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

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By Hiral Vakil on March 8, 2019

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 will submit it to the Income Tax Department.

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 Form 15G /15H 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.

ITR Forms & Documents: ITR Form Types, Documents and Filing

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

Conditions for filing Form 15G:

  • Your age is less than 60 years,
  • ​You are an Individual or HUF,
  • ​You are a Resident Indian,
  • Tax Calculated on your Total Income is zero,
  • Total Interest income is less than the basic exemption limit of that particular year.
Age of the individualBasic Exemption Limit
Below 602,50,000
Between 60 and 803,00,000
More than 805,00,000

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

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.  

How to file Form 15G/ 15H?

FAQs:

1. 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.

2. Where do I have to submit Form 15G / 15H?

You will have to submit these forms to the deductor who deducts TDS from your income. So for eg. in case of TDS on FD interest, it will be your bank branch.

3. Can NRIs file Form 15G / 15H?

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

4. 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.

5. When do I have to submit Form 15G / 15H?

You need to submit these forms at the beginning of the financial year so that the deductors don’t deduct TDS from your income. Even if you miss to submit form 15G / 15H at the beginning of the year, you should submit it at the earliest to avoid TDS deduction for rest of the year.

6. 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.