How to fill Form 15G and 15H to avoid TDS for 2017-2018

How to submit Form 15G and 15H to avoid TDS for 2017-2018

CBDT has made filing Form 15G and Form 15H lot simpler by putting it online. Assesse seeking non-deduction of TDS from certain incomes is required to file a self-declaration under Form 15G or Form 15H and submit it to the deductor which is now can be done either in paper form or electronically. Earlier the same was to be submitted only in paper form.

Section 194A of the Income Tax Act, 1961 mandate all banks to deduct TDS on all interest payments exceeding Rs. 10,000 in any financial year. Therefore, if you are generating interest income more than 10,000, Bank will have to deduct TDS on such income and pay directly to the government on behalf of you. Bank will issue a TDS certificate in Form 16A against the TDS payment made on your behalf and the same will reflect in your Income Tax Form 26AS.

It should also be noted that, rules in section 194A is modified. Earlier the limit of Rs 10,000 for TDS deduction was separate for each bank branch. However, after computerization, this limit of 10,000 is now not separate for all bank branches but consolidated for all branches. If your interest income exceeds 10,000 a year, the bank will deduct TDS of 10%. But if you do not furnish PAN details, the TDS rate will be higher at 20%

What is Form 15H & 15G ?
  • Form 15G-15H and Income Tax forms which required to be submitted by a Specified person, earning a specified income to the payer for Non deduction of tax at source.
Who can submit form 15G ?
  1. A person who is resident in India can submit form No. 15G. So an NRI cannot submit this form. 
  2. Any person other than a Company/Firm can submit form No. 15 G. So any Individual and HUF can submit form No. 15G.
  3. However, it is not that every Individual or HUF can submit form No. 15G. Only the individual or HUF, whose tax on the estimated income for the year is nil and the amount of interest income from all the sources does not exceed the minimum exemption limit, can submit this form.
  4. So for being eligible for you to submit this form, you need to satisfy both the above conditions. 
  5. In a situation where due to various deductions the tax payable on total income may be nil but if the total amount of interest income is expected to exceed Rs. 2.50 lakh then you cannot submit this form.
  6. The total interest income for the financial year should not exceed Rs 2.5 lakhs.
  7. You need to submit form 15G, if your interest income is likely to exceed the limit of 10,000.
  8. Estimated tax for the financial year should be nil.
  9. Form 15G should be submitted to all the deductors to whom you advanced a loan i.e. if you have fixed deposit in three different bank branches, you must submit Form 15G to each branch.
  10. You need to submit for 15G if interest on loan, advance, debentures, bonds or say interest income other than interest on bank exceeds 5000/-
  11. It has a validity period of one financial year only. In case you want to apply for Nil/Lower deduction on Interest in another financial year, you will have to refurnish these forms again to all the deductors
Who can submit form 15H?
  1. Any resident Individual who is 60 years and above of age or completes sixty years during the financial year can submit form No. 
  2. You need to submit form 15H, if your interest income is likely to exceed the limit of 10,000.
  3. Estimated tax for the financial year should be nil.
  4. Form 15H should be submitted to all the deductors to whom you advanced a loan i.e. if you have fixed deposit in three different bank branches, you must submit Form 15H to each branch.
  5. You need to submit for 15H if interest on loan, advance, debentures, bonds or say interest income other than interest on bank exceeds 5000/-
  6. It has a validity period of one financial year only. In case you want to apply for Nil/Lower deduction on Interest in another financial year, you will have to refurnish these forms again to all the deductors
  7. The total amount of interest income for senior citizen above 60 years ( but less than 80 years) and for above 80 years should not exceed 3 lakhs and 5 lakhs respectively for 15H Form.
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What type of Income/sections under which Form 15G & 15H can be given?
Following sections/type of Income under which eligible person may submit form 15G /15H: Mainly these forms are furnished to no deduction of TDS by Banks/Other person on payment of Interest
  1. Section 193 - Interest from Securities -Like eligible Govt /PSU bonds etc
  2. Section 194 - Dividends -Dividend from shares etc (presently exempted on receipt)
  3. Section 194A - Interest other than securities -Like interest from Fixed deposit/from loan to other person
  4. Section 194EE -Nation saving scheme (NSS) 
  5. Section 194DA - payment of Taxable Insurance maturity amount
Whether a Person without PAN Card submit Form 15G/15H ?
  • No, If a person does not have Pan then he cannot submit form 15G and 15H and Tax shall be deducted at higher rate under section 206AA. 
  • Further if he has not submitted his pan on form 15G /15H TDS will be deducted at 20%.
Whether a Non-resident person can submit form 15G/15H ?
  • No, NRI can't submit 15G or 15H.
I do not have new form 15G or 15H. From where I may get it?
  1. Download 15 G (For Less than 60 years)
  2. Download 15 H (For above 60 years)
You may Submit 15G and 15H online
Vide Notification No 76/2015/F. No 133/50/2015 (Check Here) - dated 29th September 2015, Ministry of Finance, Form 15G and Form 15H can be furnished in any of the following modes
  1. Paper Form (Download here 15G and 15H)
  2. Electronically (Visit you bank branch with all your FDs, RDs and other A/Cs and a Photocopy of your Pancard )

New Form 15G/15H has Two Parts

  • Part 1 – This section is to be filled by the person (individual) who wants to claim certain ‘incomes’ without TDS.
Form 15G Part 1 section
  • Part 2 – This section is to be filled by the person / institution responsible for paying the income.
Form 15H Part 1 section how to fill

How to fill new Form 15G/15H?

1. Name of Assessee (Declarant) - Your name as it appears in PAN card 

2. PAN of the Assessee - Your PAN number

3. Status - Write Individual or HUF as applicable

4. Previous year (P.Y.) (for which declaration is being made) - For e.g. you are making the declaration for FY 2017-18 (i.e. for April 1, 2017 to March 31, 2018), the previous year field would be FY 2016-17 and Assessment year (AY) will be 2018-19.
  • In terms of Income Tax Guideline, Income earned in particular year (e.g in 1-4-2017 to 31-03-2018) will be taxed in next financial year. So, the Financial Year to which income belong is termed as Previous Year i.e The financial year to which the income pertains.
5. Residential Status - Resident Indian or NRI. Only resident Indians are eligible to fill form 15G/H.

6. Flat/Door/Block No.  - Your Address
7. Name of Premises - Your Address
8. Road/Street/Lane - Your Address
9. Area/Locality - Your Address
10. Town/City/District - Your Address
11. State - Your State
12. PIN - Your Pincode
13. Email - Your Email
14. Telephone No. (with STD Code) and Mobile No. - Your Phone/Mobile Number

15. Check Below
  1. Whether assessed to tax under the Income-tax Act, 1961: (Yes or No) – Mention ‘Yes‘ if you have filed income tax return in last 6 financial years.
  2. If yes, latest assessment year for which assessed – Mention the latest assessment year in which you filed your Income Tax return. (Assessment year is one year next to financial year For e.g. For FY 2017-18, the AY would be 2018-19)
16. Estimated income for which this declaration is made – This income is for the investment you are giving the declaration. For e.g. you have FD of Rs 1 lakh at 7.5% interest for 1 Year, your estimated income for the financial year would be Rs 7500.

17. Estimated total income of the P.Y. in which income mentioned in column 16 to be included - Calculate your total income from all sources, salary, stipend, interest income, any other income that you have earned during the year. Include the income mentioned in 16. above.

18. Details of Form No. 15G other than this form filed during the previous year, if any 
  1. Total No. of Form No. 15G filed - Give the number of Form 15G you have submitted before this form in FY 2017-18.
  2. The aggregate amount of income for which Form No.15G filed - Total income for which Form 15G has been filed.
19. Details of income for which the declaration is filed
  1. Identification number of relevant investment/account, etc. - Account number of FD, RD, National Savings Schemes, life insurance policy number, employee code, etc.
  2. Nature of income - Income from Interest
  3. Section under which tax is deductible - 194A
  4. Amount of income - Income earned from FD, RD, National Savings Schemes, Life Insurance policy number etc
For e.g. You have a FD of Rs 1 lakh at 7.5% interest for 1 Year, your estimated income for the financial year would be Rs 7500. you need to fill as follows:
  1. Identification number of relevant investment/account, etc. – FD Account number
  2. Nature of income – Income from Interest
  3. Section under which tax is deductible – 194A
  4. Amount of income – Rs 7,500
Note - Disclose deposits of Rs 2 lakh or more post note ban in new ITR forms - Those who deposited cash of Rs 2 lakh and more in their accounts during the demonetisation drive will have to make a declaration in their income tax returns for the fiscal year that's just ended, as a follow up to the government's efforts to eliminate black money through the note-swap exercise. 

Check whether you eligible to fill 15G or 15H

How to fill Form 15G and 15H

Do not submit the form if such income has to be Clubbed with the income of another person
  • Form 15G should not be submitted if your income has to clubbed with someone else. Interest income from money invested in a FD for a non-earning spouse or a child, has to be clubbed with the income of the depositor. In such a case Form 15G cannot be submitted. PAN of the depositor should be provided and TDS should be deducted in the name of the depositor. 
Penalty for False Declaration on 15G/H
  1. Any person making a false statement in the declaration shall be liable to prosecution under section 277 of the Income-tax Act, 1961, and on conviction be punishable:
  2. In case where tax sought to be evaded exceeds one lakh rupees, with rigorous imprisonment which shall not be less than six months but which may extend up to seven years with fine;
  3. In any other case, with rigorous imprisonment which shall not be less than three months but which may extend up to three years and with fine.
Important Points:
  1. You need to submit the declaration at the start of every financial year to all the banks, companies where you have fixed deposits or recurring deposits.
  2. Always attach a copy of PAN card while submitting the form.
  3. In the case of joint accounts, the form should be submitted by the first account holder.
  4. The forms need to be submitted in all branches where you have investments. For e.g. If you have opened FD in 4 branches of ABI, you need to submit the above from in all 4 branches separately.
  5. 15G/15H are not meant for NRIs, companies or firms
  6. Form 15G/15H should be submitted every financial year. It is always better to submit the 15G/15H form at the start of the financial year to avoid any TDS deduction for the financial year. If you have submitted late and TDS is already deducted, you need to file IT return to get back such tax deducted. (Assuming you tax liability is NIL for FY)
  7. Form 15G/15H should be submitted to each and every branch where you hold your deposits.
  8. Form 15G/H is just to prevent the hassle of TDS and later seeking a refund. You would need to file income tax return if you so mandated by law.
  9. Do not submit Form 15G/H if you are not eligible to do so.