Forms 15G and 15H to save TDS on Interest Income

What is Form 15G and Form 15H?

Form 15G and Form 15H are forms you can submit to prevent TDS deduction on your income, if you meet the conditions mentioned below. For this, PAN is compulsory. Some banks allow you to submit these forms online through the bank’s website. Form 15H is for senior citizens, those who are 60 years or older; while Form 15G is for everybody else.

Form 15G and Form 15H are valid for one financial year. So, please submit these forms every year at the beginning of the financial year. This will ensure the bank does not deduct any TDS on your interest income.

Conditions you must fulfill to submit Form 15G

1.       You are an individual or HUF or trust or any other assessee but not a company or a firm

2.       Only Resident Indians can apply

3.       You should be less than 60 years old

4.       Tax calculated on your Total Income is nil

5.       The total interest income for the year is less than the basic exemption limit of that year, which is Rs.2.5 lakh for financial year 2019-20 (AY 2020-21)

Conditions you must fulfill to submit Form 15H

1.       You are an individual and resident Indian

2.       You’re a senior citizen or will be 60 during the year for which you are submitting the form

3.       Tax calculated on your Total Income is nil

Examples to understand who can submit Form 15G and Form 15H

Person / Category	Diya	Sagar	Arya	Komal
Age	50 years	21 years	65 years	68 years
Salary	Rs. 1,80,000	–	–	–
Pension	–	–	1,00,000	–
Fixed Deposit interest income	Rs. 85,000	Rs. 2,60,000	Rs. 1,80,000	Rs. 3,30,000
Total Income before allowing section 80 Deductions	2,65,000	2,60,000	2,80,000	3,30,000
Deductions under section 80	Rs. 45,000	Rs. 30,000	Rs. 10,000	Rs. 55,000
Taxable income	Rs. 2,20,000	Rs. 2,30,000	Rs. 2,70,000	Rs. 2,75,000
Minimum exempt income	Rs. 2,50,000	Rs. 2,50,000	Rs. 3,00,000	Rs. 3,00,000
Eligible to submit Form 15G	Yes	No	No	No
Eligible to submit Form 15H	No	No	Yes	Yes
Explanation	Form 15G can be submitted as age is less than 60 years. Total tax is nil and interest income is less than minimum exempt income.	Form 15G cannot be submitted since interest income is more than the basic exemption limit	Form 15H can be submitted if age is more than 60 years and tax calculated on total income is nil.	Form 15H can be submitted as age is more than 60 years and tax calculated on total income is nil. Form 15H can be submitted although interest income exceeds basic exemption limit.

Forgot to submit Form 15G or Form 15H?

A lot of taxpayers forget to submit Form 15G and Form 15H on time. In such a situation, the bank might have already deducted the TDS. Based on your situation, you can do any of the following.

File your income tax return to claim refund of TDS

The only way to seek a refund of excess TDS deducted is by filing your income tax return. Banks or other deductors cannot refund TDS to you, since they have already deposited it to the income tax department. Income tax department will refund excess TDS, after you file an income tax return

Submit Form 15G and Form 15H immediately

Most banks deduct TDS every quarter. If you forgot to submit Form 15G or Form 15H, don’t worry. Submit it at the earliest so that no TDS is deducted for the remaining financial year

Purposes for which Form 15G or Form 15H can be submitted

While these forms can be submitted to banks to make sure TDS is not deducted on interest, there are a few other places too where you can submit them.

·   TDS on EPF withdrawal –TDS is deducted on EPF balance if withdrawn before 5 years of continuous service. If you have had less than 5 years of service and plan to withdraw your EPF balance of more than Rs.50,000 (Rs 50,000 effective 1 June 2016, Rs.30,000 prior to that), you can submit Form 15G or Form15H. However, you must fulfil conditions (listed above) to apply for these forms. It means the tax on your total income including EPF balance withdrawn should be nil.

·    TDS on income from corporate bonds –If you hold corporate bonds, TDS is deducted on them if your income from them exceeds Rs 5,000. You can submit Form 15G or Form 15H to the issuer requesting non-deduction of TDS.

·       TDS on post office deposits –Post offices that are digitised also deduct TDS and accept Form 15G or Form 15H, if you meet the conditions applicable for submitting them.

·       TDS on rent – TDS is deducted on rent exceeding Rs 2.4 lakh annually. If tax on your total income is nil, you can submit Form 15G or Form 15H to request the tenant to not deduct TDS (applicable from 1 April 2019).

·       TDS on Insurance Commission – TDS is deducted on insurance commission, if it exceeds Rs 15000 per financial year. However, insurance agents can submit Form 15G/Form 15H for non deduction of TDS if tax on their total income is nil (with effect from 1 June 2017).

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