Who should file Form 15G or Form 15H

Know Who should file Form 15G and Form 15H?

Form 15G and Form 15H are self declaration forms that the assessee submits to the bank requesting not to deduct TDS on Interest Income, as their income is below the basis exemption limit. The assessee has to provide his PAN Card with the form.

Who has to submit Form 15G and Form 15H?

FORM 15G

FORM 15H

The assessee must be below 60 years of age by the end of FY of form submission.

The assessee must be senior citizen i.e, he must be above 60 years of age by the end of FY of form submission.

The assessee’s total taxable income must be below the taxable limit during the relevant financial year.

The assessee’s net taxable income must be below the taxable limit during the relevant financial year.

The assessee’s income from interest on fixed deposits, etc must be below the taxable limit during the relevant financial year.

The assessee’s income from interest on fixed deposits may or may not be below basic exemption limit not chargeable to tax

The assessee must be either a Resident Individual or HUF  or tust (not a firm or company)

The assessee must be a Resident Individual


The assessee must make sure to submit his Form 15G or Form 15H, as the case may be, with the bank right at the beginning of the Financial Year to avoid unnecessary TDS on interest accruing to him. If excess amount gets deducted or if the assessee is eligible for non-deduction of TDS but the amount has been deducted, then he can claim for a refund at the time of filing of Income Tax Return.

Also Read: Know about tax saving 5 years fixed deposits

Illustration:

Name

Ram

Lakshman

Karan

Arjun

Age

45 years

18 years

70 years

65 years

Residential Status

Resident

Resident

Resident

Non-Resident

Salary

Rs. 2,00,000

Pension

Rs. 1,00,000

FD Interest

Rs. 92,000

Rs. 2,80,000

Rs. 3,90,000

Rs. 1,50,000

Total Income Before Allowing Deductions under Section 80

Rs. 2,92,000

Rs. 2,80,000

Rs. 3,90,000

Rs. 2,50,000

Deductions under section 80

Rs. 45,000

Rs. 40,000

Rs. 1,30,000

Rs. 20,000

Taxable income

Rs. 2,47,000

Rs. 2,40,000

Rs. 2,60,000

Rs. 2,30,000

Minimum exempt income

Rs. 2,50,000

Rs. 2,50,000

Rs. 3,00,000

Rs. 3,00,000

Eligible to submit Form 15G

No

No

Yes

No

Eligible to submit Form 15H

No

No

Yes

No

Age less than 60 years

Yes

Yes

No

No

Age more than 60 years

No

No

Yes

Yes

Tax on total income is Nil

Yes

Yes

Yes

Yes

Interest income is less than basic exemption limit

Yes

No

N.A.

N.A.

Form to be submitted

Form 15G

Cannot Submit

Form 15H

Cannot Submit

Reasons

All the conditions are satisfied

The interest income on Fixed Deposits is above the basis exemption limit

All the conditions are satisfied

Not applicable in case of non residents

In the above case,
For Ram:
– He is below 60 years of age.
– His income is below the taxable limit during the relevant financial year.
– The interest earned on Fixed Deposits is below the exemption limit.
– He is a Resident of India.
Therefore, Ram can submit Form 15G

For Lakshman:
– He is below 60 years of age.
– He has no income from salary.
– His income from interest on Fixed deposits is above the exemption limit.
– He is a resident of India.
Since, Lakshman’s income from interest on Fixed Deposits is above the exemption limit, he cannot submit Form 15G.

For Karan:
– His age is above 60 years of age.
– He has no income from salary/pension.
– His net taxable income is less than the exemption limit.
– He is a Resident of India.
Therefore, Karan is eligible to submit Form 15H. Even if the income from interest exceeds the exemption limit, the net taxable income is below the exemption limit.

For Arjun:
– He is above 60 years of age.
– His income from pension is below the exemption limit.
– His net taxable income is less than the exemption limit.
– He is not a resident of India.
Since, Arjun is not a resident of India, he cannot submit Form 15H.

Note: In the above illustration, the assessees have opted for Old Tax Regime. The exemption limit for assessees below 60 years of age is Rs. 2.5 lacs and for assessees above 60 years of age, the exemption limit is Rs. 3 lacs.

Also Read: Which Tax Regime Suits You: Old or New?

Conclusion:

FORM 15G & FORM 15H

Additionally, Form 15G and Form 15H can also be filled in other cases involving TDS such as:
– Withdrawals are made of a value more than Rs. 50,000 from an EPF account for a service period below 5 years provided that the earlier conditions are met.
– Income from corporate bonds exceeding Rs. 5,000.
– Interest from Post Office Deposits exceeding Rs 10,000.
Rental income exceeding Rs. 2.4 lakhs annually.
– Insurance commissions exceeding Rs. 15,000.

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