Interest earned on savings schemes such as the Provident Fund, the National Service Scheme, the Post Office Savings Schemes is fully taxable. The tax on the interest earned is deducted at source (TDS).
However, the Income Tax department has set a threshold for interest earned annually that is taxable. If you do not fall in this tax slab, your interest is exempt of taxes. You can avoid the TDS by making a declaration using Form 15G or 15H. Currently, the threshold for interest earned from fixed deposits is set at Rs40,000.
Form 15G and 15H
There are two kinds of forms with which you can declare that the interest earned by you on savings schemes is not taxable. You can request your bank or financier not to deduct any TDS. The forms have to be submitted at the beginning of a financial year.
Form 15G is a declaration form for any individual within the age of 60 years. The taxpayer submits the form and state that s/he is not liable to pay any tax on the interest earned on the saving scheme.
Form 15H is similar to the Form 15G but is meant for senior citizens. Any individual above the age of 60 years can use the Form 15H to declare that the interest earned by him/ her on a saving scheme is not taxable and no tax should be deducted at the source. This facility is available to Indian residents only and does not apply to non-resident Indians.
How to get Form 15G
Form 15G is available online. If your bank or financier allows you to submit the Form 15G and 15H online, you can just log in to your internet banking and fill up the form directly.
Alternately you can download the forms from the Income Tax e-filing portal. The forms are available under the ‘Frequently Used Forms’ tab. You can download the PDF versions of the form and print them out. After duly filling them up, you can submit the forms at the bank or financier. The details provided by the taxpayer have to be verified by the bank or financial institution.
How to get Form 15H
Much like the Form 15G, the Form 15H is also available online. You can download the form from the official website of the Income Tax department. You have to take three print outs and fill them out. Duly filled and signed forms have to be submitted to the bank or financier.
If your bank or financier allows online submission, you can fill up the form directly on your bank’s portal. To do so, you have to log in to your internet banking and go to the fixed deposit or saving scheme page. Here you can fill up the Form 15H and submit it directly. You need not take any print outs.
Instructions to fill out Form 15G
Every Form 15G has two sections. The first section is to be filled out by the taxpayer, and the second part has to be filled by the bank or the financier.
In the first section, fill out your details such as name, PAN number and the year for which you are claiming non-deduction of TDS. Make sure to mention your residential status — key in your address, email address and contact number. You also need to declare the latest financial year for which your returns had been assessed under the I-T Act. Next, you have to put in your estimated income from the interest for which you are seeking non-deduction and total revenue in the financial year for which you are seeking non-deduction of TDS.
Once you have completed these segments, fill in your investment details lastly. You need to mention your investment account number for your fixed deposit or PF or any other scheme. Recheck all your information before submitting the form.
Instructions to fill out Form 15H
Much like the Form 15G, the Form 15H also has two sections. The first section has to be filled by the taxpayer and the second section by the bank or financier.
The details to be filled in by you include name, PAN number and the year for which you are claiming non-deduction of TDS. You also need to mention your address, email and phone number. The form also asks you to estimate your income in the financial year for which you are seeking non-deduction of TDS. You have to declare an estimate of your income from the saving scheme for which you are seeking non-deduction of TDS. You investment details have to be filled in including the investment account number.
How to fill Form 15G
You can choose to fill the Form 15G offline or online. You can visit the website of income tax department’s e-filing section. The forms are available under the ‘Frequently use forms’ section. You can download the form and get print outs of the same.
Get three copies of the form and fill in the first section of the form, as mentioned earlier. Put in your PAN details, address, email ID and also put in your investment account number. Fill up the form and sign the forms. You can then submit these duly signed documents to the bank or financier where you have the savings accounts. You can also submit it at the post office or the company you work for depending on your requirement.
If your bank allows submission of Form 15G online, you can fill in the form online. Here, too, you need to fill in only the first section of the form. Fill in your details as well as the investment account number. Recheck your information and hit submit. You need not take print outs for this.
How to fill Form 15H
Similar to Form 15G, the Form 15H can be filled offline or online. You can visit the website of income tax department’s e-filing section and download the form to get started. The forms are available under the ‘Frequently use forms’ section.
Get three copies of the form and fill in the first section of the form, as mentioned earlier. Put in your PAN details, address, email ID and also put in your investment account number. Fill up the form and sign the forms. Sign these forms and submit them at your bank or financial institution. If you have a post office savings account, you can submit it at the post office or the company you work if you are withdrawing a part of your Employee’s Provident Fund.
Some banks and financial institutions allow submission of Form 15H online. All you need to do is log on to your internet banking and go to the savings scheme page. You can directly fill in the form online and submit it without any hassle of printouts. Fill in your details as well as the investment account number.
Make sure you are eligible for submitting the Form 15G and 15H before you submit the forms or you could face penalties.
How to submit Form 15G (online and offline)
You can choose to submit Form 15G offline or online, depending on the facilities provided by your bank or financier. Firstly you need to check if your bank allows submission of Form 15G online. If this facility is available in your bank, you can simply log on to your internet banking account and go to the savings scheme page. You will find the option to generate a Form 15G. You fill this form up online. Once you have filled up the form, recheck the details and hit submit. You Form 15G has been submitted.
Alternately, you can download the form, fill it up physically and submit it at the bank. The forms are available under the ‘Frequently use forms’ section of the Income Tax portal. You can download the form and get print outs of the same. Make sure to print three copies of the form. Fill up the form and sign the forms. You can then submit these duly signed documents to the bank or financier where you have the savings accounts. You can also submit it at the post office or the company you work for depending on your requirement.
How to submit Form 15H (online and offline)
You can also submit your Form 15H online or offline. To submit it offline, you need to download the form from t6he Income Tax portal as discussed above. Print out three copies of the form, fill them up and sign them. Once completed, you can submit these forms at your bank or post office or your employer (in case of Provident fund).
If your bank or financier allows submission of Form 15H online, you can log on to your internet banking and fill up the form. You can submit the form directly using internet banking. You need not take print outs in this case.
Eligibility criteria for submitting Form 15G
You can submit Form 15G only if you are an Indian citizen residing within the country. The Form 15G facility is not available to non-resident Indians. You must be younger than 60 years old. The other eligibility criteria that you must fulfil for submitting a Form 15G is that you are an individual and not a company, firm or trust. The form is not available to companies. Your total tax liability for the financial year in question must be zero. The total interest earned in the financial year must be less than the basic exemption threshold.
Eligibility criteria for submitting Form 15H
Form 15H can be submitted only by individuals who are over 60 years old. You can submit the form if you are an Indian citizen residing within the country for the financial year in question. Much like the Form 15G, the Form 15H, too, is not available to non-resident Indians. Like the Form 15G, only individuals and not companies or firms are eligible to submit the Form 15H. Here, too, your total tax liability for the financial year in question must be zero. The total interest earned in the financial year must be less than the basic exemption threshold.
FAQs
What happens if I forget to submit For 15G or Form 15H?
If you have forgotten to submit your Form 15G or 15H, you have two options. You can either claim your TDS refund at the time of filing your income tax return or submit Form 15G or 15H immediately to avoid further deductions of TDS. Usually, banks deduct TDS quarterly. So if you submit the form immediately, the bank will stop deducting TDS from the next quarter. The deducted TDS amount can be sought as a refund at the time of returns filing.
Once the bank or the financial institution deduct TDS, it loses the right to refund the amount to you. The funds are mandatorily deposited with the Income Tax Department. This fund can be sought only as a refund via income tax returns.
What happens if the declaration submitted in Form 15G or 15H is false?
Providing false information in Form 15G or 15H attracts penalty under section 277 of the Income Tax Act. The penalty could be imposed in terms of fine or even imprisonment for a period of six months to seven years. Fill in the form only if you are eligible to avoid any penalties.
What are the schemes for which I can submit Form 15G or 15H?
The Form 15G and 15H are declarations seeking non-deduction of TDS on interest earned from savings schemes. You can seek non-deduction of TDS on interest from bank deposits, EPF withdrawal, interest on post office deposits, income from corporate bonds, proceeds from life insurance policies and rental income if your rental income for the year exceeds Rs8 lakh.
Do all banks allow online submission of Form 15 or 15H?
No. Only some banks have made the form available online for customers. Check with our bank and log in to your internet banking to make use of this facility. Otherwise, you can download the form and submit it with the bank or financial institution.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
