In this article, details are given on how to fill 15G Form and 15H form. If your interest income exceeds INR 10000 in a year, the bank will deduct an amount known as TDS on the entire interest amount. The bank takes into account the deposits held in all its branches (fixed deposits and recurring deposit) to calculate the interest. However, if your total income is not taxable, then you can submit 15G Form or 15H form to the bank to avoid Tax Deduction at Source (TDS).
Table of Contents
- 1 What is 15G Form? What is 15H form?
- 2 Is there any TDS Limit?
- 3 Who can submit 15G and 15H forms?
- 4 Eligibility Criteria for Filling 15G and 15H forms
- 5 How to fill 15G / 15H Form?
- 6 DECLARATION / VERIFICATION
- 7 How to Fill Form 15H?
- 8 How to Submit Form 15G & 15H online
- 9 Penalty for wrong declaration
What is 15G Form? What is 15H form?
15G and 15H forms are actually self-declaration forms that are submitted to the bank and other institutions so as to avoid deduction of tax at source (TDS) on term deposits, recurring deposits, Interest of Securities, Dividend, NSS and some others.
In most of the fixed income products, the interest that is earned during the year has to be added to your income (unless it is a tax-free investment) and it will be taxed. The tax will be deducted at source (TDS) by the institution (mostly banks) when the interest is paid to you.
Is there any TDS Limit?
The bank will deduct tax only when the interest income exceeds a certain limit. If the interest income exceeds INR 10000 in a year, then the bank will deduct 10 percent as TDS on the entire interest amount, provided your PAN Card is submitted to the bank. In the absence of PAN Card, the bank will deduct an interest of 20 percent of your total interest.
The TDS limit for interest income earned in company deposits is INR 5000.
Who can submit 15G and 15H forms?
Form 15H is meant for senior citizens while Form 15G is meant for all other individuals, HUFs and Trusts.
Form 15G and 15H are valid for only one year. Though you can submit the form at any time of the year, for your existing deposits, you should submit 15G or 15H form at the beginning of the financial year, i.e in April. This is done to ensure that TDS is not deducted by bank.
For newly opened deposits, you can submit the form before the credit of the first interest.
Eligibility Criteria for Filling 15G and 15H forms
Not everyone should submit 15G and 15H Forms.
Conditions for filling 15G Form
- You must be an individual below 60 years or HUF
- You must be a resident of India
- Tax calculated on your total income should be NIL
- The total interest income for the financial year is less than the minimum tax exemption limit for the year. For FY 2018-19 this limit is Rs 2.5 lakhs.
Conditions for filling 15H Form
- You must be an individual of 60 years or more
- You must be a resident Indian
- The total tax calculated after taking all the deductions and exemptions is NIL.
- Basic exemption limit is INR 300000 for senior citizens below 80 years of age. For Super Senior Citizens (i.e more than 80 years of age) the exemption limit is INR 500000.
How to fill 15G / 15H Form?
On the form, you will find the word “Assessee” all over. Assessee refers to the name of the person on whose name the deposit or investment has been done.
So I am writing down what needs to be filled according to the serial number as appears in the form.
1 – Name of Assessee (Declarant) ; Your name as it appears in the PAN Card
2 – PAN of Assessee : Your PAN Card No
3 – Status : Indivudual / HUF (Fill in accordingly)
4 – Previous Year:
5 – Residential Status:
6-12 – Your Address details
13 – Email
14 – Telephone Number
15 (a) –Whether assessed to tax under the Income Tax Act, 1961 : Tick yes if you have filed Income tax return
15 (b) – If yes, latest assessment year for which assessed : Mention the last assessment year in which you filed your income tax. Assessment Year is the next year to the Financial Year. For example, for FY 2018-19, the AY is 2019-20.
16 – Estimated income for which this declaration is made : This is the income from the investment that you are giving declaration for. It is the interest earned from your fixed and recurring deposits for that FY.
17 – Estimated total income of the P.Y. in which income mentioned in column 16 to be included : This is the total income expected in the financial year for which the declaration is made.Calculate your total income from all sources, salary or business, stipend, interest income, any other income that you have earned during the year. Also add the income in Sr 16.
18 – Details of Form No.15G other than this form filed during the previous year, if any
Total No. of Form No. 15G Filled : This is the number of 15G forms you have filled in and submitted the previous year
Aggregate amount of income for which Form No. 15G filed : The total income for which 15G has been filled
19 – Details of income for which the declaration is filed : Here you have to give the details of the investment for which the form is being submitted.
For example if you have affixed deposit, then you need to fill in as follows:
Sl. No. – 1
Identification number of relevant investment/account, etc. – FD Account number
Nature of income – Income from Interest
Section under which tax is deductible – 194A
Amount of income – Rs 7,000 (say)
Here are the Income Tax sections for your ready reference:
DECLARATION / VERIFICATION
You need to fill in your name, the relevant years, dates and sign at the appropriate place.
This is to be filled by the person responsible for paying the income. You do not have to fill in this part.
How to Fill Form 15H?
Everything is similar apart from Sr 3 where you need to fill up the Date of Birth.
How to Submit Form 15G & 15H online
Some banks have allowed to submit Form 15G & 15H online through their internet banking.
Penalty for wrong declaration
You should not provide a false declaration in Form 15G & Form 15H just to avoid TDS. It can lead to fine and imprisonment under Section 377. There can be imprisonment for the period of 6 months to 7 years if the wrong declaration was provided to evade the tax of more than Rs.100000/-. For all other cases, imprisonment can vary from 3 months to 3 years.