April 2015 is running and you may be asked by your banker to submit form 15G or Form 15H. You can download this form here. In this article I will explain you – how to fill form 15G or form 15H correctly? and who should submit form 15G or form 15H to bank for non deduction of TDS? Let’s start.

Meaning of form 15G / form 15H:

Form 15G or form 15H is submitted to requrest income provider for not deducting income for prescribed income. In that form, declaration maker declares that his estimated taxable income for the same year is NIL.

Who can submit form 15g or form 15H?

Nowadays there may be fashion to submit form 15G or form 15H to bank. My Clients even do not know meaning and usage of form 15G / form 15H but they are demanding those forms. Please be clear that all are not required to submit form 15G / form 15H. ( even your banker is asking you to submit)

Only resident Indian can submit form 15G / form 15H. NRI cannot submit those forms. Also note that individual and person can submit form 15G/ H and company and firm cannot submit those forms. However, AOP and HUF can submit those forms.

To submit those forms, your taxable income should be NIL for that year.

If you fulfill following conditions, submit form 15G / form 15H:

  1. Your estimated tax liability for the current year is NIL and
  2. Your interest for financial year does not exceed basic exemption limit + relief under section 87A.

Example:

Understand whom should submit form 15g/ h and whom should not for financial year 2015-16 through this table.

[table id=20 /]

 

Recommended read

PF taxability

 

Whom to submit form no. 15G / 15H:

You can submit the form to bank, post office or mutual fund, nsc where you have made investments and receiving income (interest on securities, dividend,interest other than interest on securities, interest on units, interst on fixed deposits)  from that investment.

Consequences of wrongly submitting form 15G or form 15H:

If your estimated income from all the sources is more than the basic exemption limit ( + relief under section 87A if applicable), don’t submit form 15G or form 15H to income provider. Wrongly submission of form 15G / form 15H will attract section 277 of income tax act.

wrongly submission of form 15G/ FORM 15H

 

If you cannot read clearly in above picture, read below the section.

 

Section 277 in The Income- Tax Act, 1995
277. 2 False statement in verification, etc. If a person makes a statement in any verification under this Act or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable,-

(i) in a case where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;
(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine.]
You may think who will inform income tax department about submission of form 15G/ 15H by me. Remember that income provider will send one copy to IT department to verify correctness of form 15G or form 15H. Besides, income tax department also makes changes in form 26AS and insert PART A1- details of tax deducted at source for 15G/ 15H.
download form 15G or form 15H
So be careful about submission of form 15G or form 15H .

When to submit form 15G / form 15H?

Form 15G/ form 15H should be submitted in the starting of the financial year – generally in April. So income provider will not deduct TDS on that income.

Difference between form 15G / form 15H:

Form 15G is for non senior citizen  ( person with age of less than 60 years) . On the other side form 15H is for senior citizen  ( person whose age is 60 years or more ) during the current financial year.

Download form 15G/ form 15H:

You can download form 15G or form 15H from the link given in the beginning of article or specific form published by your banker.

 

How to fill form 15G/ form 15H:

How to fill Form 15G ?

Form 15G is divided in two parts.

Part 1 is for declaration giver- for you.

Part 2 is for declaration receiver – for bank, post office etc.

You are required to use part 1.

I will explain PART 1 of form 15G point wise.

  1. Name : write name as per pan card.
  2. PAN : write your PAN number.
  3. Assessment year: For current year , it is assessment year 2016-17. Don’t make mistake in writing it. It is next to the current financial year. ( No matter about your year of PF withdrawal, assessment year is 2016-17 because you are submitting form for current year ( 2015-16’s estimated income)
  4. Flat/ Door/ Block no. : Current Address details .
  5. Name of premises: Current Address details.
  6. Status : Individual/ HUF/ AOP as applicability to you.
  7. Assessed in which ward circle : Details about your income tax ward you were assessed last time. You can know your income tax ward and circle from this link- know your juridictional AO. Just enter your PAN no. and you can find the details.
  8. Road : current address details.
  9. Area : current address details.
  10. AO code : write as per link provided in point 7.
  11. Town : current address.
  12. State : Current state.
  13. PIN : pin code number.
  14. Last assessed year in which assessed : Last year generally if you were assessed in last year. 2015-16
  15. Email
  16. Telephone NO.
  17. Present ward circle : Same if no change after issue of pan card. ( as per point 7)
  18. Residential status: Resident.
  19. Name of business/ occupation : Your business or job details.
  20. Present AO code : as per point 7 if no change in ward/ circle of income tax.
  21. Juridictional chief commissioner of income tax  ( if not assessed of income tax earlier) : leave it blank.
  22. Estimated total income: You are required to enter estimated total income of current year. Do sum of the total income from all sources and tick the relevant boxes.The amount should be from following sources:  Interest on securities , Interest on sum other than securities  ( interest on FD etc.), Interest on mutual fund units., withdrawals of NSC.Dividend on shares,
  23. Estimated total income of the current year should be entered. The income mentioned in column 22 should be included in it .PF income ( if taxable) and other income (business, salary etc.). The amount is taxable income means total income less deductions available.
  24. In this column, you are required to give details of investment you have made. For different form of investment different schedules are given.

Before discussing about various schedules, I want to introduce you with online investment platform- fundsindia.com where I have opened account recently.

You can also invest online by registering here, entering basic information, pan number and verifying documents. The service is totally free.)

Schedule 1 :

Details of shares

Enter No. of shares, class of shares ( equity or preference share) , distinctive number of shares ( find it in share certificate), Date of purchase of shares.

Schedule 2:

Details of securities

Description of security, name of security, purchase date, date of security , amount of security.

Schedule 3:

Details of sums given by declarant on interest – declaration to be given for non deduction of interest on fixed deposit.

In this column, you are required to enter details of your FD no., date of FD, amount of fixed deposit, interest rate, period of fixed deposit.

Schedule 4:

Mutual fund units details

Write details of units, amount of units, no. of units, face value of units and class of units.

Schedule 5:

Details of withdrawn from National Saving Certificate ( NSC)

Write details of NSC held in post office, amount of NSC and withdrawn amount.

After filling details, sign the declaration.

Part 2 of form 15G/H:

Don’t fill any thing in part 2. The person whom you are furnishing declaration ( BANK, POST OFFICE ETC.) will fill this part. Leave it blank.

How to fill form 15H?

There is no difference in filling form 15H. Fill the details as per guidance given above.

Other important things to know:

Declaration under form 15G/ form 15H is not alternative of income tax return:

No matter you have given declaration to bank or others for non deduction of TDS, you are required to file income tax return if required in income tax act.

What to do when TDS deducted though 15G/ form 15H submitted:

If your income payer deducts TDS from income though submission of the above forms, you can file return and claim tds refund as per your tax liability. No need to worry about it. Don’t ask him to refund TDS because he has already deposited it in government department through TDS return.

Attached PAN card copy with declaration:

It is necessary to attached pan card copy with declaration of form 15g/h.

Filling form 15g or form 15H for PF withdrawal:

Due to amendment of section 192A of IT act, if employee has rendered service for less than 5 years and has accumulated balance is more than or equal to Rs. 30000, he is required to submit form 15G/H along with pan card.

Otherwise TDS will be deducted at 10% (if pan is given).

TDS will not be deducted in following cases:

  1. when there is continuous service of more than 5 years.
  2. When PF amount is less than Rs. 30,000.
  3. When Form 15G/H and PAN is given and PF accumulated balance is more than or equal to Rs. 30,000 and service rendered is less than 5 years.
  4. Termination of service is due to ill health, discontinuation of business of employer, completion of project or other reasons which are not in control of employee.

Mention PF income in column 23 if it is taxable.

Submit form 19 with form 15G/H for PF withdrawal.

Recommneded read :
PF taxability 

I have tried here to give detailed guidance for form 15g / 15h. If this article becomes helpful to you, share it on social media to encourage me to write.