit2,50,0002,50,0003,00,0003,00,000
Form 15G/15H eligibilityYesNoNoYes
ReasonAnjana can submit Form 15G Since the tax calculated is zero and interest income is less than the basic exemption limitRahul cannot file Form 15G. Even Though the tax calculated is zero because his interest income exceeds the basic exemption limit (INR 2,50,000)Gautam cannot file Form 15H since he is not a resident Indian Pravin can file Form 15H since his tax calculated is zero and interest income is less than the basic exemption limit (INR 3,00,000)  

How to file Form 15G & Form 15H?

Form 15G/15H is utilized to ensure that TDS is not deducted from your income. If your tax liability for the year is zero, you can file these forms with the deductor responsible for TDS deduction. They can be filed either physically or online through the following methods:

  1. Physical Submission:
    • Download Form 15G/15H, fill it out, and submit it to the deductor in paper form.
  2. Online Submission:
    • Visit the website of the deductor (e.g., Bank’s website).
    • Log in to your account, fill out Form 15G/15H, and submit it online.

Details required for filing Form 15G/15H include PAN, residential status, address details, contact information, estimated income details, and details of previously filed Form 15G/15H.

Form 15G/15H should be submitted for the following income sources when TDS is deducted:

  1. EPF Withdrawal: If withdrawing from the EPF account before completing 5 years of continuous service, and the withdrawal amount exceeds INR 50,000, Form 15G/15H can prevent TDS deduction.
  2. Rent: If rental income for the year exceeds INR 2,40,000, TDS is deducted by the tenant. However, if the total income, including rent, is not taxable, Form 15G/15H can be submitted to the tenant to avoid TDS deduction.
  3. Interest Income from FDs with Banks/Post Office: If total income, including interest from deposits, is not taxable, Form 15G/15H can be submitted to the Banks/Post office to prevent TDS deduction.
  4. Corporate Bonds: If interest income from corporate bonds exceeds INR 5000, TDS is deducted. Form 15G/15H can be submitted to the issuer to avoid TDS deduction.
  5. Insurance Commission: Insurance agents can submit Form 15G/15H to avoid TDS deduction if tax on their total income is zero.
  6. Dividend Income: From FY 2020-21, TDS @ 10% will be deducted on dividend income exceeding INR 5,000. Traders can submit Form 15G/15H if tax on their total income is zero to avoid TDS deduction.

Read More: Form 12BB: Investment Declaration

Web Stories: Form 12BB: Investment Declaration

Official Income Tax Return filing website: https://incometaxindia.gov.in/

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