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All you need to know about Form 15G & 15H

Fixed deposit is the most preferable option of investment for attractive returns and a definite interest rate. However, the interest earned from fixed deposits is imposed with a certain tax. According to the current Budget, the threshold of Tax Deducted at Source (TDS) has been increased from Rs. 10,000 to Rs. 40,000 for the post office and bank deposits. Whereas in the case of Non-bank Financial Companies (NBFCs), the amount is the same, that is Rs. 5000. When it comes to avoiding the deduction of TDS, Form 15G and 15H come into play. Read on to find out more. 

What is Form 15G?

Form 15G is used to avoid the deduction of TDS on your income. For this, you need to fulfil the below-mentioned conditions:

  • You have to be an Indian resident, trust, Hindu Undivided Family (HUF), or any assessee, but not a firm or a company

  • Your age should be less than 60

  • The computed tax on your entire income is zero

  • The total interest of your income for a year should be less than the limit of basic exemption for that particular year. For the fiscal year 2020-2021 (AY 2020-2022), this limit is Rs. 2.5 lakh

What is Form 15H?

Form 15H is used to prevent the deduction of TDS if your age is above 60 years. You need to fulfil the below-mentioned conditions to use it:

  • You have to be an Indian resident and an individual

  • Your age should be at least or above 60 years

  • The net computed tax on your entire income is zero

Difference Between Form 15G & 15H

There are some basic differences between Form 15G and 15H. The below-mentioned table is a quick summary of those variations:

Type of Customer

Details

Type of Form

Limit of Basic Exemption

Individuals

A resident of India under the age of 60 years

Form 15G

Rs. 2.5 lakh

Non-Individuals

Trust, club, society, Association, and HUF

Form 15G

Rs. 2.5 lakh

Senior Citizens

A resident of India above the age of 60, but are below the age of 80 years

Form 15H

Rs. 5 lakh

Super Senior Citizens

A resident of India whose age is above 80 years

Form 15H

Rs. 5 lakh

How to Fill Form No 15G and 15H?

Some of you might face some issues while filling the forms. To know how to fill Form 15G or 15H, you can follow the given steps:

  1. Fill details in Form 15H and/or 15G

  2. In addition to your declaration, attach a copy of your Pan Card

  3. Submit your forms to the financer

How to download Form 15G & 15H in PDF?

If you want to download Form 15G or 15H, the process is very simple. Follow the steps given below:

  1. Visit the official website of the Income Tax Department

  2. In the 'Frequently Used Forms,' search for 15G and 15H Forms based on your requirement

  3. Press on the icon of PDF on the side and get your form downloaded.

Once you have completed downloading it, print out its three copies. Make sure you sign the documents before submitting to the financer. 

FAQs

  • ✔️What is the 15G Form?

    It is the declaration filled out by the holders of fixed deposits of the bank to prevent the deduction of TDS. However, you must not be more than 60 years of age. 

  • ✔️Why is Form 15G required?

    Form 15G is essential to avoid TDS if your total taxable income in the year of finance is not exceeding Rs. 5 lakh, whether you choose the existing regime of tax or the new one. 

  • ✔️Who is eligible for Form 15G?

    The eligibility criteria of fulfilling the Form 15G are as follows:

    • You must be an individual and not a firm or a company

    • You should be an Indian resident

    • Your age must be less than 60

    • The calculated liability of the tax on the entire taxable income should be nil for the FY

    • The interest of your total income for the fiscal year should be less than the exemption of the basic limit

  • ✔️What is the 15G Form used for?

    Form 15G is used to ensure that no TDS is deducted from the interest on your income for the FY. 

  • ✔️Can I fill Form no 15G online?

    Yes, you can fill Form no 15G online.

  • ✔️What happens if Form no 15G is not submitted?

    If you don't submit Form no 15G on time, your TDS will be immediately deducted. 

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