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Income Tax Form 15G and 15H

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Hiral Vakil

Form 15G
Form 15H
Income Tax
ITR Forms & Documents
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TDS
Last updated on June 24th, 2021

What is Form 15G/15H?

Form 15G/ 15H is used to make sure that TDS is not deducted from your income if you meet certain conditions as mentioned below. You can submit these forms to the deductor who deducts TDS on your income.

The best use case is that of Banks. Banks deduct TDS @ 10% if your interest income from deposits exceeds INR 10,000 (INR 50,000 in the case of senior citizens). If your total income is not taxable then you can submit the Form 15G /15H to banks so that they don’t deduct TDS from your interest income. Some of the banks provide the facility to upload Forms online through their website as well.

Form 15H is for senior citizens who are 60 years or elder and Form 15G is for a non-senior citizen. It is to be filed every financial year at the beginning of the year.

Need help with Form 15G/15H filing?
Talk to an expert via call, whatsapp or messages. Ask questions about tax returns, applicability & compliance etc.
[Rated 4.8 stars by customers like you]
Need help with Form 15G/15H filing?
Talk to an expert via call, whatsapp or messages. Ask questions about tax returns, applicability & compliance etc.
[Rated 4.8 stars by customers like you]

What are the conditions for filing Form 15G/ 15H?

Below are the conditions for filing Form 15G:

The conditions for filing Form 15H are the same as above except the condition that their age should be of 60 years or above.

Age of the individual Basic Exemption Limit (INR)
Below 60 2,50,000
Between 60 and 80 3,00,000
More than 80 5,00,000
From FY 2020-21 onward TDS will be deducted @10% on Dividend Income above INR 5,000. Treaders can submit Form 15G/Form 15H to the deductor to avoid TDS Deduction.
Tip
From FY 2020-21 onward TDS will be deducted @10% on Dividend Income above INR 5,000. Treaders can submit Form 15G/Form 15H to the deductor to avoid TDS Deduction.

Let’s take an example to understand better:

 

Particulars

Anjana

Rahul

Gautam

Pravin

Age

25

50

70

65

Residential Status

Resident of India

Resident of India

Non-Resident of India

Resident of India

Salary Income / Pension Income

2,70,000

0

0

1,50,000

Interest Income

10,000

2,60,000

85,000

20,000

Total Income

2,80,000

2,60,000

85,000

1,70,000

Deduction under Section 80

40,000

50,000

0

0

Total Taxable Income

2,40,000

2,10,000

85,000

1,70,000

Basic Exemption Limit

2,50,000

2,50,000

3,00,000

3,00,000

Form 15G/15H eligibility

Yes

No

No

Yes

Reason

Anjana can submit Form 15G Since the tax calculated is zero and interest income is less than the basic exemption limit

Rahul cannot file Form 15G. Even Though the tax calculated is zero because his interest income exceeds the basic exemption limit (INR 2,50,000)

Gautam cannot file Form 15H since he is not a resident Indian 

Pravin can file Form 15H since his tax calculated is zero and interest income is less than the basic exemption limit (INR 3,00,000)  

How to file Form 15G & Form 15H?

Form 15G/ Form 15H is used to make sure that TDS is not deducted from your income. If your tax liability for a year is zero then you can file these forms with the deductor. These can be filed in the following two manners:

1. Physical Submission

2. Online Submission

Details required

When should Form 15G / Form 15H be submitted?

The forms should be submitted for the following income source when TDS is deducted on:

FAQs

Do I have to submit Form 15G / 15H to all the branches of the bank where I have deposits?

Yes, you will have to submit Form 15G / 15H to all the bank branches where you have deposits.

Can NRIs file Form 15G / 15H?

No. Form 15G / 15H can only be filed by an Indian Resident.

Can HUF file Form 15G / 15H?

Yes. If the HUF meets all the conditions mentioned above, then it can submit Form 15G / 15H to the deductors.

Will my interest income become tax-free if I file Form 15G/ 15H?

No. Submission of Form 15G/ 15H does not mean that your income is tax-free. It only means no TDS will be deducted on such income by the deductor. You still need to show the same as income while filing your ITR.

When to submit Form 15G/ 15H?

Form 15G/15H needs to be submitted at the beginning of the financial year. Thus the deductor shall not deduct TDS while filing quarterly TDS returns during the year.

Who can submit Form 15G?

Any resident Individual/HUF who is not a senior citizen can file Form 15G to the deductor if their total income is less than INR 2,50,000.

Who can submit Form 15H?

Any resident Individual/HUF being a senior citizen can file Form 15H to the deductor if their total income is less than INR 2,50,000.

Got Questions? Ask Away!

  1. Hey @TeamQuicko

    Thanks for the blog! Just one quick question - Why do we have to report a quarterly breakdown of Dividend Income under IFOS?

    Thank you!

  2. I had received dividend recently but I had noticed that TDS had been deducted. any idea as to why has it happened and is there a way I can claim this TDS?

  3. Hey @HarshitShah

    After the introduction of Budget 2020, dividend income is now taxable in the hands of the shareholder; and is also subject to TDS at 10% in excess of INR 5000 u/s 194 & 194K. Foreign Dividend is taxable at slab rates. TDS is not applicable to such dividends. The taxpayer should report such income under the head IFOS in the ITR filed on the Income Tax Website.

    Hope this helps!

  4. Hi @ameyj

    The amount of TDS deducted shall reflect in your Form 26AS only and it will also reflect the name of the deductor.
    Using the name of the deductor you can find out on which share you have received the dividend and you can also cross-check the same in your bank statement.

    Yes, you are right, TDS is to be deducted when the dividend paid exceeds 5000 INR in a financial year. However, the 5,000 INR limit pertains to all the dividends an individual gets in a year, or the total dividend per shareholder that a company pays out in a year, is left to interpretation, and hence registrars and share transfer agents (RTA) are not taking any chances and are deducting TDS even on small amounts.

    Hope this helps :slightly_smiling_face:

  5. Hi @TeamQuicko

    Consider that I have 10 shares each of 10 different Indian companies. Each of the 10 companies are declaring a dividend of INR 100 before the FY ends. Now I will be recieving 1000 as dividend from each company, thereby a total of 10,000.

    The 5,000 dividend limit, is it applicable to each company / total dividend recieved by me in a year. If it is applicable to each company, then I would not attract TDS of 10% for dividend.

    Also pl clarify, how would the company B know that I have got shares of Company A,C,D,E so on…

  6. Hey @Abdul_Kaleem_shah

    As per sec.194 of income tax act, TDS liability will arise when the amount of such dividend or the aggregate of the amounts of such dividend distributed or paid or likely to be distributed or paid during the financial year by the company to the shareholder, exceeds 5000 Rs.

    Here, the term company not includes aggregate companies and hence limit of 5000 Rs. should be applicable to each company.

    Here, you can read below article covering TDS on dividend income:

    Since, it is purely based on interpretation and ambiguous as opinion vary from experts.

  7. Hey @TeamQuicko

    I tried to file ITR-3 via Quicko’s integration with Zerodha. While filing the ITR, I got an option to switch to the New Tax regime to save additional taxes.
    Since I had some turnover from intraday and FnO (speculative/ business), am I eligible to switch to the new regime through Quicko while filing?
    How do I fill the Form 10-IE? If I haven’t filled the form, would the portal preent me from filing returns altogether?
    Also, once I get rebate (if opted for new regime) / pay dues (if opted for old regime), do I need to go through the hassles of replicating it on the new ITR portal (i.e manually answering the schedule sections)?

    Kind regards

  8. Hi @ChinmayB,

    Yes, you can opt for the new tax regime. However, keep in mind in case a taxpayer has business income and they opt for the new tax regime, they can switch to the old tax regime only once.

    If you opt for the new tax regime, you need to file Form 10-IE before filing the ITR

    Here’s how you can file the Form 10-IE

    When filing your ITR through Quicko, you do not need to enter details on the new ITR portal, since Quicko is a ERI (e-return intermediary) registered with the Income Tax Department.

    Note: ITR filing will be enabled on Quicko in the coming week. So stay tuned for more exciting features!

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