What are Form 15G and Form 15H?
Form 15G and Form 15H are valuable tools that individuals can use to prevent the deduction of tax at source (TDS) on their interest income. These forms are specifically meant for resident individuals and Hindu Undivided Families (HUFs) who wish to avoid TDS on their income. It’s important to note that non-residents are not eligible to use these forms for this purpose. You can choose to submit these forms either online or offline, depending on the facilities offered by your bank or financial institution.
Understanding the Difference: Form 15G vs. Form 15H
The primary distinction between Form 15G and Form 15H lies in the age and income criteria of the individual. Form 15G is intended for individuals below 60 years of age and HUFs. On the other hand, Form 15H is specifically designed for senior citizens who are 60 years of age or above.
Eligibility Criteria for Form 15G and Form 15H: Avoiding TDS on Interest Income
Form 15G and Form 15H: Age, Income, and Tax Liability
Form 15G and Form 15H are essential tools for individuals seeking to prevent the deduction of tax at source (TDS) on their interest income from banks or other financial institutions. The eligibility criteria for these forms are based on the age, income, and tax liability of the individual.
Form 15G Eligibility Criteria:
- Age: Form 15G is specifically meant for individuals below 60 years of age and Hindu Undivided Families (HUFs).
- Tax Liability: To be eligible for Form 15G, the individual must have a nil tax liability on their total income for the financial year.
- Income Limit: The total interest income from all sources for the financial year should be below the basic exemption limit of Rs. 2.5 lakh.
Form 15H Eligibility Criteria:
- Age: Form 15H is exclusively designed for senior citizens who are aged 60 years or above.
- Tax Liability: To be eligible for Form 15H, the individual must have a nil tax liability on their total income for the financial year.
- Income Limit: The total interest income from all sources for the financial year should be below the basic exemption limit of Rs. 3 lakh for senior citizens or Rs. 5 lakh for super senior citizens.
Applicable Income Types for Form 15G and Form 15H:
Both Form 15G and Form 15H are valid for the following types of income:
- Interest income from various bank deposits such as savings accounts, fixed deposits, recurring deposits, etc.
- Interest income from post office deposits including savings accounts and term deposits.
- Interest income from corporate bonds and debentures.
- Interest income from mutual funds.
- Dividend income from mutual funds and equity shares
The Declaration Process
By submitting Form 15G or Form 15H, the individual declares that their income falls below the taxable limit, making them exempt from paying taxes on it. However, it’s important to note that despite availing of these forms to avoid TDS deductions, individuals must still report their interest income in their income tax return and file it before the due date.
Form 15G and Form 15H serve as valuable instruments for individuals to manage their taxes and optimize their interest income without the burden of TDS deductions.
Submitting Form 15G and Form 15H: A Step-by-Step Guide
Form 15G and Form 15H are vital tools that allow you to avoid the deduction of tax at source (TDS) on your interest income from banks or other financial institutions. These forms are exclusively applicable to resident individuals and not open to non-residents. Here’s a step-by-step guide on how to submit Form 15G and Form 15H online or offline:
Submitting Form 15G and Form 15H Online:
- Log in to your internet banking account and navigate to the section displaying your deposits or investments.
- Look for an option that allows you to submit Form 15G or Form 15H online. Depending on the bank, you may find this option under e-services, tax details, or investment services.
- Choose the appropriate form based on your age and income criteria. Form 15G is meant for individuals below 60 years of age and Hindu Undivided Families (HUFs), whereas Form 15H is for individuals aged 60 years and above, i.e., senior citizens.
- Fill in all the required details, including your name, PAN, address, email, phone number, etc. You may also need to provide information about your income sources and estimated income for the financial year.
- Review the form to ensure all details are accurate and submit it online. After submission, your bank will send you a confirmation message or email. You might also be able to download or print a copy of the form for your records.
Submitting Form 15G and Form 15H Offline:
- Download the relevant form from the official website of the Income Tax Department or obtain it from your bank branch.
- Fill in all the necessary details, such as your name, PAN, address, email, phone number, etc. Additionally, you may need to provide information about your income sources and estimated income for the financial year.
- Sign the form and attach a copy of your PAN card as supporting documentation.
- Visit your bank branch where you have your deposits or investments, and submit the completed form. Upon submission, the bank will provide you with an acknowledgment receipt, and in some cases, they may stamp a copy of the form.
Notes:
- Make sure to submit Form 15G or Form 15H at the beginning of each financial year or whenever you open a new deposit account.
- Remember to update these forms if there are any changes in your income or tax status during the year.
Filing Dates for Form 15G and Form 15H: Stay Compliant with Tax Regulations
Form 15G and Form 15H are invaluable tools that allow you to escape the deduction of tax at source (TDS) on your interest income from banks or other financial institutions. These forms are solely applicable to resident individuals and not available for non-residents. You can choose to submit these forms online or offline, depending on your bank’s offerings.
Due Dates for Filing the Form 15G and Form 15H
The due date for filing Form 15G and Form 15H varies according to the quarter in which you submit them:
|
Quarter |
Period |
Due Date |
|
Q1 |
April to June |
15th July |
|
Q2 |
July to September |
15th October |
|
Q3 |
October to December |
15th January |
|
Q4 |
January to March |
30th April |
Compliance and Updates
To ensure compliance with tax regulations and avoid any TDS deductions, submit these forms at the beginning of each financial year or whenever you open a new deposit account. Additionally, remember to update these forms promptly if there are any changes in your income or tax status during the year.
Filing and Status of Form 15G and Form 15H
Form 15G and Form 15H serve as vital tools for individuals seeking to avoid TDS deductions on their interest income, given their income falls below the basic exemption limit. Understanding the filing process and status updates for these forms can streamline tax planning.
Here’s what you need to know:
Unique Identification Number (UIN):
- Upon submission of Form 15G and Form 15H, the tax deductor is mandated to assign a Unique Identification Number (UIN) to each individual. UIN is vital for filing the quarterly Statement of Form 15G and Form 15H.
E-Filing and Digital Signature Certificate (DSC):
- Payers are required to upload the received Form 15G and Form 15H for a given quarter on the Income Tax Department’s e-filing website [5]. It is important to note that filing with a Digital Signature Certificate (DSC) is mandatory for FORM 15G/15H.
Checking Status:
- To view the status of the uploaded file, individuals can navigate to “My Account” and then select “View Form 15G/15H.”
- Initially, the status will be displayed as “Uploaded” upon successful upload, after which the file will be processed and validated.
- Within 24 hours of upload, the status will be updated as either “Accepted” or “Rejected,” reflecting the outcome of the validation process.
By adhering to the filing process and staying updated on the status of their submitted forms, individuals can ensure a smooth and efficient tax planning journey. Timely submission and accurate information play a significant role in optimizing tax benefits and avoiding any unnecessary hassles.
Avoiding Late Submission: Consequences and Penalties for Form 15G and Form 15H
Form 15G and Form 15H are powerful tools that allow individuals to prevent the deduction of tax at source (TDS) on their interest income. However, it is crucial to adhere to the due dates for submitting these forms to avoid potential consequences and penalties. Let’s explore the implications of late submission:
Consequences of Late Submission:
- TDS Deduction: If you fail to submit Form 15G or Form 15H within the specified due date, your bank or financial institution may deduct TDS on your interest income for the period in which the form was not submitted. This could result in a reduced net income and create a tax liability for you.
- Refund Process: In case TDS has been deducted due to late submission, you would need to file your income tax return and claim a refund for the excess TDS deducted. This can lead to additional paperwork and delay in receiving the refund.
- Interest Payment: If your total income exceeds the basic exemption limit, and you have not paid advance tax or self-assessment tax, you may be liable to pay interest on the tax payable. Late submission of Form 15G or Form 15H may contribute to this scenario.
Penalties for Late Submission:
- Late Filing Fee: According to Section 234E of the Income Tax Act, if you fail to file the TDS/TCS return on or before the prescribed due date, you may be charged a filing fee of Rs. 200 per day for delayed submission. This penalty is applicable to late submission of TDS returns and not specifically related to Form 15G and Form 15H.
- Penalty and Prosecution: Under Section 277 of the Income Tax Act, submitting a false or incorrect declaration in Form 15G or Form 15H may lead to penalties or prosecution. This can involve imprisonment and monetary fines.
In conclusion, Form 15G and Form 15H provide individuals with the opportunity to avoid TDS deductions on their interest income. By underst anding the eligibility criteria, types of income, and filing process for these forms, individuals can optimize their tax planning. It is crucial to submit the forms within the specified due dates to avoid consequences such as TDS deductions, refund processes, interest payments, and penalties. Staying compliant with tax regulations and adhering to the prescribed guidelines can help individuals effectively manage their interest income and achieve their financial goals.
Form 15H is a self-declaration form that can be submitted by senior citizens (above the age of 60 years) to ensure that TDS is not deducted from their income.
Form 15G and Form 15H serve as self-declaration forms that individuals can submit to their banks or other financial institutions to prevent the deduction of tax at source (TDS) on their interest income. These forms are applicable only to residents of India with a valid PAN. By submitting these forms, individuals can declare that their total income is below the taxable limit and, therefore, they are not liable to pay tax on the interest earned. This helps individuals, especially those with lower incomes, to avoid TDS deduction on their interest income and retain the full interest amount.
To view and download Form 15G and Form 15H, you can access the TRACES website or the e-filing portal of the Income Tax Department. You will need to log in using your PAN, password, and date of birth. Once logged in, select the appropriate assessment year, form type (Form 15G or Form 15H), and format (HTML, PDF, or Excel). Then, click on the ‘View/Download’ option to access the form. You can either print or save the form for your reference or submission.
To verify the TDS entries in Form 15G and Form 15H, you should cross-check them with the TDS certificates issued by the deductors, such as Form 16 or Form 16A. These certificates provide details of the TDS deducted on various incomes, including interest income. Additionally, you can check the status of the TDS returns filed by the deductors on the TRACES website. If you notice any discrepancies or mismatches in the TDS entries, it is essential to contact the deductor and request them to correct the error promptly. Ensuring accurate TDS entries is crucial for proper tax compliance and avoiding any potential issues during the filing of your Income Tax Return (ITR).
Form 15G is for individuals below 60 years of age and Hindu Undivided Families (HUFs), whereas Form 15H is for individuals aged 60 years and above, i.e., senior citizens. Both forms have to be submitted every financial year at the beginning of the year to the bank or the institution where you have your deposits.
You can submit Form 15G and Form 15H either online or offline to your bank or the institution where you have your deposits. Some banks allow you to submit these forms online through their websites or mobile apps. You can also download these forms from the Income Tax Department website or get them from your bank branch. You have to fill in the details such as your name, PAN, address, previous year’s income, estimated income for the current year, etc., and sign the declaration. You have to submit these forms before the first payment of interest in the financial year.
The main benefit of submitting Form 15G and Form 15H is that you can avoid TDS on your interest income if your total income is below the taxable limit. This will help you save tax and also avoid the hassle of claiming a refund later. However, you should note that these forms do not exempt you from filing your income tax return (ITR) if you have any other income or deductions.
If you do not submit Form 15G and Form 15H, your bank or the institution will deduct TDS on your interest income at the rate of 10% if your PAN is available, or at the rate of 20% if your PAN is not available. This will reduce your net income and also create a tax liability for you if your total income exceeds the basic exemption limit. You will have to file your ITR and claim a refund of the excess TDS deducted by showing your interest income and tax liability.
No, you can submit Form 15G for any type of interest income that is subject to TDS, such as savings account interest, recurring deposits (RDs), bonds, debentures, etc. However, you should ensure that your total interest income from all sources is below the basic exemption limit of Rs. 2.5 lakh for the financial year.
No, you cannot submit Form 15G for dividends. Dividends are not subject to TDS from April 1, 2020, onwards. However, dividends are taxable in the hands of the shareholders as per their income tax slab rates. You have to report your dividend income in your ITR and pay tax accordingly.
No, you cannot submit Form 15G for rental income. Rental income is subject to TDS under Section 194I if it exceeds Rs. 50,000 per month or Rs. 2.4 lakh per annum. You have to report your rental income in your ITR and pay tax accordingly.
No, you cannot submit Form 15G for capital gains. Capital gains are subject to TDS under Section 194DA if they exceed Rs. 1 lakh in a financial year from life insurance policies. You have to report your capital gains in your ITR and pay tax accordingly.
No, you cannot submit Form 15G for foreign income. Foreign income is subject to TDS under Section 195 if it is taxable in India as per the Double Taxation Avoidance Agreement (DTAA) with the respective country. You have to report your foreign income in your ITR and pay tax accordingly.
The validity of Form 15G and Form 15H is limited to a single financial year. You have to submit a fresh form for each financial year to avoid TDS on your interest income. You should also update your form if there is any change in your income or tax status during the year.
Yes, you can submit Form 15G and Form 15H for multiple deposits or accounts with the same bank or institution. However, you have to mention the details of all your deposits or accounts in the form and also the aggregate amount of interest income from all sources. You should also submit a separate form for each bank or institution where you have your deposits or accounts.
Yes, you can submit Form 15G and Form 15H online through the e-filing portal of the Income Tax Department. You have to register yourself on the portal and log in with your user ID and password. You can then fill in the form online and submit it electronically. You will receive a confirmation message and an acknowledgment number after successful submission.
You can check the status of your Form 15G and Form 15H on the TRACES website or the e-filing portal of the Income Tax Department. You have to enter your PAN, assessment year, and acknowledgment number to view the status of your form. You can also download a consolidated PDF file of all your forms submitted for a particular assessment year.
If you submit false or incorrect Form 15G and Form 15H, you may face penal consequences under Section 277 of the Income Tax Act, 1961. The penalty may range from imprisonment for a term of three months to seven years and a fine, depending on the amount of tax evaded. Therefore, you should ensure that you meet the eligibility criteria and provide accurate information in your form.
No, you cannot submit Form 15G for income from shares. Income from shares is subject to TDS under Section 194E if it is received by a non-resident sportsman or sports association from India. You have to report your income from shares in your ITR and pay tax accordingly.
No, you cannot submit Form 15G for income from lottery or horse racing. Income from lottery or horse racing is subject to TDS under Section 194B if it exceeds Rs. 10,000 in a single payment or Section 194BB if it exceeds Rs. 10,000 in a single day. You have to report your income from lottery or horse racing in your ITR and pay tax accordingly.
No, you cannot submit Form 15G for income from commission or brokerage. Income from commission or brokerage is subject to TDS under Section 194H if it exceeds Rs. 15,000 in a financial year. You have to report your income from commission or brokerage in your ITR and pay tax accordingly.
No, you cannot submit Form 15G for income from rent. Income from rent is subject to TDS under Section 194I if it exceeds Rs. 50,000 per month or Rs. 2.4 lakh per annum. You have to report your income from rent in your ITR and pay tax accordingly.