Individuals with their total income below the taxable limit can submit Form 15H and Form 15G to the bank and ask them to not deduct TDS on the amount of interest.
The banks in India have to deduct TDS when the interest income of an individual is more than Rs.40,000 a year. The bank includes deposits held in all branches to determine this limit. In case an individual’s total income is below the taxable limit, he/she can submit a Form 15G and Form 15H to the bank to request them not to deduct TDS on the interest amount.
What is Form 15G and Form 15H?
Form 15G and Form 15H are forms you can submit to prevent TDS deduction on your income, if you meet the conditions mentioned below. For this, PAN is compulsory. Some banks allow you to submit these forms online through the bank’s website. Form 15H is for senior citizens, those who are 60 years or older; while Form 15G is for everybody else.
Conditions:-
| Form 15 G | Form 15 H |
| You are an Individual or HUF or trust or any other assessee but not a company or a firm | You are an individual and resident Indian |
| Only Resident Indians can apply | You’re a senior citizen or will be 60 during the year for which you are submitting the form |
| You should be less than 60 years old | Tax calculated on your total income is nil |
| The total interest income for the year is less than the basic exemption limit of that year, which is Rs.2.5 lakhs for financial year 2019-20 (AY 2020-21) |
Common Asked Questions
1. Can HUF submit Form 15G/Form15H?
HUF can submit Form 15G if it meets the conditions but Form 15H is only for individuals.
2. Can NRIs submit Form 15G/Form 15H?
NRIs cannot submit Form 15G or Form 15H. These can only be submitted by resident Indians.
3. Do I need to submit Form 15G/ Form15H at all the branches of the bank?
Yes, you must submit one at each branch of the bank from which you receive interest income though TDS is deducted only when total interest earned from all branches exceeds Rs 40000.
4. 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.
5. Will my interest income become tax free if I submit Form 15G/Form15H?
Interest income from fixed deposits and recurring deposits is taxable. For senior citizens deduction of Rs.50,000 is available under section 80TTB for the interest income from fixed deposits/post office deposits/deposits held in co-operative society. You should submit this form only if tax on your total income is zero along with other conditions.
6. I submitted Form 15G and Form 15H but I have taxable income?
You must intimate to your bank that tax on your total income is not zero. The bank will make changes and deduct TDS accordingly. Do report the entire interest income in your tax return and pay tax on it as applicable.
7. 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.