Form 15G & Form 15H - Parts, Usage and Eligibility

What is 15G and 15H?

15G and 15H are self-declaration forms that individuals submit to exempt them from tax as their income is below the taxable limit^[1] . You can avoid TDS (Tax Deducted at Source) on your income by submitting either of the two forms to relevant organisations such as banks, post offices etc. While Form 15G is applicable for Indian residents under 60 years old, Hindu Undivided Family (HUF) and trust, form 15H is for residents who are 60 or above the age of 60 ^[1] . HUF cannot submit Form 15H ^[2] .

Form 15G helps people whose gross annual income is below Rs.2,50,000 (under the old tax regime) or Rs.3,00,000 (under the new regime) ^[2] . For senior citizens (people aged between 60-80 years of age), Form 15H helps in preventing TDS deductions if your annual income is less than Rs.3,00,000. In the case of super senior citizens , individuals who are above the age of 80- the basic exemption limit is Rs.5,00,000 for FY23-24 ^[2] .

When should you submit Form 15G or 15H?

Ideally, these forms have to be submitted at the beginning of the financial year to prevent TDS deductions on the income interest from the onset. You need to submit Form 15G/15H every year to claim tax exemption as their validity is only for a year. In case, you were unable to submit the form at the beginning, you can submit it any time of the year to avoid further deductions. To claim a refund of excess TDS deducted due to delay or non-submission of form 15G or 15H, you need to file your Income Tax Return (ITR) first.

After submission, your financial institution will process and assess your Form 15G/15H to ensure all the details mentioned are correct. Once submitted, you will get confirmation that your form has been received and processed. The bank or the financial organisation will verify the information to confirm whether you meet the eligibility criteria. When they make sure that all the details entered are correct and you qualify for the exemption, no TDS will be deducted from your interest income for the rest of the financial year. You should check your monthly bank statements regularly to ensure that TDS has not been deducted. In case you find any discrepancy, contact your financial institution immediately.

Eligibility Criteria for Form 15G

You need to meet the following conditions to qualify for tax exemption under Form 15G:

• The form should be submitted by an Indian resident below 60 years of age, HUF or trust ^[1] .
• You will qualify for this tax exemption only if your interest income is lower than the basic exemption limit, which is Rs. 2.5 lakhs under the old regime and Rs.3 lakhs under the new regime ^[3] .
• You should have any tax liability for that particular year. ^[4]
• A valid PAN is mandatory for filing the form. ^[4]

Eligibility Criteria for Form 15H

The key eligibility criteria for Form 15H is as follows:

• The individual who submits the form should be an Indian resident above 60 years of age ^[1].
• Your total annual income should be below Rs.3 lakhs (60-80 year-olds) or Rs.5 lakhs (above 80 years of age) ^[3] .
• Your net tax liability should be Nil.
• A valid PAN is necessary while filing Form 15H.

What are the different parts of Form 15G/15H?

Both Form 15G and Form 15H comprise two parts - Part 1 contains the personal details and estimated income of the individual applying for tax exemption ^[4] , and Part 2 lists the details of the bank or tenant that is in charge of deducting the TDS. Usually, Part 2 is filled by the financial institution, not the individual ^[7] . While Part 1 includes information such as name, PAN number, address, estimated income and investment details, Part 2 involves the PAN and TAN details of the entity. ^[6]

To submit form 15G/15H, you need to first log into your Banking account via an Internet banking portal, select the FD for which you want claim TDS using form 15G/15H. NAVIGATE TO THE ‘Quick Actions’ section and select ‘Submit form 15G/15H’. Once you have viewed the form, click ‘Proceed’ and add any additional information. After receiving an OTP on your registered mobile number, verify and complete the submission. Make sure to save the confirmation or acknowledgement after submitting the form for future reference. ^[3]

FAQs

Can the payee request the payer not to deduct tax at source and to pay the amount without deduction of tax at source?

^[5]

Yes, a payee can request the payer not to deduct TDS; however, they will have to declare their eligibility for tax exemption by submitting either Form 15G or Form 15H. Once the payer confirms that you meet the eligibility criteria, tax deducted at source will not be deducted.

How is Form 15G different from Form 15H?

These forms are submitted to ensure that the Tax Deducted at Source (TDS) is not deducted on the interest income if payee meets the applicable conditions. Form 15G applies to Indian taxpayers below 60 years of age while Form 15H is for residents above 60 years of age. Additionally, Form 15G qualifies Hindu Undivided Family (HUF) and non-individuals like trusts for exemption on TDS.

According to section 206AA of the income tax law, a declaration via Form 15G or Form 15H will be considered invalid if it is not accompanied by the PAN of the person making the declaration. If the declaration is without the PAN, then tax is to be deducted at higher of following rates:

• At the rate specified in the relevant provision of the Act
• At the rate or rates in force, i.e., the rate prescribed in the Finance Act
• At the rate of 20%