Form 15G & Form 15H - Parts, Usage and Eligibility

 

There are several sources of income which attract TDS deductions such as fixed deposits, recurring deposits and EPF. Tax Deducted at Source (TDS) is levied on interest income if it exceeds Rs. 40,000 in a financial year. For senior citizens, the limit is Rs. 50,000. But what happens if TDS is deducted on a total taxable income below Rs. 2.5 lakh?

You can submit either Form 15G or 15H to banks to ensure that no TDS is deducted from your term deposit interest. The difference is that Form 15G is submitted by HUF (Hindu Undivided Family) and individual tax payers less than 60 years of age whereas form 15H is submitted by senior citizens.

What Are Form 15G and Form 15H? 

Form 15G is a declaration form which an eligible person (individual, HUF, etc.) can submit to make sure that no TDS is deducted from their annual interest income. This form is applicable for income from fixed deposits, recurring deposits and employee provident funds (EPF).

People use this form to state their total taxable income and declare that it is within the tax-exempt limit. The limit is Rs. 2.5 lakh under the old regime for individuals below 60 years of age and Rs. 3 lakh under the new regime. Form 15G is for individuals below 60 years of age and HUFs.

Similarly, Form 15H is also a self-declaration form which can be submitted by senior citizens (over 60 years of age) to get rid of TDS liability. The tax payable for such income by the individual must be nil.

What Are the Differences Between 15G and 15H?

Here are the differences between Form 15G and Form 15H discussed in a tabular format.

Important features of Form 15G & 15H

Here are some of the key features of Form 15G:

• It must be submitted before the interest payout is made by the bank.
• Individual taxpayers of age below 60 years can file this declaration form along with HUFs and trust entities.
• Only an Indian resident can be eligible to avail this benefit.
• If deposits are initiated physically from branches, they must be submitted to all the branches where you have deposits.
• You can only become eligible if your total taxable income is within the tax exemption limit, i.e. below Rs. 2.5 lakh.
• If you opt for the new tax regime, the tax exemption limit is Rs. 3 lakh.

Here are some of the key features of Form 15H:

• You can submit this form only if you have attained the minimum age of 60 years i.e. one must be a senior citizen.
• Your taxable income must be below the basic exemption limit. This is Rs. 3 lakh for individuals above 60 years of age and Rs. 5 lakh for individuals above 80 years of age.
• If your annual interest income exceeds this limit, you can still file Form 15H provided that your tax liability is ‘nil’.
• If the deposit account is initiated physically from branches, the form must be submitted to all the deposit-bearing branches.
• Ideally, one must submit the form while opening the account and help you to get rid of a long waiting period of ITR processing to get your refund.
• Form 15H is required where the interest amount exceeds Rs. 50,000 in a financial year. It is also required if you have investments in debentures and bonds and the interest for these securities cumulatively exceeds Rs. 5,000 in a fiscal year.

Example to Understand Who Can Submit Form 15G & Form 15H

Here in this table, we have illustrated the applicability of Form 15G and Form 15H across various age groups and scenarios.

Note:

• The 30-year individual with a total taxable income of less than Rs. 2.5 lakh is eligible for Form 15G.
• The individual at the age of 50 years with a total taxable income exceeding Rs. 2.5 lakhs is disqualified from filing Form 15G.
• The 62-year-old person with a total income exceeding Rs. 2.5 lakh but below Rs. 3 lakhs is eligible for Form 15H.
• The individual at the age of 81 years (super senior citizen) with a total income of less than Rs. 5 lakh is eligible for Form 15H.

Eligibility Criteria for Form 15G Submission & Form 15H Submission

Eligibility Criteria for 15G

You can be eligible for Form 15G if you meet the following criteria. Here are the eligibility criteria for Form 15G:

• The total taxable income should not exceed Rs. 2.5 lakh.
• The individual must be an Indian citizen and of age less than 60 years.
• Hindu Undivided Families (HUFs) with an annual income not exceeding Rs. 2.5 lakh are also allowed to submit Form 15G.
• There should not be any tax liability for that financial year.

Eligibility Criteria for 15H

Here are some of the eligibility criteria for Form 15H:

• The declarant should be an Indian citizen.
• Their net tax liability must be Nil.
• The declarant must be of age 60 or above.

When Should You Submit Form 15G & Form 15H?

Ideally, you should submit the Form 15G or 15H at the beginning of the fiscal year. However, you must ensure that your total taxable income does not exceed the tax-exempt amount i.e. Rs. 2.5 lakhs, Rs. 3 lakhs or Rs. 5 lakhs as per the applicability. It can help you to avoid the TDS on interest income during a financial year.

Exception: In the fiscal year 2020-21 the Government of India provided a relaxation of one quarter for submitting Form 15G and Form 15H. Hence the form submitted for the fiscal year 2020-21 was valid up to 30^th June 2021.

What to Do if I Forget to Submit Form 15G or 15H on Time?

Forgetting to submit Form 15G and Form 15H can be common among people as it is an annual activity. Due to this if TDS is deducted by the bank, you can take the following actions:

• Immediately Submit Form 15G or 15H:

All you can do is submit Form 15G/15H immediately to avoid any further deduction in future. Moreover, a period of 90 days is allowed for the declarant to submit the form for the new fiscal year. Hence if you have forgotten to submit the form then make sure to submit the same within the next quarter.

• File IT Returns:

Filling IT returns can provide you with an estimate of your taxable income and allow you to claim tax refunds. The TDS deduction for the last year appears in Form 26AS, it also includes the amount of TDS by the bank or the amount of interest received.

This deducted TDS amount must be adjusted with your total tax liability. If you are eligible for Form 15G or 15H the deducted amount shall either be adjusted with your total tax liability or returned to you as a refund.

What Are the Different Parts of Form 15G?

The Form 15G is comprised of two parts: Part 1 and Part 2

Part 1 of Form 15G is shown in the figure given below:

In Part 1 of Form 15G, there are multiple fields which are to be filled out by the declarant to avoid TDS deductions. Some of the fields are as follows:

• Name of the assessee
• PAN
• Mobile number
• Email
• Address
• Residential status
• Aggregate income amount
• Estimated total income of the previous year
• Date
• Signature of the declarant

Part 2 of the Form 15G is given below:

In Part 2 of the form, there are fields such as:

• Bank details or tenant name that is responsible for providing information about the declarant (individual or entity)
• TAN details
• Amount of income paid
• Complete address
• Date of declaration
• Unique identification number
• Email ID and telephone/mobile number

How to Fill out Form 15G?

There are some banks or financial institutions which allow you to fill out Form 15G and Form 15H online. You can complete the declaration by furnishing the following details:

1. Enter your name and PAN

2. Type in the taxpayer’s status (individual, HUF or a trust)

3. Enter the previous year for which you are filing the declaration.

4. Fill in your residential status for the previous year.

5. Next, enter your contact details (email and mobile number) and full residential address.

6. In Option A, choose "Yes" in case your total taxable income exceeds the maximum exemption limit.

7. You have to mention the latest year when your taxable income exceeded the maximum exemption limit.

8. Enter the estimated income for the current previous year for which the declaration has been made.

9. Enter the estimated total income for the current previous year.

10. Fill in the details of other forms such as Form 15H or Form 15H which has been entered in the previous year.

11. You will have to provide the details of income such as nature, income sources, income tax sections, etc. for which the declaration has been filed.

What are the Different Parts of Form 15H?

Like Form 15G, Form 15H is also composed of two parts, Part 1 and Part 2.

The Part 1 of the form is shown below:

 

Part 1 of 15H has to be filled by the Indian resident individuals who are 60 or above and claiming a non-deduction of tax due to their annual income below the taxable limit as per applicable income tax slabs and rates.

• Name and contact details of the assessee
• PAN or Aadhaar
• Total number of Form 15H submitted
• Estimated income
• Estimated total income in the previous year

The Part 2 of Form 15H is shown below:

Here are some of the fields to be filled in Part 2 of Form 15H:

• Name, contact details and address of the person responsible for paying
• Unique identification number
• PAN number or Aadhaar number
• TAN of Deductor
• Income paid for the fiscal year

Places Where Form 15H and 15G Can Be Submitted

Other than banks, here are some of the places from where Form 15H and 15G can be submitted:

• Insurance companies
• Post offices
• Online income tax portal
• Income tax department offices
• Employer’s offices

How to File Form 15G and 15H Online?

An assessee is required to submit Form 15G or 15H received quarterly on the e-filing website. He/she must quote the sequence number in the TDS statement even if no TDS has been deducted.

Here is the step-by-step guide to filing Form 15G & Form 15H online via the official e-filing website of the Income Tax Department.

Step 1: Navigate to the income tax e-filing website.

Step 2: Then, simply click on ‘e-file’ and then click on ‘Prepare & Submit Online Form’.

Step 3: Generate the XML zip file by selecting Form 15G/Form 15H (Consolidated).

Step 4: For filing Form 15G or 15H, it is essential to have a Digital Signature Certificate (DSC). Create the signature for the zip file using the provided utility.

Step 5: Subsequently, use your TAN to log in to the income tax website.

Step 6: Navigate to e-File and submit Form 15G/15H.

Step 7: Choose the form name, financial year, quarter, and filing type.

Step 8: Then, click on ‘validate’ and attach the ZIP and signature files, generated through the Digital Signature Certificate utility.

Step 9: To complete the process, download the DSC Management Utility and click on “Upload”. A success popup will appear on your screen upon successful upload.

How to check the Filing Status?

Here are the steps guiding you to check your filing status:

Step 1: Navigate to the ‘My Account’ section and select ‘View Form 15G/15H’ to access the filing status.

Step 2: The statement status will be initially marked as ‘Uploaded.’

Step 3: Then, the uploaded file will be processed followed by its validation.

Step 4: Following validation, the status will be updated to either ‘Accepted’ or ‘Rejected’ within 24 hours of the upload.

Step 5: Accepted statements are forwarded to CPC-TDS for further processing.

Step 6: If the status is ‘Rejected’, the rejection reason will be stated, and a corrected statement should be re-uploaded.

Things to Remember while Filing Form 15G & Form 15H

 Here are some of the things to keep in mind while filing Form 15G or 15H:

• Consider not filing Form 15G if your total taxable income exceeds the basic exemption limit.
• A resident senior citizen can claim a TDS exemption by filing Form 15H even if his/her taxable income exceeds the exemption limit. However, his/her total tax liability u/s 87A must be zero.
• If the submission of the form is found to be fraudulent, the assessee can be penalised under section 277 of the Income Tax Act, 1961.
• NRIs (Non-resident Indians) are not eligible for submission of Form 15G or 15H.
• Please note that this declaration form is not a substitute for your IT return as you will have to file your income tax return separately.

Form 15G and Form 15H are offered to individuals who make a limited sum of money as interest income. By filing the applicable form, one does not have to go through the hassles of filing tax returns if his/her taxable income is below the exemption limit. You can find this form at any bank or post office website.

FAQs about Form 15G & Form 15H

1. What is the difference between Form 15G & Form 15H?

Ans. Form 15G is applicable for individuals below 60 years of age, HUFs and trust entities. Meanwhile, Form 15H is applicable only to individuals aged 60 or more.

2. What happens if I have submitted Form 15G/Form 15H but I also have taxable income?

Ans. If you have a taxable income and submitted any of the forms by mistake, the form will be invalid and you will have to pay taxes. This taxable income will also include the interest income earned during the year.

3. What is Form 15G used for?

Ans. Form 15G is used for the purpose of declaring your annual taxable income to avoid TDS liability from interest income generated from fixed deposits, recurring deposits or EPF. It is a declaration form under Section 197A of the Income Tax Act.

4. Do I need to submit Form 15G/Form 15H at all bank branches?

Ans. Yes, you have to submit the form at all bank branches where you have an interest-bearing deposit. Apart from banks, you can also submit these forms in a post office if you are holding an interest-bearing deposit account with them.

5. Will my interest income become tax-free if I submit Form 15G/Form 15H?

Ans. If the interest income in a year exceeds Rs. 40,000 (Rs. 50,000 for senior citizens) in a financial year, TDS is levied. However, if your total income is below the tax-exempt limit i.e. Rs. 2.5 lakh, you can avoid TDS deductions by submitting Form 15G or 15H.

6. If I am an NRI, should I submit Form 15G & Form 15H?

Ans. If you are an NRI, you are not eligible to submit Form 15G & Form 15H as a declaration to avoid TDS deduction. Only an Indian resident is eligible to avail the benefits. Therefore if you are an NRI, TDS deductions are compulsory on your interest income.

ARN –INT/ED/12/23/7208