Everything About Form 15G And Form 15H

Indiafirst Life
• 05 Jan, 2025

In India, Form 15G and Form 15H are self-declaration forms submitted to prevent tax deduction at source (TDS) on income earned, primarily through interest. Both forms are designed to help individuals, especially those not liable to pay income tax, avoid unnecessary deductions on their earnings. However, they cater to slightly different audiences and purposes.

Here, we look at the purpose and function of these forms, who can use them, and how.

Why Are Form 15G and Form 15H Needed?

The Indian Income Tax Act of 1961 mandates TDS on certain incomes such as bank interest, fixed deposit interest, and other earnings above a specified threshold. For individuals whose total income is below the taxable limit, the deduction of TDS can be an unnecessary burden. It can create a need for refunds through the ITR filing process. Submitting Form 15G or Form 15H ensures that the payer does not deduct TDS, thereby simplifying the process for eligible individuals.

Key Differences Between Form 15G and Form 15H

Knowing the differences between the two forms is essential to understand what form will suit your financial situation:

Criteria	Form 15G	Form 15H
Age Requirement	For individuals below 60 years	For senior citizens (60 years or older)
Taxable Income	Total income must be below the basic exemption limit	Total income must be below the basic exemption limit
Applicability	Residents and certain entities such as trusts	Only for resident individuals aged 60 or above
Use Case	Preventing TDS on interest income	Preventing TDS on interest income for senior citizens

Features of Form 15G & 15H

Go through the following features to understand the suitability of the forms for different individuals and situations:

1. Features of Form 15G

Eligibility: Primarily for individuals below 60 years of age, trusts, and Hindu Undivided Families (HUFs).
Tax Exemption: Applicable when the total income, including interest, is below the taxable limit.
Uses: Commonly used to avoid TDS on fixed deposit interest, life insurance policy payouts, and other incomes.
Relevance for PF Withdrawals: Submitting Form 15G for PF withdrawal prevents TDS if the withdrawal is within the non-taxable limit.

2. Features of Form 15H

Eligibility: Exclusively for senior citizens aged 60 and above.
Ease of Use: Simplifies tax compliance for senior citizens with income below the taxable threshold.
Applicability: Often used to avoid TDS on fixed deposit interest, recurring deposits, and pension incomes.

Eligibility Criteria for Submitting Form 15G and Form 15H

To submit these two forms:

You must be a resident of India.
Your total income (including interest earnings) must not exceed the basic exemption limit.
For Form 15G, you must be under 60 years of age, while Form 15H is only for senior citizens.

Example: Determining Eligibility to Submit Form 15G and Form 15H

Let’s understand Form 15G through an example. Suppose a 45-year-old individual is earning ₹2,40,000 annually, with ₹20,000 from FD interest. Since their total income is below the exemption limit, they can file Form 15G.

Form 15H is meant for senior citizens. Here is how one may find use for it. For a 65-year-old earning ₹3,00,000 annually from pension and ₹40,000 from FD interest, it may be useful. If the total income is non-taxable, they can submit Form 15H.

To understand FD interest values better, try using an online FD calculator that gives out values on the basis of the tenure, deposit amount, and interest rate.

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

These forms should ideally be submitted at the beginning of the financial year to ensure TDS is not deducted on interest payments throughout the year.

Steps To Take upon Missing the Form Submission Deadline

Step 1: Submit Form 15G or 15H as Soon as Possible

You can still submit the forms later in the financial year, although deductions already made will not be reversed.

Step 2: File Income Tax Returns

If TDS is deducted, claim a refund by filing your income tax return using an income tax calculator to determine your total taxable income.

Filling Form 15G

Part A: Contains personal details, including PAN, address, and estimated income.
Part B: Declaration of income details and justification for no TDS deduction.

Here is what you need to know about filling out this form.

Provide your correct PAN details
Mention the nature and amount of income
Ensure accuracy in your calculations to avoid rejection

Filling Form 15H

Part A: Similar to Form 15G, with sections for PAN, address, and estimated income.
Part B: Declaration of income sources and estimated tax liability.

Here are some key tips that senior citizens can follow when filling out this form.

Double-check your age eligibility (60 years and above)
Use precise calculations for interest income and other earnings

Where to Submit Form 15G and Form 15H

You may submit these forms to:

Banks and financial institutions where you earn interest income.
Employers or institutions deducting TDS on eligible income sources such as PF withdrawals or life insurance policy payouts.

Filing Form 15G and Form 15H Online

With digitisation, most banks and institutions allow online submission:

1. Log in to your bank's portal.

2. Navigate to the TDS or tax section.

3. Select the appropriate form and fill it out.

4. Submit after verifying the details.

You may enquire with the bank or financial institution to understand how to fill these offline and whether this option is available.

Checking the Status of Your Form Submission

After submission, track the status through:

Your bank's online portal
Periodic updates sent to your registered email or mobile number
Tax filing software to confirm no TDS is deducted

Key Points to Remember While Filing Form 15G and Form 15H

Keep in mind the following points before you start filling in these tax forms:

Ensure accurate and honest declarations to avoid penalties.
Always provide your valid PAN; failing to do so can attract a higher TDS rate.
Double-check eligibility criteria for each form.
Retain a copy of the submitted forms for your records.

Form 15G and Form 15H are valuable tools for individuals and senior citizens to prevent unnecessary TDS deductions, especially on interest income. Proper understanding and timely submission of these forms can save taxpayers from the hassle of refunds while ensuring compliance with tax regulations.

FAQs

What is the difference between Form 15G and Form 15H?

Form 15G is for individuals below 60 years, while Form 15H is specifically for senior citizens aged 60 or above.

Can I submit Form 15G/15H if I have taxable income?

No, these forms are only for those whose total income is below the taxable limit.

What is Form 15G used for?

Form 15G is primarily used to prevent TDS on income sources like interest on deposits and PF withdrawals.

Do I need to submit Form 15G/Form 15H at every bank branch?

No, submission at one branch of the bank or institution should be enough, as records are usually centralised.

Will submitting Form 15G/Form 15H make my interest income tax-free?

No, it only prevents TDS deductions. If your income is taxable, you must pay tax accordingly.

Should NRIs submit Form 15G/Form 15H?

No, these forms are meant exclusively for resident Indian citizens as per the Income Tax Act.

by IndiaFirst Life
Headquartered in Mumbai, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), with a paid-up share capital of INR 754.37 crore, is one of the fastest growing private life insurers in India in terms of New Business IRP in Fiscal 2023. Our key differentiators are our simple, easy-to-understand products that are optimally priced. As of Sept 30, 2023, we offered 30 retail products, 13 group products along with six riders (across retail and group portfolios), along with policies under the PMJJBY scheme, catering to protection, savings, health and retirement needs of our customers, leveraging multiple distribution capabilities and augmenting various investment options. In all propositions under the categories of Participating Plans, Non-Participating Savings Plans, Non-Participating Protection Plans, Unit Linked Insurance Plans, Group Protection Plans, Corporate Funds Plans, Riders & PMJJBY form a complete suite of offerings that help our customers prepare for the certainties of life. Our products are easy to understand and optimally priced with a developed comprehensive risk management framework/policy.