You are all tax-paying citizens, so it is mandatory that you know the ins and outs of various sections in order to the correct amount of tax applicable or avoid any unnecessary deductions. One of the sections of the Indian Income Tax Act provides for the deduction of TDS (tax deducted at source) on interest earned on savings bank and fixed deposit interest.
Form 15 G obviates the necessity of allowing TDS to take place on interest earned on savings bank and fixed deposit interest. You can do this by filling up Form 15G or Form 15H.
- Tax deduction at source is one of the methods of tax collection. Tax is deducted at source on different sources of income, including salaries, commission, rent, interest on deposits and dividends and remitted to the government. TDS is adjusted against tax due from you on different income sources.
- For every taxpayer below the age of 60 years, Form 15 G is a declaration to the Indian Income Tax department that your total annual income is below the tax threshold. There should be no TDS on your interest income. Form 15 H is to be provided if you are a senior citizen and your age is more than 60 years.
- Form 15 G is a declaration under sub-section under subsection (1) and (1A) of section 197 A of the Income Tax Act of 1961. Form 15 H is under sub-section 1(C) of Section 197 A of the Indian IT Act.
- If your interest income is more than Rs. 40,000, but if your overall income is lower, then filing a Form 15G or a Form 15 H can help save you from TDS and advance deduction of income tax.
Eligibility for filing Form 15G or 15H.
- Only individual taxpayers below the age of 60 years and HUF (Hindu Undivided Family) can file Form 15 G. Only individual taxpayers over the age of 60 years can file Form 15 H.
- This is applicable only to resident Indians.
- The total income earned should be less than Rs 2.5 lakhs.
- Pan card is mandatory for filing both Form 15 G and Form 15 H.
- The total tax calculated on total income should be zero.
How to fill Form 15G – Steps
Form 15G – sample
- Follow the instructions to learn how to fill out the 15G form.
- Step1: Fill in your name as per the income tax record. Also, enter your PAN number.
- Step 2: Status: Enter your status among HUF or an individual
- Step 3: Previous year: Enter the details of the current financial year for which you are applying
- Step 4: Enter your status as a resident.
- Step 5: Enter your address details with PIN code, telephone number, and email address.
- Step 6. Whether you are tax assessed under the Indian IT Act – If YES, check in case your income was more than the taxable limit in the last 6 years.
- Step 7: If yes, mention the details of the latest assessment year for which assessed. Also, mention the most recent year where your income was more than the taxable limit.
- Step 8. Estimated income for which Form 15G/15H is being filed.
- Step 9. Estimated total income of the previous year in which income mentioned in column 16 to be included. Enter the total income you earned during the year from various sources such as salary, interest income, Dividend, and other sources.
- Step 10: Details of all Form 15G filed during the previous year,
- Step 11. Fill out your average income and total income for the Financial Year
- Step 12. Fill in details of income for which declaration is filed. Provide all the relevant details.
– Pan Number plus unique identification number of the investment
– Source of your income
– Amount of tax deduction applicable
– Amount of income
– Fixed deposit number
– Recurring deposit numbers
– Details of National Savings Certificates
– LIC number, etc.
Step 13: Verify the details and affix your signature.
How to fill form 15G for PG withdrawal/ How to fill Form 15G online for PF withdrawal- Steps:
Step 1 log in to https://unifiedportal-mem.epfindia.gov.in/memberinterface/
Step 2 Click on Online Services – Claim (Form 31,19,10 C)
Step 3: Verify the last three digits of the bank account as shown in the image below.
Step 4: Then you will see the EPF withdrawal form.
Step 5: Fill up EPF withdrawal form, upload as below:
Step 6: Fill only Part 1 of the EPF withdrawal form and upload it to the Unified portal. The uploaded form should be in pdf format.
Step: 7 enter all relevant details and submit for withdrawal.
Step 8: Enter the estimated income for which you are filling the form in field 16 of Form 15 G. For EPF withdrawal, enter the EPF amount that you will get. Under field 19, enter the Provident Fund number and for the nature of Income: Enter TDS on EPF withdrawal, for section 192A and Amount: Enter the EPF amount (Employer+ Employee).
How to fill Form 15G in the new format
Form 15G is in two parts. Part 1 has to be filled up by the person who is making the declaration and Part 2 has to be filled by the bank or the agency making the payment of income.
Fill in the following details:
- Fill in your Name,
- PAN number,
- Your status as an individual or a HUF
- Fill in the Financial Year to which the income belongs.
- Fill in Your tax status as Resident
- Fill in your address details
15a ) Mention whether you are assessed to tax in any of the preceding 6 financial years
15b) Mention the latest Assessment year for which you have submitted a tax return.
16) Enter the estimated income for which the declaration is made.
17 ) Enter the estimated total income for the current Financial Year
18) Enter the aggregate number of Form 15 G filed previously and the total income covered under them.
19) Mention all the distinctive details of the investments to which Form 15 G is applicable-
1)Shares 2) Term Deposits 3) Recurring deposits 4) National Savings Schemes 5) Life Insurance Policies 6) Complete EPF withdrawal details.
Verify all the details entered above and sign the form and upload it
Part 2 – to be filled by the agency paying the income.
How to fill Form 15G online
- If you are filling up Form 15 G for interest on savings and fixed deposits received from a bank, visit the website of the bank. Search for Form 15 G and you will be taken to this option.
- Enter all the personal details, including name matching the PAN details, residential status, address and contact details as before.
- Enter the details of whether income was above the taxable limit in the preceding six financial Years. If the answer is yes, then enter the relevant details of the taxable income and the Financial Year in which received. Also, enter the details of the income against which TDS ought to be waived.
- Enter all the details of income received from all sources, salary, business income, interest income, dividends, stipend, etc. Also, mention the number of total Form 15 Gs filed in case you have more than one savings account.
- After filling in the aggregate income, you must file a declaration, account number, kind of income and the sections under the Income Tax Act deducting the tax. Verify all the above details and sign the document.
How to fill Form 15 H/ How to Fill Form 15 H Online
Form 15 H sample
Just like Form 15 G, Form 15 H is also divided into two parts:
Fill in all your personal details, if your age is higher than 60 years and you are an Indian citizen.
Details to be filled:
- Name and PAN number
- Date of Birth
- Financial Year in which the income for which Form 15 H is filed has been earned
- Residential Status
- Complete residential address and contact details
- If you have assessed income tax in any of the preceding 6 financial years
- The total estimated income in the current year is subject to TDS in respect of which the applicant wishes to make a declaration.
- The estimated total income in the current year from all the sources.
- The total number of Form 15 Hs filed by the applicant for various accounts with different banks
- Complete details of all the applicant’s investments in different financial instruments, including EPF withdrawals, dividend income, interest other than interest on deposits, income on life insurance policies, income on National Savings Certificates, and rental income.
- The applicant must verify and affix his signature to the form.
In case of online filling up of Form 15H, you must go to the respective site of the bank and enter all the above details in the Form 15 H available online.
Did you know?
That you can make use of Form 15 G and Form 15 H only if you have no taxable income and have Nil taxability liability. Also, the same exercise has to be repeated every year at the beginning of the Financial Year.
Words to Remember
To take a Hard Copy of Form 15 G /Form 15 H after filing the same. The form should show that no TDS has been calculated with the PAN number of the Assessee.
Form 15 G and Form 15 H save us from the payment of advance tax in the form of TDS and later claiming refunds by pre-empting the payment of TDS. They are nothing but declarations about the income and tax liability of the recipient of income. By filing these forms, you obviate the necessity of paying TDS if you have taxable income or avoid TDS if you have nil taxable liability. Remember to file either Form 15 G or Form 15 H at the beginning of every Financial year.
Form 15 G is a self-declaration form to avoid tax deduction at source under Section 197A of the Income Tax Act.
It is subject to self-verification. Entering erroneous details will lead to penal measures.
Yes, Both forms 15 G and 15 H can be filled online at various bank websites and also on the Indian Income Tax website.
The self-declaration is valid for one year.
The penalty for a false declaration can be a fine and/or imprisonment.