ITR filing: What are Forms 15G and 15H? Why should you download them?

If you invest in certain instruments like bank fixed deposit, recurring deposit and corporate deposit, the interest you earn is taxed. Banks and post offices will deduct TDS (Tax deducted at source) if your interest income exceeds Rs 10,000 in a financial year. If you are a senior citizen, this limit is Rs 50,000 a year. Bank deducts TDS on your interest, even if your total income is not taxable. If you submit Form 15G (for those less than 60 years of age) and 15H (for those above 60 years) to the bank requesting them not to deduct TDS, then TDS will not be deducted. Some banks will let you submit these forms from the website of the bank. Form 15G and 15H are valid for one financial year. So, it is important to submit these forms at the beginning of the financial year so that no TDS is deducted on your interest.

 

How to download form 15G

You can visit the Income Tax Department’s website: www.incometaxindia.gov.in, go to ‘Income Tax Forms’ under the ‘Download’ section and download form 15G online either in PDF or in a form version that can be filled. Form 15G is also available on the websites of banks, or you can also collect it from bank branches.

Do keep in mind that you have to submit separate Form 15G for deposits you have with each bank brank or post office to reduce your TDS burden.

Once the form is downloaded, you should print it, fill it up correctly and submit it with the appropriate bank or Post Office to reduce your TDS burden. Banks will also let you submit it online.

 

Form 15G Sample

Here is the format of part 1 of from 15G that you can download for the Income Tax Department’s website.

PART I

 

...............................................................

Signature of the Declarant

 

How to download Form 15H

Now we will take you through the form 15H download process. You can visit the Income Tax Department’s website: www.incometaxindia.gov.in, go to ‘Income Tax Forms’ under the ‘Download’ section and download form 15H either in PDF or in a form version that can be filled. Form 15H is also available on the websites of banks or you can also collect it from bank branches.

Do keep in mind that you have to submit separate Form 15H for deposits you have with each bank branch or post office to reduce your TDS burden.

Once the form is downloaded, you should print it, fill it up correctly and submit it with the appropriate bank or Post Office to reduce your TDS burden. You can also submit it online through the bank’s website.

 

Form 15H sample

Here is the sample of Part 1 of form 15H that you can find on the Income Tax Department’s website.

PART I

 

 

...............................................................

Signature of the Declarant

 

Key features of from 15G

Form 15G applies to you if you are below the age of 60 and have invested in some fixed income products and expect to receive interest income exceeding Rs 10,000 in a financial year.

Form 15G can be submitted to the bank to prevent TDS deducted on your interest income if your total taxable income is less than Rs 2,50,000.

To be eligible to submit Form 15G you must also be a resident Indian. Form 15G should be submitted during the beginning of the financial year.

The structure of Form 15G underwent substantial change in 2015 to make it easier for the taxpayer.

 

Key Features of 15H

Form 15H applies to you if you are above the age of 60 and have invested in some fixed income products and expect to receive interest income exceeding Rs 50,000 in a financial year.

You should submit Form 15G to the bank to avoid TDS deducted on your interest income if your total taxable income is less than Rs 3,00,000. For super senior citizens, the limit is Rs 5,00,000.

To be eligible to submit Form 15H you must also be a resident Indian. Form 15H should be submitted during the beginning of the financial year.

The structure of Form 15H underwent substantial change in 2015 to make it easier for the taxpayer.

FAQs

Am I eligible for submitting form 15G/15H?

You should submit Form 15G/15H only when your income is below the threshold limit and hence exempt from tax.

When will TDS be deducted on my interest income?

TDS is deducted on interest income when the interest income for a taxpayer exceeds Rs 10,00 in a financial year. In case of senior citizens, the limit is Rs 50,000.

Is there any due date for submitting form 15G/15H?

While there is no due date as such, it is recommended that one submits the form at the beginning of the financial year or when someone starts a new deposit.

How long will it take to for the service request to be accepted after I submit the form?

If you submit the request online, it happens on a real-time basis. If you submit it manually at a bank or post office, it will take a day.

What if I do not submit Form 15G/H and the TDS is deducted by the bank?

If you have not submitted Form 15G/H and the bank deducts TDS, you can claim a refund on excess TDS deducted by filing your Income Tax Returns, since the bank deposits TDS with the Income Tax Department.