Form 15G and 15H are self-declaration forms that an individual must submit to the banks or financial institutions for non-deduction of tax from their interest income. This form is submitted to the bank by individuals as their income is below the exemption limit. These forms are to be filed in every financial year if the eligibility criteria are met. However, an individual is not relieved from filing Income tax just by submitting these Form 15G PDFs online and offline to the banks. The individuals must file their Income Tax returns and pay taxes even after submitting these forms.
To claim this benefit of not deducting TDS, PAN is required to be mentioned in these forms. There are two forms available for non-deduction of TDS namely 15G and 15H. However, the company and firm are kept away from these benefits, and resident individual or HUFs or trusts are required to submit their documents. These forms are to be submitted by those individuals whose total interest income for the year is less than INR 2.5 lakh or INR 3 Lakh.
This Form 15G/H submission is significant only for resident individuals and not on non-residents. These form 15G PDFs are appropriate only for residents with ages less than 60 years. This Form 15G is exclusively used for non-deduction of tax on various types of incomes like interest from fixed deposits, recurring deposits, rental income, etc.
Eligibility Criteria for Form-15G
These form 15G PDF is used for non-deduction of Tax from the interest for following the below-mentioned conditions.
Need of Form 15G
Form 15G can be submitted by any person other than a company or firm as per section 197A(1) and (1A) of the Income Tax Act,1961. Form 15G is to be submitted for non-deduction of TDS on interest income below the basic exemption limit. This form 15G applies to residents below 60 years of age.
Form 15G is not required to be submitted if the total interest income for the year exceeds the exemption limit defined by income tax act. Thus, form 15G pdf can be issued to those who estimate their income on which total income is zero and income is calculated after considering allowances and deductions.
Income for which Form 15G needs to be submitted.
Fields to be filled up in Form 15G:
Actions To Be Taken
If the individual forgets to submit this form 15G/H to the banks or financial institutions, then some actions need to be taken for rectification.
There are certain things to remember before filling up and submission of Form-15G/H that are pointed out below.
To claim this benefit of not deducting TDS, PAN is required to be mentioned in these forms. There are two forms available for non-deduction of TDS namely 15G and 15H. However, the company and firm are kept away from these benefits, and resident individual or HUFs or trusts are required to submit their documents. These forms are to be submitted by those individuals whose total interest income for the year is less than INR 2.5 lakh or INR 3 Lakh.
This Form 15G/H submission is significant only for resident individuals and not on non-residents. These form 15G PDFs are appropriate only for residents with ages less than 60 years. This Form 15G is exclusively used for non-deduction of tax on various types of incomes like interest from fixed deposits, recurring deposits, rental income, etc.
Eligibility Criteria for Form-15G
These form 15G PDF is used for non-deduction of Tax from the interest for following the below-mentioned conditions.
- The income for the fiscal year is less than INR 2.5 Lakh
- The Indian citizen is less than 60 years old.
- The Indian citizen has zero tax liability.
- However, HUFs with income less than INR 2.5 Lakh are eligible for Form 15G submission.
Need of Form 15G
Form 15G can be submitted by any person other than a company or firm as per section 197A(1) and (1A) of the Income Tax Act,1961. Form 15G is to be submitted for non-deduction of TDS on interest income below the basic exemption limit. This form 15G applies to residents below 60 years of age.
Form 15G is not required to be submitted if the total interest income for the year exceeds the exemption limit defined by income tax act. Thus, form 15G pdf can be issued to those who estimate their income on which total income is zero and income is calculated after considering allowances and deductions.
Income for which Form 15G needs to be submitted.
- Interest Income
- TDS on EPF withdrawal
- TDS on income from corporate bonds
- LIC maturity receipts
- TDS on post office deposits
- TDS on Rent
- TDS on Insurance Commission
Fields to be filled up in Form 15G:
- The name of the individual applying for non-deduction is to be mentioned clearly.
- The address of the individual is to be mentioned.
- Contact Details.
- PAN of such individual.
- Estimated Annual Income.
- Financial year in which such declaration must be given.
- The Total number of Form 15G applicable for the Financial Year.
- Aggregate Income for the year.
- The place, Date, and signature of the applicant/HUF also need to be mentioned.
Actions To Be Taken
If the individual forgets to submit this form 15G/H to the banks or financial institutions, then some actions need to be taken for rectification.
- File an Income Tax return.
- Submit form 15G/H immediately.
- The individual must have supporting documents at the time of the assessment process.
There are certain things to remember before filling up and submission of Form-15G/H that are pointed out below.
- The individual or HUF should not submit such a declaration if the income is taxable for such financial year.
- However, the individual or HUF will be penalized by the income tax department under section 277 of the IT Act,1961 for fraudulent submission of such forms.
- This form is not a substitute for an Income tax return as the concerned person must file ITR separately.
- These form 15G is not required to be submitted by Non-resident individuals.
- If TDS is deducted even on submission of form 15G, a refund can be claimed by filing an Income Tax return.
- The submission of form 15G may sometimes lead to excess payout if the individual is eligible for a TDS deduction.