Form 15G and 15H to Save TDS on Interest Income

While deducting TDS on interest in the bank, we have often heard that if TDS is not to be deducted then submit 15G or 15H Form, but do you know that 15G or 15H Form can be issued in case of income other than interest also. Or what is 15H Form and who can issue it?

What Is Form 15G and 15H

In simple language, there are 15G or 15H self-declaration forms which are given by those persons whose taxable income is Nil and their TDS is being deducted, then that person cannot deduct his TDS and submit Form 15G or 15H. In which he submits the person who is making the payment and is liable to deduct TDS for not deducting TDS.

Who Can Issue or Submit

Who can issue Form 15G & 15H depends on the following things: Who is the person, what is his age and what is his residential status.

• The person issuing FORM 15G or 15H must have PAN. The person who does not have PAN cannot issue this form.
• FORM 15G – Those whose age is less than 60 years can issue
• FORM 15H – Those whose age is more than 60 years can issue

Type Of Income Where Form 15G / 15H Can Issue

The income on which TDS can be avoided by issuing 15G/15H are as follows:

Section	Nature Of Income	Form 15 G		Form 15 H
		Individual <60	HUF / AOP / BOI / Other [ Except Firm & Company ]	Individual >60+
194	Dividends	YES	No	YES
194EE	Payments in respect of deposits under National Savings Scheme, etc.	YES	No	YES
192A	Payment of accumulated balance due to an employee	YES	YES	YES
193	Interest on securities	YES	YES	YES
194A	Interest other than Interest on securities	YES	YES	YES
194D	Insurance commission	YES	YES	YES
194DA	Payment in respect of life insurance policy	YES	YES	YES
194I	Rent	YES	YES	YES
194K	Income in respect of units / Mutual Fund	YES	YES	YES

If payment to Non Resident Individual is covered under section 195, hence NRI cannot issue 15G or 15H.

Are there other conditions for issue?

You can issue Form 15G [less than 60 years] only if you fulfill these two conditions.

1. Tax on your Estimated Total Income should be Nil

1. II) And the payment made in the sections of TDS discussed in the table above should be less than the basic exemption limit. If payment is being made in more than one section by the same person, then it should be less than the basic exemption limit.

Example – ABC company gives Rs. 1,40,000/- Rent and Rs. If you pay interest of Rs. 60,000/- then total payment will be Rs. 2,00,000/- is less than the basic exemption limit, then in this case Vinod can issue/submit Form 15G.

You can issue Form 15H only if you fulfill these 1 conditions.

Tax on your total estimated income should be Nil

1- Rs 2.5 lakh in case of Individual Male [less than 60 years]

2- Rs 3.0 lakh in case of Senior Citizen [more than 60 years less than 80 years]

3- Very Senior Citizen Rs 5.0 lakh [above 80 years]

• Company
• Firm
• If you are NRI then you cannot issue it [TDS is Deducted U/s 195]

Form 15G 15H is in 2 parts

Part I – Filled by the person who does not want to deduct his TDS
Important points to be kept in mind while filing the form

• From point no 01 to 14, basic information of the assessee is given which includes information like Name, Address, PAN, or Residential Status, and for which previous year the form is being filed etc.
• Point No 15

• Whether assessed to tax under the Income-tax Act, 1961:

[  ] YES   [   ] NO

“If you have filed income tax return in the last 6 years and your income was more than the taxable limit in any year within these 6 years, then you should tick “yes” here otherwise “no”.

(b) If yes, latest assessment year for which assessed

If you have ticked yes then 6 years is the latest year in which your income was more than the taxable limit.

Example:

Form Filing For F.Y. 2023-24 ( Assessment Year 2023-24 ]
S.no	FY	AY	Income Reported (In Rs.)	Exemption Limit (In Rs.)
1	2021-22	2022-23	150000	250000
2	2020-21	2021-22	200000	250000
3	2019-20	2020-21	350000	250000
4	2018-19	2019-20	450000	250000
5	2017-18	2018-19	500000	250000
6	2016-17	2017-18	500000	250000

In this case, FY 2019-20 [Assessment Year 2020-2021] is the latest year in which the assessee's income was more than the taxable limit, hence it will be mentioned.

• Point No. 16 Estimated income for which this declaration is made –
• What is your estimated income for the year for which you are filing the form? Example:- You will get Rs. 100 for interest from the person to whom you are submitting this form. 15000/- is estimated then you get Rs. Will write 15000/-
• Point No. 17 Estimated total income of the P.Y. in which income mentioned in column 16 to be included

• Total estimated income for the year for which you are filing this form which also includes the income for which you are filing this form, in this case Rs. You will also have to include interest income of Rs 15000/-
• Point No. 18 -Details of Form No. 15G other than this form filed during the previous year, if any

How many Forms 15G have you submitted this year and what is their amount [Aggregate amount] in which this form will not be included.

• Point No. 19 Details of income for which the declaration is filed
• Information about the Form 15G/15H you have filed
• Identification number of relevant investment/account, etc.

[Here you can find distinctive number of shares, account number of term deposit, recurring deposit, National Savings Schemes, life insurance policy number, employee code, etc. can write]

2-Nature of income

3-Section under which tax is deductible

4-Amount of income

Part II - Point 16 which is to be filled by the person responsible for paying the income

 

Frequently Asked Question

Q.Is there a time limit for submitting Form 15G/15H?
Ans.There is no due-date , but ideally submit it at beginning of each financial year (1st April of each year).

Q.For how long are Forms 15G and 15H valid?
Ans.Both the forms are valid for 1 financial year only.

Q.Is it mandatory to submit Forms 15G and 15H to the Income Tax Department?
Ans. No, You don’t need to hand over Form 15G or Form 15H to the Income Tax Department.

Q.Penalty for submitting false or wrong declaration in Form 15G/15H
Ans. As per Section 277 of the Income Tax Act, a false self-declaration can result in a fine and/or imprisonment. Therefore, do keep in mind that you should only submit your self-declaration through Form 15G if you are eligible

Q.For tax evasion through a false self-declaration of an amount that is more than INR 1 lac, the penalty is imprisonment that can last anywhere between 6 months to 7 years.
Ans.Faulty self-declaration in cases other than the one mentioned above, the penalty is imprisonment that can last anywhere between 3 months to 3 years.

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