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Form 15G or Form 15H are self-declaration forms that show that an individual’s total income is below taxable slab hence tax is not to be deducted. But who can submit these? Is there any rule governing the submission of Form 15H & Form 15G?

Let’s check these today.

You can also download Fillable Form 15G In Word & Excel format.

You can also download Fillable Form 15H In Word & Excel format.

You can also download Fillable Form 15G & Form 15H In PDF format.

Anyone can avoid the TDS on income like interest on deposits with bank or post office, rent & interest on corporate bonds & deposits. One can use these to avoid TDS while taking a premature withdrawal from PF also.

It’s to submit to the relevant organization like bank or post office and asking them not to deduct the TDS.

Difference between Form 15H & Form 15G

form 15G15G form is submitted by the resident individual’s age below 60 years & by the HUF & Trusts.

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Whereas 15H form is submitted by the individual’s age above 60 years these are senior citizens & super senior citizens.

These forms are submitted every year related to each financial year at the start of the year with the relevant financial organization or bank.

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An important point about 15G or 15H form is – NRIs can’t take the benefit of these forms. These are for resident individuals only.

The myth related to Form 15H & Form 15G

Myth: Form 15H & Form 15G are filled to avoid TDS.

Realty: Form 15H & Form 15G are a declaration that you have tax liability below the taxable limit, hence the organization should not deduct TDS.

If your tax liability is over the threshold (2.5 Lakhs for Citizen below 60 & 3 Lakhs for citizens above 60 years & 5 lakhs for citizens above 80 years), you should let Tax be Deducted at Source. In case your total income after adjustments & rebates go below taxable limit, you can get a refund.

The Implication of Form 15G or 15H

The implication of 15G or 15H suggests that an individual is required to declare his total income & tax payable is NIL.

The total income mentioned in the form is the net taxable income. Net taxable income is, your total income less all the available deduction as per the income tax act.

These forms should only be submitted by an individual if tax-liability is zero.

When to submit Form 15G or 15H

There are many scenarios as per the total taxable income of an individual which shows when to submit 15G/15H. Below is the self-explanatory table with simple examples that will show when an individual CAN submitting 15G/15H.

Age Interest Income Other Income Taxable Income Eligibility
Below 60 Years – 15G 270000 130000 400000 15G not allowed as interest income is above exemption limit of 250000
20000 280000 300000 15G not allowed as taxable income is above exemption limit of 250000
200000 45000 245000 15G allowed as both conditions are satisfied
Above 60 years – 15H 280000 120000 400000 15H not allowed as taxable income is above exemption limit of 3 Lakh
320000 80000 400000 15H not allowed as interest income is above exemption limit of 3 Lakh
250000 40000 290000 15H allowed as both conditions are satisfied

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In Interim Budget FY 2019-20, the individuals with taxable income up to Rs 5 lakh in a financial year will not be required to pay any tax.

If we go a little bit deeper in the income tax law than it further states that an individual whose gross total income is above Rs. 5 Lakh and him able to reduce it to below Rs 5 Lakh by availing the deductions he is eligible to submit form 15G/15H.

Particulars Amount
Income from Salary/Pension 4,40,000
Interest from Bank FD Bank A 30,000
Interest from Bank FD Bank B 40,000
Gross Total Income 5,10,000
Deduction Under Section 80C – LIC Premium {50,000}
Net Taxable Income 4,60,000

In the above example, as your net tax liability is zero {Net taxable income less than Rs. 5 Lakh} and total interest income does not exceed Rs 2.5 lakh, hence, you can submit the Form 15G or Form 15H as applicable.

The forms 15G & 15H are a good tool to increase income in hand. In case you have FDs or interest generating products like Bonds/RD etc, the forms come in handy to avoid TDS which is not required.

Do let us know your views through the comments section below.

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