CA Naresh Jakhotia
Very often, readers keep enquiring about the submission of Form 15G/ Form 15H to the banks or others payer so that interest could be received without deduction of tax at source (TDS). In this column, I am covering all about Form No. 15G & Form No. 15H and hopefully the detailed elaboration hereunder would provide a comprehensive picture about the submission of Form No. 15G & Form No. 15H.
Page Contents
What is Form 15G/ Form 15H and its relevance
Basically, as you may be knowing, Tax at source is deductible (TDS) on some interest paid or payable, above Rs. 5,000/- (Rs. 10, 000/- if the payer is a bank). If yearly interest payment doesn’t exceed Rs. 5,000/- or Rs. 10, 000/-, as mentioned above, then there is no liability to deduct tax at source. The above limit of Rs 10,000 has been increased to Rs 50,000 if the payee is senior citizen.
TDS is nothing but tax paid in advance on behalf of the payee and credit for the same can be claimed by the payee at the time of filing the income tax return. However, TDS can be avoided by the payee by submitting declaration form No. 15G/Form No. 15H. These forms have to be filed in duplicate and once the payer (bank, post office, company etc) takes them on record, the entire interest is to be paid to the depositor / lender without TDS. There are certain precautions one should take while submitting these forms. Filing a wrong form without being eligible to do so would be illegal and could involve payment of interest on the tax payable and also attracts penal consequences. The conditions under which Form 15G and 15H may be filed are almost similar yet there is a significant difference which needs to be noted carefully. In routine course, lot of taxpayers end up filing one of these forms when they are not eligible to do so and vice versa.
The main difference between Forms 15G and 15H is that Form 15G is meant for non-senior citizens whereas Form 15H is meant for senior citizens only.
Who can submit form No. 15G?
First and foremost only, a person who is resident in India can submit form No. 15G. NRI cannot submit this form. To be eligible to furnish Form 15G, the non-senior citizen needs to fulfill the following two conditions:
1. The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil; and
2. The aggregate amount of interest income etc. received during the financial year should not exceed the basic exemption limit for that relevant year. For the A.y 2019-20 the basic exemption limit is Rs 250,000.
If both these conditions are satisfied, Form 15G may be furnished to the payer & entire interest income could be received without any TDS.
Who can submit form No. 15H?
Any resident individual, who is above the age of 60 years or has completed the age of 60 years at any time during the financial year, can submit form No. 15H provided his tax liability on the basis of his estimated income is nil. Unlike form No. 15G, this form can be submitted by the senior citizen even though the total interest amount from the payer may exceed Rs. 3 Lacs (i.e., the limit of basic exemption limit for A.y 2019-20).For super senior citizen the basic exemption liit is Rs 5 lacs for A.y 2019-20. Who can submit Form 15G & 15H & care to be taken in submission
Difference between form 15G and Form No 15H
1. Form 15G can be submitted by individual below the Age of 60 Years while form 15H can be submitted by senior citizens (60 years & above).
2. Form 15G can be submitted by Hindu undivided families also but form 15H can be submitted only by Individual above the age of 60 years.
3. 15G cannot be filed by any person whose income from interest on securities/interest other than “interest on securities” exceeds the applicable basic exemption limit.
Certain points to remember while submitting Form 15G & 15H
1. Please ensure to mention Permanent Account Number (PAN) on the forms while submitting form No. 15G or Form No. 15H. In case, taxpayer fails to provide PAN to the deductor, the tax would be deductible @ 20%. As a precautionary measure, taxpayer should keep hard copy of an acknowledgement of Form No. 15G/Form No. 15H filed with the deductor (with PAN mentioned over it) to ensure that tax is not deducted at all.
2. These Forms are to be submitted in duplicate, one of which is forwarded to the IT department. Income Tax Authorities can make further inquiries regarding the declaration filed by the depositor.
3. The form should be submitted at the beginning of each financial year or at the time of deposit itself so as to avoid a situation where payer has already deducted the tax before its receipt.
4. If a person is making FD in different branches of same bank then these forms should be deposited at each and every branch where the deposit has been made. For example, if Mr. Ashish has made deposits at three different branches of SBI, then he has to submit the Forms at each branch separately.
5. These Forms can only be used for payments like dividends, interest on securities, interest other than interest on securities, national saving schemes, interest on units, premature withdrawal from provident fund (wef june, 2015), rent (wef June, 2016), insurance commission (wef June,2017), payment in respect of life insurance policy (wef june,2015). It may be noted that new set of forms are required to be filed every year and the eligibility criteria as stated above needs to be examined every year before furnishing the forms. Form 15G / Form 15H, once submitted, is valid for the financial year in which it is furnished. For subsequent years, the form would be required to be submitted again if assessee wants to receive the interest without deduction of tax at source.
6. No TDS is deductible by banks on interest payable in saving bank accounts.
7. In case of bank FDR made for longer duration, even if interest will be paid on maturity only, the bank is required to deduct tax at source on the interest accrued for that year even though no interest in fact has been paid. So, ensure to submit form No. 15G/H on yearly basis even if FD doesn’t mature in that year.
8. Any false or wrong declaration attracts penalty under section 277 & so it should not be signed blindly. Such false declaration is liable for prosecution which may range from 3 months to 7 years depending upon the quantum of default. Taxpayer can be penalized with rigorous imprisonment irrespective of fact that such wrong details were furnished intentionally or unintentionally as “Ignorance of Law is no excuse.”
9. Further, the taxpayer may please note that Part A1 in form 26AS shows the interest on FD’s against which tax is not deducted due to submission of Form No. 15G/ Form No. 15H. The information is readily with the IT department.
10. Irrespective of the fact that Form 15G & Form No. 15H has been filed or not, such income has to be mentioned under proper head while filing the return.
I hope that from the above discussion, it may be clear that you need to comply with certain conditions to be eligible to file form No. 15G or Form No. 15H. Moreover, you need to take certain precautions while filing these forms with the payer. Download Form 15G & 15H in excel / Word format with FAQs
(Author is a CA in Practice from Nagpur and is Partner in M/s. SSRPN & Co.)
(Republished with Amendments)
Lots of queries yet are not answered…I think IT department should come ahead to clarify this…
Is it mandatory to submit Form 15G with EPFO for a running EPF account every year or only at the time of withdrawal of EPF amount? Shall the department deduct TDS every year on the interest credited every year to my running EPF account.
Please explain me in this regard.
Is is mandatory to submit Form 15G with EPFO for a running EPF account every year or only at the time of withdrawal of EPF amount? Shall the department deduct TDS every year on the interest credited every year to my running EPF account.
Please explain me in this regard.
Dear Sir.
Please clarify on following matters,
I working in proprietor as accountant, I have to pay Interest of Rs. 15000/PM to a money lender. But the money lender arguing with me that TDS is not applicable as he will submit Form 15G or 15H. I am convincing him that these forms are applicable only for banks. Please provide me the clarification on this
thanks & Regards,
Nagaraj
Helpful Article!
Sir, can you clarify if a person submitting 15H form to a bank and another Post office need to file ITR? Is there any mandatory terms for claiming TDS deducted before submitting 15H by the bank or Post Office…
Sir,
What can we do if we have deposits in the name of Educational trust?
what if do not have pan no please reply???
excellent article by Jakhotiyaji
As you have mentioned that,It is mandatory and if not submitted then it attracts tax @ 20% and in case if declaration in form 60/61 will it attract the same..??+
Promt explanation..But would like to know that if in a case a person do not have a PAN then can he provide declaration in form 60/61 for the same..??
Info for your understanding
Income-tax (Fifth) Amendment Rules, 2011 – Amendment in rule 114B
NOTIFICATION NO. 27/2011 [F. NO. 149/122/2010-SO(TPL)], DATED 26-5-2011
– See more at: https://taxguru.in/income-tax/amendment-rule-114b-incometax-rules-1962-notification-272011-1491222010sotpl-dated-26052011.html#sthash.BMkS0S9l.dpuf
sir,
when we have to submitt the form 15g/15h,
1. every monthly we have to submitt or once in the year begining ie on April if the interest amount cross the 10000.00 for the perticular year.
hello sir iwant 15h & 15g filled ex. froms plz
CAN TRUST FILE FORM 15G?
PLZ GIVE ME RIGHT ANS.
Kindly guide me as i am caught in a big dilemma!…
I have deposited form 15g with my bank today on 02.05.15 saturday.
My doubted question is that i have not earned a penny from 1st jan 2014 to 30th april 2015.ie no salary income or from any source.
I had an FD done from my savings ac for 5 lakh rupee on 30 july,2014 which will get mature on 31 july 2015.
my mature value is 5.47 lakhs.I had got message from bank to deposit 15g to avoid TDS.So i have filed form 15 G.
Now since i have got a job and i will be joining job around from 15th may,2015 with salary of around 35K and ctc around
4.2L PA.Now i have come to know from your posts that i have wrongly filed 15 g form.I want to know what i can do to correct my mistake.the salary i will get from my company will be after deducting tax wich will be deposited in IT dept.Now can i be fined for my mistake i did ignorantly.since i have first time made an FD and filed 15 G form.I am deeply worried since i have learned there is hefty penalty and even imprisonment.Kindly reply me at the earliest i am very much worried.
Also i have read in your post that now in form 15 g there is one column where we have to write our estimated income for the financial year but i have not written any thing like this on form 15 g since i have not found any column related to it where i must have declared my estimated income from my salary.please help me.what best i can do.
Kind Regards
Kindly guide me as i am caught in a big dilemma!…
I have deposited form 15g with my bank today on 02.05.15 saturday.
My doubted question is that i have not earned a penny from 1st jan 2014 to 30th april 2015.ie no salary income or from any source.
I had an FD done from my savings ac for 5 lakh rupee on 30 july,2014 which will get mature on 31 july 2015.
my mature value is 5.47 lakhs.I had got message from bank to deposit 15g to avoid TDS.So i have filed form 15 G.
Now since i have got a job and i will be joining job around from 15th may,2015 with salary of around 35K and ctc around
4.2L PA.Now i have come to know from your posts in this wealth18 that i have wrongly filed 15 g form.I want to know what i can do to correct my mistake.the salary i will get from my company will be after deducting tax wich will be deposited in IT dept.Now can i be fined for my mistake i did ignorantly.since i have first time made an FD and filed 15 G form.I am deeply worried since i have learned there is hefty penalty and even imprisonment.Kindly reply me at the earliest i am very much worried.
Also i have read in your post that now in form 15 g there is one column where we have to write our estimated income for the financial year but i have not written any thing like this on form 15 g since i have not found any column related to it where i must have declared my estimated income from my salary.please help me.what best i can do.
Kind Regards
Can a trust submit form 15G??
Can a trust submit 15G??? Plz reply…
15G/H shuold be submitted in duplicate, so should it be in xerox copy or both duplicate copy should be in original form?
or 1 original and 1 xerox copy can be submitted?
I have HUF file my bank does not accept Form15G because Karta’s age is more than 60 years. So asking me to submit Form 15H for HUF file because his computer does not accept Form 15G due to age over 60 years. Please reply
If the bank already has the customer’s PAN number with them, in this case is customer still needed to submit the Form 15G?
I strongly believe that the IT dept. should issue a non tax certificate rather than the tax payers to submit these declarartion. Meaning, IT dept to decide whose TDS to be deducted and whose not. TDS deductees data should be sent to banks for deduction of TDS. Depositors are filing 15G even though their tax liabilities are in thousands..
Can a 15G be obtained for insurance commission which is with in the exemption limits?
Some temples(endowment dept ) have fixed deposits with Banks.then they need to submit 15g/h forms ?
If they want to no tds on their deposits what should they do ?
Dear Sir,
Who will file the form with I. T. deptt ?
Payer or payee ? –
hlo
sir, I had fix deposit on STDR twice n I kno I hv tu fill up on form no.15G…..so I dn got the idea hw tu fill it…
can u plz help me our….
Thanks
by stating ur association with a firm where u are partner you are guilty of professional misconduct under clause (6) Part I of First Schedule of Chartered Accounts Act 1949.
hope u don’t commit this mistake in future.
Reg.:-“Eligibility” of 15G submission:-Two conditions:”FIRST” The final tax on his estimated total income computed as per the provisions of the Income Tax Act and, should be nil; and,
“SECOND” The aggregate amount of interest income etc. received during the financial year should not exceed the basic exemption limit for that relevant year
For FY 2014-15,I am 50 year old & my interest income from Bank FD say Rs.1,40,000 and Interest from PPF Rs.170,000/=(“Exempt Income”), so aggregate amount of interest income will be Rs.3,10,000/=. There is no other income.
So, for Second condition above, whether I am eligible for filling 15G?
what’s the last date for submitting form 15g?? whole march or first week of july??
submitted 15H for several deposits. is it necessary to file income tax returns for the interest received. if it not filed, what should i do
if interest of all FDs is 12000 then TDS will be 12000*10% or (12000-10000)*10% ??
If a person submitted 15G/H form as applicable in the begining of Fin Year, When the FD expiring during the same financial year renewed by him, is it necessary to submit 15G/H form again for renewed FD.
Hi,
FYI, I had booked FD in my mother name wherein she has no income but she is house wife and has PAN card, Does this will have any consequences in future because you say that form 15 G can be submitted only when:
1. The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil;
Do you mean that FD can be booked when anybody income should be below 2.5 lacs ?
2. The aggregate amount of interest income etc. received during the financial year should not exceed the basic exemption limit for that relevant year.
You mean that I should not earn FD interest in a year more than 2.5 lacs
Please explain to me in simple english.
Thank you
Hi there, everything is going fine here and ofcourse
every one is sharing data, that’s actually good,
keep up writing.
I have a fd on my mother name in a bank and she is not a tax payer as her income doest not exeed limit. Should i submit 15g form or not
Hi Sir,
I m currently working out of india and doing my FD s online.So how can i submit 15G? Can anyone help me out ?
I am a senior citizen and hence tax exemption limit in financial year 2012-13 was 2.5 lakhs. My income from pension in this finanltial year was 2 lakhs. I filled up 15H form in the bank. So bank has deducted no tax at TDS even thouugh they have paid me total interest of 1 lakh in this financial year. So, as per my calculation my taxable income is 2+1-2.5=0.5 lakhs. How should I pay this tax ? Or, is it that I should not have filled up the 15H form ?
Good write up. But one aspect is left unanswered. It is clear that Form 15 G / H is to be submitted at the beginning of every financial year and also at the time of making a fresh deposit. But if a deposit matures during the financial year and is renewed, will it be necessary to submit a fresh 15 G / H for the renewed deposit ?
What if Senior Citizen is a Housewife and never had PAN Card and has FDR with Bank wherein interest is little over 10000/- p.a. How can she file Form 15H without PAN number. ???
Information is provided in simple and easy to understand language.
Very Good.
Excellent write up.
CA. subhash Chandra Podder
01/07/2014
Sir,
my total income is RS. 2,60,000/- with subscription in PPF of Rs.70,000/-
Can I submit 15G in bank?
Sir,
IF my income is Rs.2,60,000/- with subscription in ppf of Rs. 60,000/-.My net tax thus becomes zero. Can in such case, I submit 15G?
Very useful information . Thank You
Can a senior citizen pay tax on “total interest and pension”, exceeding Rs 2.5 lac, in the form of advance tax/self-assessment tax, simultaneously requesting bank(s) not to deduct tax at source by submitting 15 H, since the payment of tax in this form renders his tax liability nil, and the declaration in 15H justifiable ?
Dear Sir,
Who will file the form with I. T. deptt ?
Payer or payee ?
Do we have to take order from the I.T. Deptt. authorising the assessee for no deduction of T.D.S. ?
please let me know the procedure.
Thanks
Dear sir, Rs. 1350/- Postmaster, Sector-20, Chandigarh deducted my TDS on 30.06.2011 and I applied for refund to ITO Chd vide their ASK No.702300811049740 datedd /A.Y :30.08.2011/2011-12. The refund has not been crtedited in my saving account/cheque for the same has not been received so far Please advice me to whom should I approch.Regards. Gurdev Singh
Excellent……discussion on Form 15G/15H……Thanku so much..!!!
useful and vital information, Thanks Mr Naresh.
whether karta (HUF) can submit Form 15G/15H as the case may be
for not deduction of tax from interest accruals/credits exceeding
Rs 10000/- in a F.Y
Please clarify
Whether Form 15G & 15H are applicable in case of Company FDs also? or only in case of Bank FDs? Whether the individual can take the benefit of these forms in he/she has FDs with Company?