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Form 15G and Form 15H

Form 15G and Form 15H are used for avoiding the TDS deductions at source if deductee expects his Income to be lower than the taxable limit. In this article we are discussing important points to remember while submitting the Form 15G and Form 15H to the deductor.

Form 15G

This is the Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by a resident individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax.

Form 15H 

This is a Declaration under sub-section (1C) of section 197A of the Income-tax Act, 1961, to be made by a resident individual (NOT AVAILABLE FOR HUF) who is the age of sixty years or more claiming certain receipts without deduction of tax.

Points to Remember:

Estimated tax for the previous assessment year should be nil...

  • Assessee need to submit form 15G/H to banks if interest from one branch of a bank exceeds 10,000/- in a year.
  • This form should be submitted to all the deductors to whom you advanced a loan. For example- you have deposit in three SBI bank branches Rs.1, 00,000 /- each. You must submit the Form 15G/H to each branch.
  • Submit this form before the first receipt. It is not mandatory but it will avoid the TDS deduction. In case of the delay, the bank may deduct the TDS and issue TDS certificate at the end of the quarter.
  • You need to submit for 15G/H if interest on loans, advances, debentures , bonds or say interest income other than interest on bank deposits exceeds Rs.5,000/-

Difference between form 15G and 15H

  • Form 15G can be submitted by a resident individual below the Age of 60 Years while form 15H can be submitted by senior citizens i.e. resident individual’s above the age of 60 years.
  • Form 15G can be submitted by Hindu Undivided families but form 15H can be submitted only by resident individual above the age of 60 years.
  • 15G can’t be filed by any person whose income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax.
In a nutshell we can say that anybody whose tax on estimated income is not NIL and having income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax cannot file DECLARATION u/s 15G.

Examples to understand who can submit Form 15G and Form 15H

Category

Mr. A

Ms. B

Mr. C

Mr. D

Age

55 years

22 years

68 years

65 years

Salary

1,70,000

-

-

-

Pension

-

-

1,00,000

-

Fixed Deposit interest income

80,000

2,60,000

1,80,000

3,50,000

Total Income before allowing Sec80 deductions

2,50,000

2,60,000

2,80,000

3,50,000

Deduction Under Sec 80

40,000

30,000

15,000

55,000

Taxable Income

2,10,000

2,30,000

2,65,000

2,95,000

Minimum exempt income

2,50,000

2,50,000

3,00,000

3,00,000

Eligible to Submit Form 15G

Yes

No

No

No

Eligible to Submit Form 15H

No

No

Yes

Yes

Explanation

Form 15G can be submitted as age is less than 60 years. Total tax is nil and interest income is less than minimum exempt income.

 

Form 15G cannot be submitted since interest income is more than the basic exemption limit

Form 15H can be submitted if age is more than 60 years and tax calculated on total income is nil.

Form 15H can be submitted as age is more than 60 years and tax calculated on total income is nil. Form 15H can be submitted although interest income exceeds basic exemption limit.