As per the provisions of Section 194A of Income Tax Act, 1961, when Bank, Co Operative Society or Post Office, pay interest to any person more than Rs.40,000 and Rs.50,000 to senior citizen tax @ 10% is to be deducted. As per Notification No 76/2025 dated 29th September, 2015 issued by Central Board of Direct Taxes, Form No 15G and Form No 15H can be submitted on line, so tax is not be deducted. If a person not providing Permanent Account Number (PAN), tax is to be deducted @ 20%.
A person will have to submit Form No 15G, while Senior Citizen have to submit Form No 15H, if he do not wish to deduct tax. This form is to be submitted to the Bank, Co Operative Society or Post Office before 7th April and 30th April.
There certain changes made in Form No 15G and 15H. Formerly assesse have to prove that his total income is not taxable, hence no TDS is to be made. Now due to changes, assesse have to give details of his total income on estimated basis and prove that income is not taxable then only Form No 15G and Form No 15H is issued. Against estimated total income, includes Salary, Interest, Rent and capital gain, while no deduction like provident fund, Public Provident Fund and tax free bonds interest are allowed.
After Notification No. 76/2016 of CBDT dated 29th September, 2015 form no 15G and form no 15H are to be submitted online. After receiving form by director, he will inform to CBDT and Form will be given Unique Identification Number (UIN). Director will have to show these UNI and self-declaration of tax payer in quarterly statement. These form 15G and 15H are to be kept up to 7 years.
As these form no 15G and form no 15H are submitted online, no paper coy is to be given to income tax officer.
Who has to file, which form?
| Form | Assesse | Section |
| Form No 15 G | Individual other than Senior Citizen | 197A (1A)(1) (1) |
| Form No 15 H | Individual Senior Citizen | 197A (1C) |
If the Bank has provided facility of net banking, Form no 15G and Form no 15H generate online, by writing name of bank. Login to internet banking go to e-Fixed Deposit menu and Generate Form No 15G and 15H option.
Form 15G and Form 15H are for the assesse not to deduct tax. If there is no need to file form and assesse has file the form, will be liable for interest as well as penalty.
Form 15H:
If the age of assesse is 60 years or more, as per section 197A (1C) tax will not be deducted in certain income.
- This form is to be submitted by only senior citizen
- During the assessment year estimated tax payable should be NIL.
- If the assesse has put deposit in various branch of the same bank, form 15H is to be submitted in all branches. For example, Mr. A has deposited Rs.5,00,000 in Bank of India, Ahmedabad; Rs.5,00,000 in Bank of India Mumbai branch, he has to give Form No 15 H to both the branch of Bank of India.
- It is advisable to submit Form No 15H before interest is due or payable, so that no deduction will made by bank. Otherwise bank will deduct TDS and you will have claim.
FORM 15G:
Individual and HUF assesse, that means other than Firm or Company, will have to submit Form No 15G, for not to deduct tax.
- A person having less than 60 years of age.
- As mention in Form No 15H will be applicable for Form 15G.
- If the total taxable income from interest, dividend is less than Rs. 2,50,000 than Form 15G is to give.
- This form is to be submitted before making interest on fixed deposit.
If the form is submitted wrong are liable to pay penalty u/s 277 of the Income Tax Act, 1961, as under:
(1) If the concealment is more than Rs.25 lakhs, 6 months to 7 years jail and penalty;
(2) Other cases three months to 2 years jail and penalty.
Author Bio
Is Form 15G confined to individual only. Cannot it be used by a small business unit?
Experts please offer remarks.