Tax and Law Advisor

How Form 15G/ 15H is useful to save TDS

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Generally banks have to deduct TDS on interest income is more than Rs. 10,000( Rs. 50,000 for the senior citizen) in a year. But if the income of a taxpayer is below the limit then taxpayer can submit Form 15G/15H to the bank for not to deduct TDS on interest. In this article we will explain Form 15G / 15 H and its useful aspects.

What is Form 15G and 15H

It is a kind of declaration form submit to the bank to avoid the TDS on interest income. Taxpayer request the bank not to deduct TDS on interest income as the total income of the taxpayer is below the basic tax exemption limit. This form is valid for only one year.

Form 15H is for Senior citizen (age 60 years or more) and Form 15G is for other than senior citizen.

Eligibility Criteria to file Form 15G/ 15H

i ) Applicability to file this form is for Individual, HUF, AOP.

  1. ii) Applicant should be resident

iii)Tax calculated on total income should be NiL

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  1. vi) Bank F.D. Interest income should not exceed basic exemption limit (i.e Rs 2,50,000). Otherwise the bank will deduct TDS though you have submitted 15G.
  2. iv) Tax calculated on total income should be NiL.
  3. v) The assessee can submit 15H, even if the interest income exceed basic exemption limit, provided the tax paid on total income for the relevant previous year is NIL.
  4. vi) Assessee have to submit this form in the beginning of the financial year to avail the benefit of non deduction of TDS.

vii) The assessee should mention its PAN on their respective forms.

viii) This form must submit at each branch of the bank from which you will receive interest income.

Note:-If a customer submits this form after deducting TDS the bank will not refund it as the bank has already transferred it to Income tax department. If TDS is deducted, the customer can get back as a refund only by filing the Return.

Apart From TDS on Interest (other Than Interest on Securities) U/s 194A, there are other income for which the assessee can submit Form 15G/ Form 15H for non-deduction of TDS, namely,

Income Section under which the Tax is to be deducted Eligible Assessee Exemption Limit above which  TDS is to be deducted (Rs)
premature withdrawal of provident fund U/s 192A only for individuals 50,000 or more
Interest On securities  U/s 193 Any assesee other than company or firm 5000 in few special cases it is 10,000
Rent U/s 194I Any assesee other than company or firm 180,000
Dividend U/s 194 Resident Individuals 2,500
Payment In respect of Life Insurance Policy 194DA Any assesee other than company or firm 1,00,000
Insurance Commission U/s 194D Any assesee other than company or firm 15,000
National Saving Scheme U/s 194EE only for Resident Individuals 2500

No need to submit Form 15G/15H if such income has to be clubbed with the income of another person.

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