What is Form 15G and Form 15H?
Form 15G and Form 15H may be a declaration that will be filled out by fixed deposit holders who are below 60 years for 15G and over 60 years for 15H to make sure that no TDS (tax deduction at source) is deducted from their interest income during a year. As per the tax rules, banks must deduct tax at source (TDS) just in case the interest is earned on your fixed deposit, recurring deposit, etc. If your FD interest is greater than 40000, 10% of your interest amount will be deducted as a TDS. Recently, EPFO Unified portal launched a facility to submit EPF Form 15G for PF which allows the EPF members to withdraw PF online. Also, you’ll avoid TDS, which may be a great benefit.
Form 15G and Form 15H are valid for only one financial year. So fill your 15G or 15H form at the beginning of every financial year to ensure your bank will not deduct TDS from your account. To avoid TDS you need to submit it within 31st march. Due to the case of COVID-19 this financial year 2020-21 govt extended it from 31st March to 31st Jun.
Conditions for Form 15G:
- You must be an Indian resident
- You are an Individual or HUF or Trust or any other assessee but not a company or firm
- Your age must be below 60 years old
- The total interest income is less than the basic exemption limit of 2.5 lakh in this financial year 2020-21.
- Tax calculated on your total income is nill
Conditions for Form 15H:
- You must be an Indian resident
- You must be a senior citizen over 60 years old.
- Tax calculated on your total income is nill.
- The total interest income is less than the basic exemption limit of 3 lakh in this financial year 2020-21.
What to do If you forgot to submit Form 15G or 15H?
A lot of taxpayers forgot to submit this form on time. The bank might have already deducted the TDS. In such a situation, you can do any one thing from the given below ideas.
- You can File your income tax return form to claim the refund of TDS. It is the only way to get your TDS back. Bank or any other party can’t able to refund your TDS, they already deposited it to the Income-tax department. The income tax department will refund your TDS after you file an income tax return.
- Submit Form 15G or 15H on time immediately. This way is my favorite, most of the bank deducted TDS every quarter. So submit it earliest so that no TDS is deducted for the remaining financial year.
Purposes to submit Form 15G or 15H?
- TDS on Bank Interest: Generally, it can be submitted to banks to make sure TDS is not deducted from your interest. If your interest is more than 40,000, 10% of your interest will be deducted as a TDS.
- TDS on EPF Withdrawal: If you plan for withdrawal EPF balance more than 50,000 and your continuous service is not completed 5 years, then you most have to submit Form 15G or 15H(effective 1st June 2016).
- TDS on Post Office Deposit: Post office also deduct TDS like a bank.
- TDS on Insurance Commission: If you are an agent and your commission is exceeded from 15000 as per budget 2016, 5% of your commission will be deducted as a TDS. So that Agent can submit Form 15G most.
- TDS on rent: TDS is deducted on rent if it is exceeding 2.4 lakh annually. You can submit Form 15G or 15H if the tax on your total income is nill.
- TDS on Corporate bonds: If you have any corporate bonds and your income is more than 5000 from them. You most have to submit Form 15G or 15H.
How to fill Form 15G:
You need to fill out the fields
1. Name of the Assessee- Name as mentioned on your PAN card
2. PAN of the Assessee– Valid PAN Number
3.Status- Individual or HUF(Hindu Undivided Family)
4. Previous year- Previous year of the claiming TDS
5. Residential status- provide your residential status because NRI is not allowed
(13-14). provide E-mail id and Mobile number
15.Wheather assessed to tax under the Income-tax Act, 1961-
(a). Tick “YES” if you Claimed any return
(b). Mention the previous year you claimed
16. Estimated income for which this declaration is made- mention your estimated income for which you make a declaration
17. Estimated total income of the P.Y. in which income mentioned in column 16 to be included- Total estimated income for the financial year
18. Details of Form No. 15G other than this Form filled during the previous year, if any- Mention the details, How many forms filled in the previous year, and the aggregate income you want to mention in the present financial year.
19. Details of income for which the declaration is filled– You have to mention all the details clearly like (term/Insurance policy number/Employe code) etc.
Download Form 15G: Click here
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