Form 15G & Form 15H - How to Fill

Forms 15G and 15H are self-declaration documents that people submit to banks in order to request that TDS not be deducted from their interest income because their income is lower than the basic exemption limit.

It is required that PAN be provided for this. You can submit these forms online via the bank's website with some banks.  

When to submit form 15G - This is for resident Indians below the age of 60, with total interest income from FDs in the financial year being less than Rs.40,000, with income below the basic exemption limit, and zero tax liability on total taxable income for the financial year.

When to submit form 15H - This is for resident Indians above the age of 60, with total interest income from FDs in the financial year being lower than Rs.50,000, with income below the basic exemption limit, and zero tax liability on total taxable income during the financial year in question.

Key Features of Form 15G 

The main features of Form 15G are as follows: 

1. Form 15G is a self-declaration form used to request that TDS not be deducted from an income when the tax assessee's annual income is below the exemption threshold. 
2. In order to reduce the compliance burden and expense for both tax deductor and tax deductee, Form 15G's structure underwent an important modification in 2015. 
3. The provisions of Section 197A of the Income Tax Act, 1961 mention the rules for Form 15G.  
4. Individuals under the age of 60 years may submit Form 15G. Senior citizens are defined as people over the age of 60 years. 

1. Even though Form 15H and Form 15G are very similar, only senior citizens may use Form 15H. 
2. For existing investments, this declaration must be submitted in the first quarter of the fiscal year for availing the benefit. 
3. However, in case of new investments, you can submit Form 15G prior to the initial interest credit.  

Download Form 15G/Form 15H 

All of India's major banks' websites offer free downloads of Form 15G for reducing the TDS burden. However, you can also visit the official website of the Income Tax Department to download form 15H.

Additionally, you can submit Form 15G online via the websites of the majority of India's major banks. 

How to Fill Form 15G

The steps to fill Form 15G are mentioned below: 

Step 1: Enter the name of assessed, status, previous year, and residential status. 

Step 2: Provide the PIN number, email address, and phone number along with the address information. 

Step 3: Answer ‘Whether assessed to tax under the income tax act, 1961?’ with a ‘yes’ if your income exceeded the taxable threshold in any of the last six years.  

Step 4: If you answered yes, mention the most recent year in which your income surpassed the taxable threshold. 

Step 5: Enter the total amount of interest or other income from which no TDS should be deducted. 

Step 6: Determine your total yearly income from all sources, including your salary, interest income, stipend, along with any other income you may have received. 

Step 7: Specify the total number of Form 15G submitted during the previous year (if any). 

Step 8: Enter the total amount of income reported on Form 15G. 

Step 9: Fill in the income information for which a declaration has been filed; The account or investment's identification number, the section where tax deductions are allowed, the source of the income, the fixed deposit account number, information about recurring deposits, etc., must be provided. 

Step 10: If you are signing on behalf of a HUF or AOP, please indicate your authority. 

You must not submit the form if the income needs to be combined with the income of another individual. A non-earning spouse or child's interest income from a fixed deposit must be combined with the depositor's income. In this situation, Form 15G is invalid.

TDS must be taken out in the depositor's name, and the depositor's PAN is necessary. 

Where to Submit Form 15G or Form 15H 

There are some additional places where you can submit Form 15G/Form 15H in addition to banks, to ensure that TDS is not deducted from interest payments. 

TDS on EPF withdrawal - If you withdraw the EPF balance before five years of continuous service, TDS will be deducted. You can submit Form 15G or Form 15H if the number of service years is less than five and you want to withdraw more than Rs.50,000 from your EPF account. However, you can apply for these forms only if you meet the eligibility requirements. The tax due on your entire income, which includes the EPF balance that was withdrawn, must be zero. 

TDS on insurance commission - If an insurance commission is higher than Rs.15,000 in a fiscal year, TDS will be deducted. Insurance agents can, however, submit Form 15G or Form 15H to request that TDS not be deducted if there is no tax on their overall income. 

LIC premium payments -  If the amount obtained from a policy is more than Rs.1 lakh and the maturity proceeds are subject to tax, the insurer will deduct 2% TDS before paying as of October 2014. With effect from September 2019, 5% TDS will be deducted on the amount of income that constitutes up the proceeds paid or due at maturity. If the deductee fails to submit their PAN details, 20% TDS will be deducted.  

TDS on rent payments - TDS will be deducted if the rent is more than Rs.2.4 lakh per year. With effect from 1 April 2019, if there is no tax on your total income, you can ask the tenant to not deduct TDS by submitting Form 15G or Form 15H. 

TDS on corporate bond income - If your income from corporate bonds surpasses Rs.5,000, TDS will be deducted. You can ask the issuer not to deduct TDS by submitting Form 15G or Form 15H. 

TDS on post office deposits - TDS is deducted by digitised post offices. You can submit Form 15G or Form 15H to the post office to ensure no TDS is deducted. 

What if I Forget to Submit Form 15G or Form 15H 

Many taxpayers fail to timely submit Forms 15G and 15H. You can choose from the following options depending on your circumstances: 

File your income tax return to request a TDS refund - You must file an income tax return in order to request a refund of the TDS deducted. Since banks and other deductors have already deposited TDS with the income tax department, they are unable to refund it to you. After the income tax return has been filed, TDS will be refunded.  

Submit Form 15G and Form 15H right away - Most banks collect TDS on a quarterly basis. Thus, if you have not submitted Form 15G or Form 15H, make sure to do it as soon as possible to avoid deduction of TDS.  

Eligibility Criteria for Submission of Form 15G & 15H

1. The tax forms to be submitted for fixed deposits also depend on the investor and the bank.
2. If the investor has crossed the age of 60 years, then he/she will have to file form 15H
3. If the investor is below the age of 60 years or is a trust or is a Hindu Undivided Family then they will have to file form 15G.
4. These forms cannot be filed by non-resident individual account holders or companies
5. The age limit set is dependent on the Bank criteria and cannot be considered as a format applicable for all banks as each bank may have a different cut off criteria

Documents required

Banks also deduct TDS from fixed deposits based on the documents submitted by the investor. Usually, any FD generating interest higher than Rs.40,000 will have a 10% TDS deducted at the source; however, if the investor has not given the bank their PAN number, then the TDS deducted for FD's generating more than Rs.40,000 in interest will see a 20% deduction at the source.

Hence it is imperative that the investor provides the correct PAN number while filing these forms. Along with the correct PAN number, investors will have to furnish other details such as telephone numbers, email IDs, occupation, and complete addresses along with details of income from other sources. These could be other investments, dividends from Shares, mutual funds or any money withdrawn from National Savings Schemes.

Number of Copies required

Duplicate copies of the declaration will have to be submitted to the banks. While some banks require only two copies, other banks will take three and provide one copy to the investor as an acknowledgement. It is the duty of the investor to verify the information furnished in the declarations before signing it. Investors making false statements will be liable for prosecution under the aegis of Section 277 of the Income Tax act of 1961.

Tax Refund Claims by Submitting Form 15G & 15H

Banks deduct TDS on only those deposits that generate interest higher than the prescribed limit. In any case of banks deducting TDS for such deposits even after the investor has submitted the required forms 15G and 15H, then they can file income-tax returns at the end of the financial year and can claim a refund.

Income Tax Act Sections and Rates for TDS  

Some of the common TDS sections are listed in the table below: 

Fine for Submission of False Declaration with Form 15G 

According to Section 277 of the Income Tax Act of 1961, making a false declaration on Form 15G just to evade TDS may result in a penalty as well as imprisonment. The penalties under Section 277 of the 1961 IT Act are mentioned below: 

1. If an incorrect declaration was made to avoid paying more than Rs.1 lakh in taxes, it could result in six months to seven years prison sentence. 
2. In all other situations, the imprisonment is from three months to three years.