What is Form 15G &15H | Form for Non-Deduction (Exemption) on TDS

What is Form 15G &15H | Form 15G &15H Download | Form for Non-Deduction (Exemption) on TDS | Form 15H For Senior Citizens

When your interest income exceeds Rs.40,000 in a year, banks are required to deduct TDS (before FY 2019-20, the limit was Rs 10,000). This limit is calculated by adding deposits held in all of the bank’s branches. If your total income is less than the taxable limit, you can request that the bank not deduct any TDS by submitting Form 15G and 15H.

What is Form 15G &15H

Form 15G & 15H are self-declaration forms that a person submits to their bank to request that TDS on interest income not be deducted since their income is below the basic exemption limit. It is necessary to provide your PAN to do so. You can submit these forms online through the bank’s website in some cases.

Form 15G

1. There is no tax on your overall income.
2. Individuals, HUFs, trusts, and other assesses who are residents but who are not companies or firms under the age of 60 years.
3. The entire amount of interest income liable to taxation for the year is less than the basic exemption limit, which is Rs.2.5 lakh for the financial year 2020-21. (AY 2021-22)
4. Non-residents are not eligible for Form 15G benefits.

Form 15H

• There is no tax on your overall income.
• A senior citizen is a resident who is 60 years old or older.
• Non-residents are not eligible for Form 15H benefits.

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Understand Form 15G and 15H by Example

Age	21 years	50 years	65 years	68 years
Salary	–	Rs. 1,80,000	–	–
Pension	–	–	Rs. 1,00,000	–
FD interest income	Rs. 2,60,000	Rs. 85,000	Rs. 1,80,000	Rs. 3,30,000
Total Income before allowing section 80 Deductions	Rs. 2,60,000	Rs. 2,65,000	Rs. 2,80,000	Rs. 3,30,000
Taxable income	Rs. 2,30,000	Rs. 2,20,000	Rs. 2,70,000	Rs. 2,75,000
Deductions under section 80	Rs. 30,000	Rs. 45,000	Rs. 10,000	Rs. 55,000
Minimum exempt income	Rs. 2,50,000	Rs. 2,50,000	Rs. 3,00,000	Rs. 3,00,000
Eligible to submit Form 15H	No	No	Yes	Yes
Eligible to submit Form 15G	No	Yes	No	No
Age more than 60 years	No	No	Yes	Yes
Age less than 60 years	Yes	Yes	No	No
Interest income is less than the basic exemption limit	No	Yes	N.A.	N.A.
Tax on total income is Nil	Yes	Yes	Yes	Yes
Form to be submitted	Cannot Submit	Form 15G	Form 15H	Form 15H

In the Above Illustrations:

• Prakash, a senior citizen, can file Form 15H because he owes no taxes.
• Karan is unable to file Form 15G since his interest income exceeds the basic exemption level, even though his overall income is tax-free.
• The condition that interest income exceeds the basic exemption level applies exclusively to Form 15G and not to Form 15H. Senior citizens can file Form 15H even if their interest income exceeds the basic tax exemption level, as long as their taxable income (after deductions) is less than the exemption limit.
• The condition of interest income exceeding the basic exemption limit applies solely to Form 15G, not to Form 15H.

EPF Withdrawal

Apart from Banks, Where can You Submit Form 15G or Form 15H?

While these documents can be sent to banks to ensure that TDS is not deducted on interest, they can also be filed to a few other locations.

1. TDS on EPF withdrawal: If an EPF balance is withdrawn before 5 years of continuous service, TDS is deducted from the sum. You can use Form 15G or Form 15H if you have less than 5 years of service and want to withdraw your EPF balance of more than Rs.50,000 (Rs.50,000 from 1 June 2016, Rs.30,000 previous to that).To apply for these forms, you must meet the requirements indicated above. It means you should pay no tax on your overall income, including any EPF balance removed.
2. TDS on post office deposits: If you meet the prerequisites for submitting Form 15G or Form 15H, post offices that have been digitized will deduct TDS and accept Form 15G or Form 15H.
3. TDS on rent: TDS is deducted if the rent is more than Rs 2.4 lakh per year. If your total income is tax-free, you can request that the renter not deduct TDS using Form 15G or Form 15H. (applicable from 1 April 2019).
4. TDS on income from corporate bonds – If your income from corporate bonds exceeds Rs 5,000, TDS will be deducted. You can request that TDS not be deducted by submitting Form 15G or Form 15H to the issuer.
5. LIC premium receipts: Starting in October 2014, if the amount received from a policy exceeds Rs 1 lakh and is taxable, the insurer must subtract 2% TDS before paying. TDS is 5% on the amount of income comprising the profits paid or payable upon maturity as of September 1, 2019. Because your total income is zero, you can submit Form 15G/Form 15H to request that no TDS be deducted.
6. TDS on Insurance Commission: If the insurance commission exceeds Rs 15000 per financial year, TDS is deducted. Insurance agents, on the other hand, can file Form 15G/Form 15H to request a non-deduction of TDS if their total income is tax-free (with effect from 1 June 2017).

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Best Time to Submit 15G and 15H Forms

Forms 15G and 15H are only valid for a single financial year. As a result, please submit these documents each year at the start of the fiscal year. This will ensure that no TDS is deducted from your interest income by the bank. Due to the spread of COVID-19, taxpayers may not be able to submit forms in the first week of April 2020 for FY 2020-21. As a result, the government has extended the validity of Forms 15G and 15H until June 30, 2020, from March 31, 2020. In the first week of July 2020, taxpayers can submit Forms 15G and 15H. The Form 15G and 15H submitted for Financial Year 2019-20 will be regarded as valid documentation of non-deduction of TDS for the period beginning April 1, 2020, and ending June 30, 2020.

Procedure to Fill Form 15G

Fill in the form with all the required information as given below:

Name of Declarant:  Enter your name as it appears on your income tax documents

Pan Number: Enter your PAN number as it appears on your PAN card.

Past Year: Enter the current fiscal year for which you are filling the form.

Status: Enter whether you’re a single person or a HUF,

Residential Status: Residents can only fill out this form. Here you can check your residency status.

Address Details: Fill in the address information, as well as the PIN code, email address, and phone number.

PF Correction Form 

Is there a Tax Assessment under the Income Tax Act of 1961?

If you earned more than the taxable limit in any of the previous six years, respond yes to this question.

If yes, state the most recent assessment year for which you were assessed – this should be the most recent year in which your income exceeded the taxable limit.

Total income for the past year, including income from column 16

 Calculate your entire annual income from all sources, including your salary, stipend, interest income, and any other sources of income. Take into account the income mentioned in paragraph 16 above.

Expected Income for which a Declaration is made:

Put in the amount of interest or other income from which TDS is not to be deducted.

Other 15Gs Form

If there were any other Form 15Gs filed during the past year, please list them below, along with the total number of Form 15Gs filed for that year.

Also, indicate the total income for which Form 15G was filed, as well as the aggregate amount of income for which Form 15G was filed.

The amount of money you make:

Provide your fixed deposit account number, recurring deposit information, NSC information, and life insurance policy number, etc. (Many of these are taxed under section 56 of the Income Tax Act.)

Fill in the information of the income for which a tax return is being filed:

The number of the applicable investment/account, etc. The type of income, the section of the tax that is deductible.

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When Should We Not Submit the Form

If your income has to be combined with someone else’s, do not file Form 15G. The interest income from an FD for a non-working spouse or child must be combined with the depositor’s income. In this circumstance, Form 15G is no longer valid. The depositor’s PAN is required, and TDS must be deducted in the depositor’s name.

Deductors Should be Aware of the following Information

The Income-tax Act mandates you to assign a Unique Identification Number or UIN to everyone who files Form 15G/Form 15H if you are a TDS deductor. You must file a quarterly Form 15G/Form 15H statement and keep these forms for seven years.

Have you Forgotten to Submit Form 15G or Form 15H?

Many taxpayers neglect to file Forms 15G and 15H on time. In this case, the TDS may have already been deducted by the bank. You can perform any of the following, depending on your scenario.

• Submit Forms 15G and 15H as soon as possible.

Start filing your return to get a refund for any excess TDS deducted. TDS is deducted by most banks every quarter. Don’t worry if you forget to submit Form 15G or Form 15H. So that no TDS is deducted for the remainder of the financial year, submit it as soon as possible.

• To Get a Refund of TDS, You must File a Tax Return.

TDS cannot be refunded by banks or other deductors because it has already been deposited with the IRS. After you file an income tax return, the IRS will refund any extra TDS. The only way to get a refund for extra TDS is to file an income tax return.

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