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Discussion > Income Tax > Efiling >

What is form 15g and form 15h

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Asst.Manager-Finance & Accounts


[ Scorecard : 355]
Posted On 20 February 2012 at 12:49 Report Abuse

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 & 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 .



Attached File : 35372 934390 f15h.doc downloaded 1078 times

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Tarun M Guntanur
Pursuing CA Final


[ Scorecard : 299]
Posted On 23 March 2012 at 23:10

 

Every person holding Deposits with Banks/Financial Institutions/Companies must have heard about these forms 15G & 15H. As a depositor, you will be required by the bankers/financial institutions/Companies to submit Form 15G/15H for non deduction of tax at source (TDS). But, how many of us really know, what this Form 15G/15H is and what are the implications of filing the same? This article is aimed at throwing some light on the facts and procedures with regard to these Forms.

What is Form 15G/15H ?

Form 15G/15H is a declaration to be filed by an Individual or a person (not being a company or a firm) for the purpose of claiming certain payments (Dividends/Interest on Securities/Interest other than interest on Securities/National Savings Scheme/Interest on Units) without the Deduction of Tax at Source (TDS).

Who can give Form 15G/15H

Form 15H shall be given by persons above 60 years of age.

Form 15G shall be given by persons below 60 years of age.

“Person” means Individual (or) a person (not being a company or a firm). Hence even HUFs and Association of Persons can also make use of these forms.

What are the other Conditions for submission of Form 15G/Form 15H

a)      The income of the declarant should be below taxable limits during the previous year.

 

For Example for the year 2011-12, the taxable limits for various types of assessees are as follows :-

 

In case of resident Individuals below 60 years of age-    Rs. 180000/-

In case of resident Women below 60 years of age      -    Rs. 190000/-

In case of resident Individuals 60 years or above age -    Rs. 250000/-

In case of resident Individuals 80 years of above age -   Rs. 500000/-

b)      The tax on estimated total income for the previous year should be “Nil”.

c)      Type of Payment and declarant

Interest on Securities        -           Other than Company or firm

Dividend                           -           Resident Individual

Interest other than

Interest on Securities        -           Other than Company or firm

National Savings Scheme -           Resident Individual

Interest on Units               -           Other than Company or firm

d)     PAN (Permanent Account Number) is mandatory for making declaration using Form 15G & 15H w.e.f 01/04/2010.

Consequences of False/Incorrect Declaration :-

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 -

(i)                 in a 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 to seven years and with fine;

(ii)               in any other case, with rigorous imprisonment which shall not be less than three months but which may extend to three years and with fine.

Myths & Facts about Form 15G & Form 15H

Sl. No.

 

Myth

Fact

1

Anybody who wishes to avoid tax deduction can make use of Form 15G/15H

Only persons with income below taxable limits and Nil Tax liability can only make use of this form.

2

Once declaration is given in Form 15G/Form 15H, there is no need to declare this income in return of Income.

Irrespective of the fact whether the Form is used or not, the respective income should be compulsorily declared in return of income.

3

Once declaration is given in Form 15G/Form 15H, there is no need to pay tax on the same.

As per the provisions, only persons with NIL tax liability only can give these forms. But if there is a tax liability, they have to necessarily pay the requisite tax. On the other hand, by payment of tax they run the risk of giving a wrong declaration. Hence before giving Form 15G/15H, please be doubly careful.

4

Form 15G & 15H are submitted only to the banks/Financial Institutions/Payer.

This is partly correct. The person who receives the Form 15G/15H is required to submit one copy of the Form to the Commissioner of Income-tax . Hence the information is passed on the Income-tax department and the Income-tax Department can make further enquiries on the same.

5

Submission of Form 15G/15H once is sufficient.

No. These forms shall be submitted every Financial year at the beginning of the Financial year.

6

It is enough that irrespective of the fact that deposits are held in different branches, a single Form is sufficient.

No. These forms should be submitted to each and every branch where you hold the deposits. For example, if you hold deposits in 3 different branches of State Bank ofIndia, this declaration shall be given for each branch separately.

7

Since my Income is below taxable limits and tax is NIL , I do not have to submit the PAN details with the declaration

No. Every person giving declaration using Form 15G/15H shall compulsorily provide the PAN details along with the declaration irrespective of their Income/Tax status. Otherwise tax will be deducted @ 20% on the Interest (w.e.f 01/04/2010)

8

Form 15G/15H can be used for not deducting TDS for all types of payments (viz.,) Contract payments, Professional fees, rent,etc.,

These forms can be used only for payments in the nature of Interest of Securities, Dividend, Interest other than Interest on Securities (Bank/Company Deposits) , NSS & Interest on Units. For other types of payments, these forms cannot be used.




Total thanks : 2 times




Rammohan
Retired


[ Scorecard : 50]
Posted On 19 April 2012 at 10:07

I would request a few clarifications from the authors of the two posts above.

  1. The link in Mr. Nagesh’s post for form 15H shows the specimen form under rule 29C(3) whereas my bank has provided me with a form 15H under rule 29C(1A). Which is the form to be used for submission to the bank? There are a few differences between the two forms:

Form - Rule 29C(3): Does not mention that this is for senior citizens, does not have the declaration that the declarant is a resident of India, does not mention about section 88B.

  1. Is section 88B still in force? Since the past several years, the main I-T Act has provided separate slabs and tax rates for senior citizens, and so the reference to section 88B in the form under Rule 29C(1A) seems to be redundant.
  2. Mr. Nagesh says that NRIs are not allowed to submit forms 15G & H. However, the forms given by my bank have a clause ‘that I am/am not resident in India within the meaning of section 6 of the Income-Tax act, 1961’. This wording implies that non-residents too could submit these two forms, even though under section 197A, certain forms cannot be submitted by non-residents. Why is that forms 15G/H still provide an alternative about the declarant being a resident or not?
  3. Form 15G, clause 4 requires that the aggregate of the income from the 5 types of income mentioned therein, does not exceed the maximum amount which is not chargeable to tax. This would mean that if a person (not a senior citizen) has a total income of say Rs 2.5 lacs from bank deposit interest, and has no other income from any other source, then he cannot submit form 15G even if he were to deposit Rs 1 lac in section 80C schemes. Is this correct? (There is no clause in form 15H under Rule 29C(1A), corresponding to clause 4 of form 15G.)
  4. Both forms require a declaration that the tax on the estimated total income of the declarant from all sources would be nil.  Since ‘total income’ is calculated after deduction under Chapter VI which includes section 80C, would not the requirement in clause 4 of 15G be unfair to a person in the case mentioned in query 4 above, if he is not a senior citizen, since he would satisfy clause 3?
  5. Is it compulsory for a senior citizen to submit only form 15H? Can he not submit form 15G, if he is unable to get a copy of form 15H? Some banks refuse to accept form 15G from senior citizens. Since the requirements of 15G are more stringent than those of 15H, why should banks refuse to accept 15G from senior citizens?



CA Akshay Joshi
CA


[ Scorecard : 383]
Posted On 02 May 2012 at 19:46

 

Is form 15G be valid for Income from Agency Commission (General Insurance Agent), with income less than basic exemption limit and with age less than 60 years.?

 

plz reply ASAP




Rammohan
Retired


[ Scorecard : 50]
Posted On 04 May 2012 at 12:32

The wording of form 15G clearly shows that it is applicable for dividend from companies, interest on securities, interest on deposits, income from Units and withdrawals from NSS accounts. Hence, in my view, it cannot be used for claiming exemption from TDS in respect of agency commission mentioned by you.




Nikhail
0


[ Scorecard : 240]
Posted On 01 June 2012 at 01:07

Sir my client has taxable income and by mistake he has submitted Form 15 G for financial year 2011-12 and financial year 2012-2013..

What should we do now??

PLease help...




RONAK
STUDY


[ Scorecard : 30]
Posted On 13 December 2012 at 12:46

IN case individual total income is above basic limit and tax paid but after tds has deduct total amount is refunded. then person should apply for 15g form.e.g: gross total income 240000 less 80c 35000 net total income 205000 rs tax is paid 800rs. tds refund amount 7000rs..




abhishek
article


[ Scorecard : 29]
Posted On 03 June 2013 at 23:31

time limit for bank send form 15g/15h to income tax deparment please reply hemantsinghal20 @ gmail.com


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