FORM 15H AND 15G: People who do not come under the purview of tax can fill this form and submit it to the bank, so that TDS is not deducted on their interest amount.
FORM 15H AND 15G: By filling the form 15G and 15H, the person states that his income does not come under the purview of tax. Through this TDS deduction can be avoided. In India, if the interest income of a person is more than Rs 10,000 per annum, then banks have to deduct TDS on it. According to Bankbazaar, if a person’s income is less than the taxable limit, then he has to fill Form 15G and 15H and submit a request for non-deduction of TDS by submitting it to the bank. The general difference between 15G and 15H forms is that the 15H form has to be filled by people of age 60 years and above. While Form 15G can be filled by all others.
What is Form 15H
Form 15H is a declaration form falling under sub section 1(C) under section 197A of the Income Tax Act, 1961.
1. This form can be filled by people of 60 years of age or more.
2. Last year’s estimate tax should be zero. The individual should not have filed income tax return in the previous year because his income is less than the taxable amount.
3. This form has to be submitted by the person in all the bank branches from where he is collecting the interest.
4. Form 15H must be submitted before the first interest is paid. It is not mandatory but it can prevent TDS deduction from the bank.
5. If interest income from sources other than deposits such as interest income on loans, advances, debentures, bonds etc. exceeds Rs.5,000, then Form 15H has to be submitted.
What is Form 15G
Form 15G is a declaration form falling within sub-sections 1 and 1(A) of section 197A under the Income Tax Act, 1961. There are a few types of submission criteria for this.
1. Hindu Undivided Family, any person below the age of 60 years.
2. 15G should be deposited before the first payment of interest on FD.
3. They have to be deposited in all those bank branches from where the money is being deposited.
4. This form is to be submitted only by those whose taxable income is nil.
5. The person should be an Indian citizen.
6. The total interest income during the financial year should be less than 2.5 lakhs.
