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 Form 15G or Form 15H with the deductor. You can file Form 15G or Form 15H in the following two manners:
- Physical Submission,
- Online Submission.
Physical Submission of Form 15G/ Form 15H
Online Submission of Form 15G/ Form 15H
- Go to the website of the deductor i.e, Bank’s website.
- Log in to your account,
- Fill the Form 15G/ 15H and submit.
What are the details required to file Form 15G or Form 15H?
- Residential Status
- Address Details
- Contact Information
- Estimated Income Details
- Previously Filed Form 15G/ 15H Details
When should Form 15G / Form 15H be submitted?
For the following income source Form 15G or Form 15H can be submitted:
- TDS on EPF withdrawal: TDS is deducted when you withdraw from EPF account before 5 years of continuous services. So if you have not completed 5 years of service and you are planning to withdraw your EPF balance for more than Rs. 50,000 (Effective from 1st June 2016. Earlier the limit was Rs. 30,000), you can save yourself from TDS by submitting Form 15G /15H.
- TDS on Rent: If your rental income for a year exceeds Rs. 2,40,000 (Rs. 1,80,000 till FY 2018-19), TDS is deducted by the tenant. However, if your total income including rent is not taxable then you can submit the Form 15G / 15H to the tenant to save yourself from TDS deduction.
- TDS on the interest income from FDs with Banks / Post office: If your total income including the interest from deposits is not taxable, you can submit the Form 15G / 15H to the Banks /Post office, requesting them not to deduct the TDS from your interest income.
- TDS on Corporate Bonds: If your interest income from corporate bonds is more than Rs. 5000 then TDS is to be deducted from the same. You can submit form 15G / 15H to the issuer asking him not to deduct the TDS.
- TDS on Insurance Commission: Earlier If insurance commission earned by agent exceeded Rs. 15,000 then TDS used to get deducted from it. But from FY 2017-18 insurance agents can also submit Form 15G/ 15H for non-deduction of TDS if the tax on their total income is zero.
- TDS on Dividend Income: Earlier there was no TDS on Dividend Income due to DDT (Dividend Distribution Tax). But from FY 2020-21, TDS @ 10% will be deducted on dividend income if it is more than Rs. 5,000. However, a trader can submit Form 15G/ 15H for non-deduction of TDS if the tax on their total income is zero.
Form 15G/15H needs to be submitted at the beginning of the financial year. This allows the deductor to not deduct TDS while filing quarterly TDS returns during the year.
Any resident Individual/HUF who is not a senior citizen can file Form 15G to the deductor if their total income is less than Rs. 2,50,000.
Any resident Individual/HUF being a senior citizen can file Form 15H to the deductor if their total income is less than Rs. 2,50,000.