TDS

Using Forms 15G and 15H to save TDS on Income

Mr A will receive total interest of Rs. 100,000 from ABC Bank. Now since the interest amount is more than Rs. 10,000, Bank will deduct TDS @ 10%. Mr A has no other income and therefore his total income is less than the slab limit. In this case he can submit, Forms 15G and 15H to save TDS on his interest Income.

What is form 15G and Form 15H?

Form 15G and Form 15H are Forms prescribed for non deduction of TDS. PAN is necessary to use these Forms. Form 15H is for Senior citizens and Form 15G is for everyone else. Company or a firm cannot use these Forms.

What are the Conditions you must fulfill to submit Form 15G or 15H as the case may be?

Conditions you must fulfill to submit Form 15G

  1. You are a individual/HUF/Trust. A Company or a Firm cannot Submit Form 15G
  2. Only Resident Indians can apply for this Form
  3. Your Age Should be less than 60 Years
  4. Tax Calculated on income should be Zero. Also one should note that Form 15G cannot be submitted if total income before allowing deduction is more than basic exemption limit, even if the taxable income after allowing deductions is less than the basic slab limit. We have explained this with example of Mr B in table given afterwards

Conditions you must fulfill to submit Form 15H

  1. You are an individual resident Indian
  2. Your Age Should be more than 60 during the year in which you are submitting the form
  3. Tax Calculated on income should be Zero
Person / CategoryMr AMr BMr CMr D
Age during the year for submitting the Form55 years35 years61 years68 years
SalaryRs. 1,80,000
Pension1,00,0001,00,000
Fixed Deposit interest incomeRs. 70,000Rs. 2,60,000Rs. 1,80,000Rs. 3,30,000
Total Income before allowing section 80 Deductions2,50,0002,60,0002,80,0004,30,000
Deductions under section 80Rs. 45,000Rs. 30,000Rs. 10,000Rs. 1,50,000
Taxable incomeRs. 2,05,000Rs. 2,30,000Rs. 2,70,000Rs. 2,80,000
Minimum exempt incomeRs. 2,50,000Rs. 2,50,000Rs. 3,00,000Rs. 3,00,000
Eligible to submit Form 15GYesNoNoNo
Eligible to submit Form 15HNoNoYesYes
ExplanationForm 15G can be submitted as age is less than 60 years.

Total tax is nil and total income before allowing deductions is less than slab limit.
Form 15G cannot be submitted since total income before allowing deductions is more than the basic exemption limit

Form 15H is applicable only in case of Senior citizens
Form 15H can be submitted if age is more than 60 years and tax calculated on total income is nil.Form 15H can be submitted as age is more than 60 years and tax calculated on total income is nil. In case of Senior citizens Form 15H can be submitted although  total  income before allowing deduction exceeds basic exemption limit.

Purposes for which I can Use these Forms to Save my TDS

TDS on Bank Interest : Most Common use of Form 15G/15H is Saving TDS on Bank Interest. These forms are widely submitted to Banks specially by senior citizens who have non-taxable income and dont want to indulge in exercise of filing the ITR for claiming TDS Refund.

TDS on EPF withdrawal TDS is deducted on EPF balance if withdrawn before 5 years of continuous service. If you have had less than 5 years of service and plan to withdraw your EPF balance of more than Rs.50,000 (Rs 50,000 effective 1 June 2016, Rs.30,000 prior to that), you can submit Form 15G or Form15H. However, you must fulfil conditions (listed above) to apply for these forms. It means the tax on your total income including EPF balance withdrawn should be nil.

TDS on post office Post offices that are digitised also deduct TDS and accept Form 15G or Form 15H, if you meet the conditions applicable for submitting them.

TDS on rent TDS is deducted on rent exceeding Rs 2.4 lakh annually. If tax on your total income is nil, you can submit Form 15G or Form 15H to request the tenant to not deduct TDS (applicable from 1 April 2019).

TDS on Insurance Commission TDS is deducted on insurance commission, if it exceeds Rs 15000 per financial year. However, insurance agents can submit Form 15G/Form 15H for non deduction of TDS if tax on their total income is nil (with effect from 1 June 2017).

LIC premium receipts  Effective from October 2014, if the amount received from a policy exceeds Rs 1 lakh and it is taxable, 2% TDS shall be deducted by the insurer before paying. You can submit Form 15G/Form 15H to request that no TDS be deducted since tax on your total income is nil.

Some FAQ’s on Forms 15G and 15H

Can a HUF submit form 15G?

Yes, an individual/HUF/Trust can submit form 15G. A Company or a Firm cannot Submit Form 15G or 15H. Form 15H can be submitted by individuals only.

Can a NRI submit form 15G/Form 15H?

No, only resident can submit form 15G / 15H.

Does filing Form 15G/Form15H mean my interest income is not taxable?

Form 15G/Form 15H is only a declaration that no TDS should be deducted on your interest income since tax on your total income is nil. Interest income from fixed deposits, recurring deposits, and corporate bonds is always taxable.

What if I Forgot to submit Form 15G or Form 15H?

Then the only way to seek a refund of excess TDS deducted is by filing your income tax return.

Do I have to submit this form to the income tax department?

You don’t need to submit these forms directly to the income tax department. Just submit them to the deductor, and they will prepare and submit these forms to the income tax department.

What is the Due Date of Filling Form 15G or Form 15H Returns?

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