Form 15G and Form 15H are simple self-declaration to the Banker by an individual which allows them to earn interest on their savings/fixed deposit accounts without being taxed. This declaration can only be submitted if the estimated revenues from all channels are less than or equal to the basic exemption level recommended by the Indian Income Tax Department. A legitimate PAN, or Permanent Account Number, is essential for the customer to file Forms 15G and 15H.
Who is eligible to file Form 15G and Form 15H?
The Form 15G and Form 15H eligibility conditions are as follows:
- You must be a person or a legal organization that is not a company or a partnership.
- You must be an Indian citizen for the whole fiscal year in question.
- You must be less than 60 years old to qualify for Form 15G and more than 60 years old to qualify for 15H.
- The tax due is nil based on total tax liabilities for the financial year.
- The total amount of interest revenue collected throughout the financial year must be below the basic exemption threshold.
- A Permanent Account Number is needed.
Where can you submit Form 15G and Form 15H apart from banks?
To indicate TDS non-deduction, Forms 15G and 15H can be submitted at any of the below locations apart from banks:
- Employees Provident Fund Organization on the day of the early withdrawal of the Provident Fund
- Companies that offer corporate bonds
- Insurance agents to insurance companies
- Post Office
It should be emphasized that this letter does not exclude you from paying income tax. It merely delays down the procedure. Form 15G states that the bank is not obligated to collect TDS from your fund and that you will submit your tax amount directly when you file your annual income tax returns. If you do not supply this documentation, you might still request a reimbursement from the Income Tax Department for the additional TDS deducted from your bank account.
Also, please bear in mind that you are not required to personally provide this paperwork to the income tax division. Just give these to the organizations listed above, and they will prepare and transmit the papers to the Tax Division on your behalf.
TDS Rates
| Investment | Income Tax Act Section | Basic Threshold | TDS rate with PAN details submitted to Deductee | TDS rate without PAN details submitted to Deductee |
| Bank FD Interest | 194A | 10,000 INR | 10% of total income | 20% of total income |
| Premature EPF withdrawal | 192A | 30,000 INR | 10% of total income | 34.61% of total income |
| Corporate Bond Earning | 193 | Nil | 10% of total income | 20% of total income |
| Income from Dividends | 194 | 2,500 INR | 10% of total income | 20% of total income |
| Income other than Security Interest | 194A | 3,000 INR | 10% of total income | 20% of total income |
What are the Differences between Form 15G and Form 15H?
| Form 15G | Form 15H |
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What happens if you forget to submit Form 15G or 15H?
Many taxpayers fail to file Forms 15G and Form 15H on schedule. In this case, the bank may have effectively collected the TDS. You can perform any of the below depending on your scenario.
- Submitting your tax return is the only option to request a reimbursement of excessive TDS paid. TDS cannot be refunded to you by banks or other financial institutions since it has already been submitted to the tax authority. After you submit your tax return, the income tax division will reimburse any excessive TDS.
- File Form 15G and Form 15H as soon as possible. TDS is typically deducted quarterly by most institutions. Don’t panic if you fail to file Form 15G or 15H by then. Submit it as soon as possible so that no Tax is charged for the remainder of the fiscal year. Begin submitting your tax return to receive a reimbursement of excessive TDS paid. Click here to know more.
Note for Deductees
As a TDS collector, the Indian Income-tax Act mandates you to assign a UIN i.e. Unique Identification Number to each person who completes Form 15G or Form 15H. Form 15G and Form 15H statements must be filed quarterly, and these documents must be kept for 7 years.
Conclusion
The Income Tax Department has urged that you need to fill up Form 15G and Form 15H along with self-declaration of the bank account into which the TDS has been deposited. The most critical aspect is that there are no gaps in your information regarding tax deducted by your bank. It sometimes happens that due to a change of address or other problems, people sometimes forget to fill this form.
