What is Form 15G and Form 15H

Form 15G and Form 15H are forms which can help a person avoid TDS incase one does not have to pay income tax at the end of the year. Form 15H is for senior citizens and form 15G is for others. In this article we will see how a person can avoid payment of TDS by submitting these forms 15G and 15H.

form 15H and form 15G

Suppose your Father has invested Rs 20 lacs in a Bank FD . He gets interest @8% , that’s Rs 1.6 lacs per year . Now ideally he is not supposed to pay any tax on this because this income is less than the limit . But bank cuts the TDS @10% and pays Rs 16,000 to the govt as TAX (Note that TDS is cut only when interest income is more than 10,000) . To get back this 16,000 back , your father will have to file tax return and then wait for the tax refund to come back .

What is TDS

TDS means tax deducted at source , what it means is that instead of paying tax at the end of the year , the tax will be levied on the income as and when it arises and hence taken in advance with assumption that anyways the tax has to be paid later . So TDS will arise when your salary comes , when interest of your bank account comes , winning of Lottery and many such things, the rate at which TDS is cut varies from one thing to another and also its different for Resident Indian and NRI’s . Note that in case of Bank deposits , the TDS rate is 10% provided one has furnished his PAN details , otherwise if PAN details are missing the TDS rate is 20% , where as for NRI’s who earn interest on their NRO’s account are subject to 30% TDS .

Download Form 15H & form 15G

Let me tell you what are form 15G and form 15H . In one line, These forms are self declaration forms to be submitted if total taxable income of a person is going to be less than the permissible limits . So if a person is sure that he will not be required to pay any tax in a particular year , then he can submit for 15H or 15G to avoid deduction of TDS from his interest income and other kind of incomes where TDS is applicable . Note that these forms are not applicable for NRI’s.

Form 15H can be submitted by a person who is above 60 yrs (w.e.f 1/4/11) . An important point here is that a person should have not have paid any tax in the previous year . So only if one didn’t have any tax liability in previous year can submit form 15H . It should be submitted at the start of the year itself , so that TDS can be avoided , there is no point in submitting this at the end of financial year because by then TDS would be cut anyways . Form 15H can not be submitted by HUF’s .

Form 15G has the same purpose as Form 15H , just that this form should be submitted by a person below 60 yrs old (w.e.f 1/4/11) . Also this form can be submitted by HUF’s . Rest all things are common between 15G and 15H .

Download  Form 15G 

Download Form 15H

How NRI’s can avoid TDS or reduce the interest on TDS

Any Non Resident Indian from whose Income the Tax is likely to be deducted at source can apply to obtain exemption for tax deduction provided his/her taxable Income in India is less than Rs.1,50,000/- per year. Or if the tax likely to be deducted is more than the estimated tax liability, is eligible to apply for certificate permitting deduction of tax at lower rate. The income tax department generally issues Exemption Certificate for a period of 1 to 3 years.

Any NRI who has obtained Exemption Certificate need to submit it to the Payer of the income who will follow the certificate and not deduct tax or may deduct at a lower rate as given. If there is genuine mistake in representation for obtaining the Exemption Certificate, no penalty is attracted. However you may have to pay interest if you are liable to pay income tax later on. More info on this link

Thanks for Lokesh for this info

These forms have to be furnished separately for each financial year. For eg – If you have a 5 year FD, you’ll have to furnish Form 15G/Form 15H separately for each year. It is advised that you do the same in the beginning of the year to avoid any wrong dedcution of TDS. Are these form 15G and Form 15H applicable to you

379 CommentsAdd Comment

  1. Dear Sir, after death of my father my mother got around 15 lakh in june 2014, she divided the sum among other two of my brothers and me and now each of four member has around 4 lakh, we all fixed deposited it in our bank accounts but very late in feb 2015, but me and my brothers do not earn anything except my mother, she gets pension can we all fill form 15 G for the earning through fd’s from 1st April 2015 to 31 st march 2016, individually, as individually total earning do not crosses 2 lakh 50 thousand for any member? . one more question is should one include the interest which one get after 31st march 2016 for calculation for form 15G now? eagerly waiting for your reply . Thank you

  2. In the just concluded financial year my total tax liability was zero. I had submitted the Form 15G at the start of that financial year i.e. April-2014. Now, in this financial year I have taken a job and have a salary by which my tax slab falls in the 10% Income tax slab. I hold FDs in different banks whose total interest income will not go above 10000 in that particular bank. I have submitted form 15G at the start of this financial year too i.e. in April 2015.
    In this case:
    1. Have I done the right thing in submitting form 15G?
    2. Do I need to show the interest income (under column of interest from other income sources) while filing my Income Tax?

  3. is TDS only applicable on interest received on FDs and RDs ? does filing Form 15G/H also make provision to reduce FD or RD amount from taxable income ?

  4. Antony

    Hi Manish

    I need assistance in filling Form 15G , Can you please let me know in which schedule do i fall under in column 22 , 23 , 24 because i just hold one salary account from my pervious company and i do not have any other mode of income part from that . Also if possible can i get a sample form filled for Form 15G so that i can fill it accordingly please .

  5. sudershan

    Whether a senior citizen pensioner (who’s income tax liab is > 10000 from salary+interest) is in order in filing Form 15-H and and he pays full tax as Advance Tax by 15th Mar in lieu of TDS in lieu of the following ?
    “As per section 207, a resident senior citizen (i.e., an individual of the age of 60 years or above) not having any income from business or profession is not liable to pay advance tax”.

    • Hi sudershan

      Your cases is a bit complex and I think we are not the right people to comment on it.

      My suggestion would be hire someone who is professional in this area and consult them

      Manish

  6. sangeeta

    Hi,

    My sister is house wife and she is having no earning.But she is having FD aprox 5lac(Interest rate is 8.25%) for this(1Year) in SBI account.She can fill the form 15G or not.

  7. KRISHNA MURTY MOTAMARRI

    DEAR SIR
    I will receive interest income from two finance companies ( from fixed deposits)
    for the year 2015-16 of Rs 3,00,000/- ( not having any other income) and i would like to invest Rs 50,000/- in 80c/80cc/80ccd. Whether I can submit 15-g to finance companies. or I have to claim a refund of Rs 30,000/- ( being 10% of TDS) duly submitting the IT return.

    THANK YOU IN ANTICIPATION OF YOUR REPLY SIR

  8. deepak

    If i invest 1lac each in 3 branches of sbi bank. Interest earned for 1 branch is less than 10k. It mean i dont need to submit 15 form right?

  9. NEHA

    hello sir,
    i want to know if i am having joint FD with my husband who is salaried ,
    and the first name is mine.
    am i liable to fill the form 15g??

  10. mrigen

    Sir, I am a salaried person And have monthly salary gross Rs 17,000/= . I opened a recurring deposit of Rs. 10,000/_ monthly in the year Jan/14. for 3 years. Am I eligible for TDS ? Can I be benefit ed by submitting 15G form? So far no income tax have been deducted from me by the govt.

  11. harman

    Sir please explain.. My gross salary is 270000 which is taxable if i invest rs 100000 under 80c . can i submit 15 g form ?

  12. praveen

    sir
    i had deposited 64000 in bank for one time. the bank officials said that u are liable to pay TDS. the above said income deposited for saving purpose only ..
    even sb deposits are also liable for tds purpose? how can claim my money? in what sectors tds is not applicable

  13. Manish kumar meena

    Sir,
    My mothers(48) annual pension is 275,000
    Plus she earns 95000 from her two FDs
    Bank 3yrs ago told us to submit 15g, we naively submitted it (there after every year)
    She havent filed any income tax returns yet
    As now when i became some tax literate i think bank misled us on submitting these forms
    Whats the way out?

  14. pramod kumar

    sbi bank a/c me ek PAN se kitne a/c ka KYC ho sakta hai?kyoki mera sbi ke ek branch me tin a/c ( salary, PPF,Joint a/c jo wife ke naam se hai) hai aur ek a/c joint dusre stste me hai.maine salary a/c se ek FD, tin saal ke liye karvaya tha.lekin bank ne mere FD se 20% TDS kat diya hai.ve bol rahe hai ki apka PAN salary a/c se nahi juda hai.jabki maine sabhi a/c ke KYC ke liye PAN card ki copy di hai.ve bol rahe hai ki apka pan sirf do a/c me jud sakega.agar apko salary a/c me PAN judvana hai to kisi ek a/c PAN hataiye.mai kya karu?

  15. Theji

    Hi Sir

    I have a done an FD for Rs. 7000 in 2012 in SBI.
    On 31-Mar-2013, I could see the following three transactions on my deposit account.

    31-Mar-2013 (31-Mar-2013) TAX ON PREVIOUS INT 1,763.00
    31-Mar-2013 (31-Mar-2013) TAX DEDUCTION 136.00
    31-Mar-2013 (31-Mar-2013) CREDIT INTEREST 680.00

    Here I do not understand the ‘TAX ON PREVIOUS INT’. Please let me how this is arrived at. Moreover I do not have any source of income, so I do not file returns. When I login to Income tax site and check my Form 26AS, I do not see this tax there at all. Please help me

  16. NR Narasimha

    Hi manish,
    I had opened FD in Dec 2012 for an amount Rs 50,000 for 3 Years and got matured in Dec 2014 with an interest of Rs 16500.
    My question is whether
    1. for an amount Rs 6500(16500-10000) bank has to deduct TDS(10% of Rs 6500 i.e Rs 650 ) or
    2. the interest is apportioned year wise so that 2014-15 year ends with only Rs 5500(16500/3) and no need to deduct TDS as the interest amount is less than Rs 10000 .
    But the Bank has deducted Rs 948 towards TDS. please clarify
    Regards
    Narasimha

  17. RAJESH

    Hii Manish,
    What about if I am a consultant and get deducted TDS at source . Can I submit form 15 G to my company and ask them not to deduct tax ? My tax liability is zero actually because of investments. But companies deduct TDS on my professional services. Can this form useful thr ? Pls suggest.

    Rajesh

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