Under which section one can submit Form No 15G/15H

Learn about submitting Form No 15G/15H under Section 194A of the Income Tax Act, 1961. Discover eligibility, conditions, and distinctions between Form No 15G and Form No 15H.

Section 194A of Income Tax Act,1961 provides that interest other than Interest on securities payable by persons other than individual/HUF is to deduct tax at the time of credit or payment, whichever is earlier, when the aggregate sums payable during the financial year exceed Rs. 5,000 @ 10% as income tax.

The above provision shall not apply:

Where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the persons referred as under to the account of, or to, the payee does not exceed-

Forty thousand rupees, where the payer is a banking company, cooperative society or post office. In the case of a senior citizen, it will be fifty thousand rupees.

As per Notification No 76/2015 dated 29/09/2015 if the receiver of interest provide Form No 15 G and Form No 15H.

As per Section 194A, an assesse is entitled to get more than the above limit as interest bank will deduct tax @ 10%. If an assesse has not provided PAN to bank, bank will deduct tax @20%. Now if assesse wish, not to deduct tax by bank, as his total income is below taxable limit, he has to provide Form No 15G and senior citizen Form No 15H to bank.

Form No 15G and Form No 15H are to be submitted online, by the assesse. On receipt of Form No 15G/15H the bank will informed to CBDT and they provide Unique Identification Number (UIN).

Form No 15G:

Individual and HUF assesse can provide Form No 15G and get relief for no deduction of tax, under section 197A (1A) (1) of Income Tax Act 1961. Company and Firm assesse cannot provide Form No 15G

• Form No 15G can be issued by individual (below the age of 60 years) and HUF assesse.
• Along with Form No 15G, assesse has to provide expected income of the current year and after claiming all deductions the income should be less than taxable income. That shows that assesse is not liable to pay tax.
• Form No 15G is to be submitted before payment of interest is made.
• All the branches of the Bank is to taken in to consideration for calculation of interest.
• If the amount of interest exceed Rs. 40,000 and Rs. 50,000 for senior citizen, then form no 15 is to be given to all the branches.
• Other interest on loan, advances, debenture, bonds exceeds Rs. 5,000 then Form No 15G is to be provided.

Form No 15H:

Individual whose age is more than 60 years i.e. senior citizen can provide Form No 15H and get relief for no deduction of tax, under section 197A  (A) (1) of Income Tax Act 1961.

Other conditions are same as Form No 15G.

Difference between Form No 15G and Form No 15H:

• Form No 15G can be issued by an individual/HUF whose age is less than 60 years, while Form No 15H can be issued by senior citizen, i.e. age of more than 60 years.
• Form No 15G can be issued by HUF, while Form No 15H can be issued by only an individual having more than 60 years of age.

If any person submit wrong statement and provide Form No 15G/H is liable for penalty u/s 277 of the Income Tax Act 1961 and if it has been proved, is liable for both i.e. penalty and imprisonment.

• If tax evasion exceed rupees twenty five lac, six months to seven years imprisonment; with penalty,
• In other case along with penalty, imprisonment of three months to two years.

Chart showing who can give Form No 15G, under which section:

Who can give Form No 15H and under which section?

An individual whose age is more than 60 years i.e. Senior Citizens can give Form No 15H under following sections.