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.

 

Age of personInterest income/ dividend income Other incomeTotalEstimated taxable income (after rebate u/s 87A)Can he submit form 15g/ 15h?
24200001200001400000Yes
6210000030000040000080000No
30100000450000550000300000No
283000002000032000050000No
8520000002000000Yes

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. Status : Individual/ HUF/ AOP as applicability to you.
  4. Previous year: Current financial year. Suppose you are submitting form 15G for 2017-18’s income. The PY is 2017-18.
  5. Residential status: Resident.
  6. Flat/ Door/ Block no. : Current Address details .
  7. Name of premises: Current Address details.
  8. Road : current address details.
  9. Area : current address details.
  10. Town : current address.
  11. State : Current state.
  12. PIN : pin code number
  13. Email: Your email address.
  14. Telepone number.
  15. Whether assessed to tax under income tax act, 1961- Yes, if your net income is more than basic exemption limit for any of the six assessment year preceding the year in which the declaration is filed. So if you are filling form 15G for FY 2017-18, you need to check income of FY 2015-16 and previous 5 years. If you have no any taxable income for any year, tick No.
  16. Estimation income for which declaration made: Suppose you are filling form 15G for interest income, mention estimated total interest income of the year.
  17. Estimation total income of the year. In this column, mention estimated the total income of all sources. Includes salary, interest, house property income, PF income, pension income etc.
  18. Mention number of Form 15G/H you have submitted ( Other than this form) during the year. You are also required to mention aggregate income for which you have declaration made. Ex. Riya has submitted 2 forms for interest income to 2 banks. Total aggregate interest income is Rs. 120000. So she needs to mention 2 in first column and Rs. 120000 in the second column while filling the third form.
  19. Details of income for which declaration is made.

There are 5 columns in this section. Mention distinctive number of investment ( ask bank, mutual fund helpdesk for this number), the amount of income, nature of income and section under which tax is deductible. Refer this post to learn about various section under which TDS is deducted.

 

After filling details, sign the declaration.

There is additional row about declaration in which you need to write assessment year, previous year, name to complete the application.

Mention date and place and sign again.

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 a 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 a 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 w the th 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 the to amendment of section 192A of IT act, the 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 the of business of employer, completion the of project or other reasons which are not in control the of employee.

Mention PF income in column 17 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.