Form 15G / Form 15H: Save TDS from being Deducted

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Hiral Vakil

Form 15G
Form 15H
Income Tax
ITR Forms & Documents
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TDS

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 Rs. 10,000 (Rs. 50,000 in 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.

How to file Form 15G/ Form 15H?
Taxpayer needs to file Form 15G/15H with deductor to save TDS Deduction.
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How to file Form 15G/ Form 15H?
Taxpayer needs to file Form 15G/15H with deductor to save TDS Deduction.
Read More

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

Conditions for filing Form 15G:

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 individualBasic Exemption Limit
Below 602,50,000
Between 60 and 803,00,000
More than 805,00,000
From FY 2020-21 onward TDS will be deducted @10% on Dividend Income above Rs. 5,000. Treaders can submit Form 15G/Form 15H to deductor to avoid TDS Deduction.
Tip
From FY 2020-21 onward TDS will be deducted @10% on Dividend Income above Rs. 5,000. Treaders can submit Form 15G/Form 15H to deductor to avoid TDS Deduction.

Let’s take an example to understand better:

 

Particulars

Anjana

Rahul

Pravin

Gautam

Age

25

50

65

70

Residential Status

Resident of India

Resident of India

Resident of India

Non-Resident of India

Salary Income / Pension Income

2,70,000

0

1,50,000

0

Interest Income

10,000

2,60,000

20,000

85,000

Total Income

2,80,000

2,60,000

1,70,000

85,000

Deduction under Section 80

40,000

50,000

0

0

Total Taxable Income

2,40,000

2,10,000

1,70,000

85,000

Basic Exemption Limit

2,50,000

2,50,000

3,00,000

3,00,000

Form 15G/15H eligibility

Yes

No

Yes

No

Reason

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

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

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

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

Residential Status Calculator
Residential Status Calculator for Income Tax. Taxability in India depends on residential status. Know your residential status from Resident, NRI, Resident but Not Ordinarily Resident(RNOR)
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Residential Status Calculator
Residential Status Calculator for Income Tax. Taxability in India depends on residential status. Know your residential status from Resident, NRI, Resident but Not Ordinarily Resident(RNOR)
Explore

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.

  • Ganapathi bhat says:

    Can a senior citizen submit 15 H form online so that tds is not done. If so please explain the procedure.

    • Anushka Shah says:

      Hey Ganapathi,
      From April 1, 2020, dividend received on shares of a domestic company and/or from mutual fund schemes is taxable in the hands of an individual. Hence, individuals submit Form 15H to the payer to avoid TDS if they are eligible to do so.

      The following conditions must be satisfied for a senior citizen (age 60 years and above) to submit Form 15H to the company and/or mutual fund house:
      a) Senior citizen must be a resident individual
      b) Estimated tax payable on their total income for the relevant financial year should be nil.

  • Satyam says:

    I am a college student , and currently unemployed , do I need to fill 15-G for TDS exemptions on the dividends I receive on my shares

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