All about Form 15G and Form 15H

Forms 15G/15H are self-declaration forms that must be provided by the Assessee to his banker in order for Tax Deducted at Source on interest on recurring deposit/fixed deposit at a lower or nil deduction. Form 15G is used for the person who is below the age of 60 years, and Form 15H is used by the person who is above 60 years. In this blog there will be detailed information on filing of income tax form 15G and 15H.

What is Income Tax Form 15G/15H?

If an Indian citizen wishes to be free from TDS on interest earned on their deposits, he or she must complete Form 15G before the validity period expires. You should file Form 15H if you are a senior citizen; however, you must meet certain eligibility requirements. The forms can also be submitted online using the bank’s official website. To apply for exemptions, you must have a PAN (Permanent Account Number).

Both Form 15G and Form 15H are only valid for the current fiscal year. As a result, you must submit the forms at the beginning of each fiscal year to avoid TDS being withheld from your interest earnings.

Points to Keep in mind for Form 15G /15H

• Non-residents are unable to use Forms 15G and 15H because they are only applicable to the residents of India.
• An entity is unable to file Form 15G despite the fact that his overall income is tax-free because his interest income exceeds the basic exemption limit.
• Only form 15G and not form 15H are subject to the condition of interest income exceeding the basic exemption level.
• Senior citizens can file Form 15H even if their interest income exceeds the basic tax exemption level, as long as their taxable income (after deductions) is less than the exemption limit.

Transactions that are eligible for filing Income Tax Form 15G/15H

• If your rental income is INR 2,40,000 or more during the year and your tax is deductible as a result, you can file Form 15G or Form 15H, depending on your situation.
• Tax Deducted at Source (TDS) is deducted from corporate bond revenue over INR 5,000. Form 15G or Form 15H can be sent to the issuer to request that the TDS amount not be deducted.
• Tax Deducted at Source is required to be deducted if the dividend income exceeds INR 2,500. For this Form 15G or Form 15H is filed for the lower or nil deduction.
• Tax Deducted at Source (TDS) is also deducted at digitized post offices if certain conditions are met. Requests for non-deduction of any appropriate TDS amount can be made using Form 15G or Form 15H.

Important points need to be taken care of for the filing of Form 15G/15H

• These forms must be submitted at the beginning of each year.
• Obtain a copy of the acknowledgment to work as proof in case of a future dispute with the bank.
• PAN must be quoted to avoid TDS (Tax Deducted at Source) deduction at the higher rate of 20 percent.

How to file Form 15G for PF withdrawal?

The EPFO portal now allows you to submit Form 15G online when filing an EPF (Employee Provident Fund) withdrawal claim. For non-deduction of TDS, you can also fill out and send a physical copy to the EPFO regional office.

• Log in to the EPFO UAN portal
• Go to Online services > Online Claim,
• Fill in the required information
• Verify the last four digits of the phone number
• EPF withdrawal form will appear.

You will be able to upload form 15G on the screen. Form 15G can be downloaded from this page. Fill out Part 1 of the form and save it as a PDF file. When filing an online claim, upload a PDF copy of the form.

FAQs on Form 15G and Form 15H

1. Is it necessary for me to submit Form 15G/ 15H to all of the bank’s branches?

Yes, you must submit one at each bank branch where you get interest income, although TDS (Tax Deducted at Source) is only deducted when the total interest earned across all branches surpasses INR 10,000.

2. What is the validity of Form 15G and Form 15H?

Form 15G and Form 15H are valid for one financial year, after that taxpayer needs to submit the Form at the starting of the financial year.

3. Is it possible for NRIs to self-declare using Forms 15G and 15H?

No, Forms 15G and 15H can only be submitted by resident Indians, not non-resident Indians, according to the laws and regulations.

4. Is there a deadline for filling out Form 15G/15H?

There is no deadline for filing Form 15G or Form 15H. However, it is advisable that you file the form at the start of the financial year (FY) because the validity of the Form is for a year only.

5. Is it necessary to file Forms 15G and 15H with the Internal Revenue Service?

The Income Tax Department does not require you to submit Form 15G or Form 15H. You can hand over the forms to the deductor, who will subsequently forward them to the IT Department.

Conclusion

It’s vital to remember that in all of these circumstances, the overall taxable income standards must be met for both the 15G Form and 15H Forms. As a result, it is critical to grasp the various tax exemptions and deductions available while keeping the tax-free income limit in mind.