Individuals with their total income below the taxable limit can submit Form 15H and Form 15G to the bank and ask them to not deduct TDS on the amount of interest. These forms help claim receipts without any tax deduction.
Form 15G and Form 15H are self-declaration forms provided by the Income Tax Department in India. These forms are used to declare that an individual’s income is below the taxable limit, thereby seeking exemption from tax deduction at source (TDS) on certain types of income. It’s important to note that both Form 15G and Form 15H are valid for one financial year and need to be filed every year if the individual continues to meet the eligibility criteria.
Submitting these forms does not absolve the individual from paying taxes if their total income exceeds the exemption limit. They are required to file their income tax returns (ITR) and pay taxes accordingly.
What is Form 15G And Form 15H?
Form 15G and 15H are self-declaration forms to be filed and submitted by individuals to ensure that the banks or financial institutions do not deduct TDS on the interest income earned/accrued in a financial year as their estimated total income will be below the basic exemption limit (i.e., ₹2,50,000 or ₹3,00,000 or ₹5,00,000, as applicable) and there is no tax liability in that particular year.
In the case of non-senior citizens, interest income should also be below the basic exemption limit to fill the Form 15G despite no tax liability on the total estimated income.
As per the provision of the Income Tax Act, financial institutions and other organizations must deduct TDS while crediting interest income to the account of the person, and the amount exceeds INR 40,000 and INR 50,000 in the case of senior citizens. Normally, people have a myth that interest on fixed deposits is calculated at maturity. Instead, it is calculated, and TDS on interest on the same is deducted periodically, which reflects in your Form 26AS.
Type of Form | FORM 15G | FORM 15H |
Type of Taxpayer | Resident Individual with age less than 60 years or HUF or trust or any other assessee but not a company or a firm | Resident individual aged 60 years or more i.e. Senior citizen. |
Condition | 1. Tax calculated on your total income is Nil | 1. Tax calculated on your Total Income is Nil |
2. The total interest income subject for the year is less than the basic exemption limit of that year, which is Rs.2.5 lakhs(old regime) or Rs.3 lakhs(new regime) for financial year 2023-24 (AY 2024-25) |
| |
Only for Residents | Please note that benefits of Form 15G and 15H cannot be claimed by Non-residents. | |
Who Can File Form 15G and Form 15H & When?
Form 15G and Form 15H are valid for one financial year. Ensure you submit these forms every year at the beginning of the financial year. This way, you can avoid the TDS deduction by the bank or any institution that is liable to deduct TDS from your interest income.
Forms can be submitted by –
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
- Anyone having a valid PAN can submit the Form 15G.
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 or public financial institutions, while crediting the periodic interest in your account, deduct TDS on term deposit interest income.One can avoid deduction of TDS on such interest income if his/her total income is below basic exemption limit and there is no final tax liability in that particular financial year.
Filing Form 15G or 15H helps an individual declare that his/her income during the FY is less than the basic exemption limit and ensures that there is no deduction of TDS from his/her income.
What are the Differences Between Form 15G and Form 15H?
The applicability and effectiveness of both of these forms, how to fill forms 15G and 15H, their uses, etc. Both forms are similar yet distinguished in the following ways
| Form 15G | Form 15H | |
|---|---|---|
| Applicable on | Form 15G can be submitted by any person (other than a company or firm) | Form 15H can be submitted only by resident Individuals |
| Age Limit | Applies to residents below 60 years of age | This applies to resident senior citizens ( aged 60 years and above ) |
| Interest Income shall fall below the basic exemption limit | Interest income shall be below the basic exemption limit and not chargeable to tax | Interest income may or may not be below the basic exemption limit and not chargeable to tax |
| Provision under the Income Tax Act | As per Section 197A (1) and (1A) | As per Section 197A (1C) |
For Which Transactions Can Form 15G or Form 15H be Submitted?
Form 15G:
Form 15 G is filled by resident individuals whose age is below 60 years during the financial year as mentioned in Form 15G is submitted when an individual expects to earn interest income exceeding ₹40,000 and, for senior citizens, ₹50,000 during that financial year and wants to request exemption from TDS on that income.
Form 15H
Form 15H is submitted solely for senior citizens, i.e., individuals who are at least 60 years of age. Eligible individuals wanting to claim exemption from TDS deductions on FDR interest income. Individual Senior citizens need to submit it every financial year to avoid a TDS deduction.
Forgot to Submit Form 15G or Form 15H?
- File your income tax return to claim refund of TDS: The only way to seek refund of excess TDS deducted is by filing yourincome tax return. Banks or other deductors cannot refund TDS to you, since they have already deposited it to the income tax department. Income tax department will refund excess TDS, after you file an income tax return.
- Submit Form 15G and Form 15H immediately: Most banks deduct TDS every quarter. If you forget to submit Form 15G or Form 15H, don’t worry. Submit it at the earliest so that no TDS is deducted for the remaining financial year. To claim refund of excess TDS deducted
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.
- Details of income for which declaration is filed: Fill in the identification number of relevant investment/account etc., nature of income, and Section under which tax is deductible, also fill in the fixed deposit account number, recurring deposit details, details of NSCs, life insurance policy number, etc.
- Signature of the Declarant: Sign the form in your individual capacity.
Note: Do not submit Form 15H if income has to be clubbed with another person’s income
How to Fill Form 15G?
- Download the Form 15G from the EPFO website or from any other reliable source.
- Fill in the details in the form carefully. Make sure to enter your correct PAN number and annual income.
- Sign the form in the presence of a witness.
- Attach a copy of your PAN card with the form.
- Submit the form to your EPFO office along with your PF withdrawal request.
FAQs
What is Form 15G used for?
Form 15G is required to be submitted as a self-declaration by individuals who are below the age of 60 years that their income is below the taxable threshold, and so no TDS should be deducted for the income credited to their account.
How to fill Form 15G for PF withdrawal?
The EPFO portal has launched online submission of form 15G for submitting EPF withdrawal claims. However, you can also fill out and submit a physical copy to the EPFO regional office for non-deduction of TDS.
For online submission, login to EPFO UAN unified portal, Click on Online services > Online Claim, fill in the requisite details, and verify the last 4 digits of the phone number, EPF withdrawal form will be visible.
You can upload Form 15G on the screen or download it from here. Fill out Part 1 of the form and convert it into a PDF. Then, upload the PDF copy of the form while making an online claim.