Form 15G/ 15H

Your total income is not taxable and your bank is still deducting TDS on your Income ?
Are you filling your Income Tax Return only for the refund of tax which has been deducted by your Bank?
Are you concerned about the hardship and money that has been charged by your CA/Advocate for filling Income Tax Return.
Then this article is for you. You can save your tax which is to be deducted by bank using Form 15G/15 H. Let's learn all about Form 15G & 15H
When does a bank deduct TDS on interest?
  • If your age is less than 60 years then banks have to deduct TDS when your interest income is Rs.40,000 or more during the financial year.
  • If your age is 60 years or more then banks have to deduct TDS when your interest income is Rs50,000 or more during the financial year.
  • The Bank adds deposits held in all its branches to calculate this limit. 

What is Form 15G & 15H?
  • Form 15G/H are forms which you can submit in order to avoid your deduction of TDS by banks on your interest income.
  • Form 15G is for individuals whose age is less than 60 years.
  • Form 15H is for individuals whose age is 60 years or more (senior citizens)
  • Form 15G/H are valid for 1 financial year.

What are the Criterias for submission of Form 15G & Form H?

  • You are an Individual or HUF.
  • You are a Resident Indian as per Income Tax Act.
  • You are holding a PAN.
  • Tax calculated on your total income is NIL.
  • Total interest income for the year is less than the basic exemption limit which means total interest income should not be exceeding Rs.2,50,000 for financial year 2019-20.
  • Examples:
    • Nimisha, a resident individual whose age is 22 years is earning Rs.265,000 including a bank interest of Rs.65,000.
    • Since her tax on Rs.2,65,000 is nil AND her Interest income is less than Rs.2,50,000 she is eligible to submit Form15G.
    • Let's take another example, Miss Navya who is a resident individual age 19 years & is earning Rs.251,000 solely from the Bank as Interest on Fixed Deposit.
    • Although her Tax on her total income will come to NIL but since her interest income is exceeding Rs.2,50,000 she is not eligible to submit Form 15G.

What are the other purposes for which Form 15G/H can be submitted?

  • TDS on EPF Withdrawls:- TDS is to be deducted if you withdraw more than Rs.50,000 AND before 5 years of continuous service. You can avoid this deduction by submitting Form 15G/H only after full filing above criteria.
  • TDS on income from corporate bonds.
  • TDS on Post Office deposits.
  • TDS on Rent:- TDS is deducted on rent exceeding Rs 2.4 lakh annually. If tax on your total income is nil, you can submit Form 15G or Form 15H to request the tenant to not deduct TDS (applicable from 1 April 2019).
  • TDS on Insurance Commision

How to file Form 15G/ 15H ?

  • It can be filed physically as well as electronically.
  • Step 1. Log in to the bank's Internet banking portal with your User ID and Password
    Step 2. Select Tax Section
    Step 3. Click on Form 15G/H
    Step 4. Fill in the necessary details
    Step 5. Click on Submit
    Step 6. Download the acknowledgement slip
    Step 7. Save the Service Request number for your future.
[These Cash Transactions can put you in Income Tax Trouble. Here's list of transactions that are totally unsafe for you → Unsafe Cash Transactions]
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[Disclaimer:-This article is being furnished for informational purposes only. We make every effort to use reliable & comprehensive information, but we do not represent that the contents of the article are accurate or complete.]


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