Form 15G & Form 15H under Income tax act

Everyone is aware that Form 15G and form 15H are used for avoiding the TDS deduction while computing the interest earned during the financial year. In this article we are discussing important points to remember while submitting the Form 15G and Form 15H to the deductor. We have also included frequently asked questions and answers on Form 15G and Form 15H. Reader can download the latest Form 15G and Form 15H in Excel, Word and PDF format from the links given at the bottom of the article.

Form 15H :- Declaration under sub-section (1C) of section 197A of the Income-tax Act, 1961, to be made by an individual who is of the age of sixty-five years or more claiming certain receipts without deduction of tax.

• Form 15F can be submitted only by Individual above the age of 65 years.
• Estimated tax for the previous assessment year should be nil. That means he did not pay any tax for the previous year because his income is not coming under the taxable limit.
• This form should be submitted to all the deductors to whom you advanced a loan. For example you have deposit in three SBI bank branches Rs.100000 each. You must submit the Form 15H to each branch.
• Submit this form before the first payment of your interest. It is not mandatory but it will avoid the TDS deduction. In case of the delay, the bank may deduct the TDS and issue TDS certificate at the end of year.
• You need to submit form 15H to banks if interest from one branch of a bank exceeds 10000/- in a year.
• You need to submit for 15H If interest on loan ,advance, debentures , bonds or say Interest income other then interest on bank exceeds 5000/-.

Form 15G:- Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax of tax.

• Form 15G can be submitted by Individual below the age of 65 years and Hindu Undivided family.
• The above points are applicable to the Form 15G as well, except the Form 15H is only for the senior citizen.
• Form 15G should be submitted before the first payment of interest on fixed deposit.

Difference between form 15G and 15H:-

1. Form 15G can be submitted by individual below the Age of 65 Years while form 15H can be submitted by senior citizens i.e. individual's above the age of 65 years.
2. Form 15G can be submitted by Hindu undivided families but form 15H can be submitted only by Individual above the age of 65 years.
3. 15G CAN NOT BE filed by any person whose income from interest on securities/interest other than "interest on securities"/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax.

In nutshell we can say that anybody whose tax on estimated income is not NIL and having income from interest on securities/interest other than "interest on securities"/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax can not file DECLARATION u/s 15G . This is clear from the point 3 & 4 of the of From 15 G.

However, if you are eligible and also fulfill the condition, the payer can not deduct the tax even if it is above 10,000.

Note:- Maximum amount not chargeable to tax for Hindu Undivided family (HUF) and Individual male (below the age of 65 years) for A.Y. 2010-11 is Rs. 160000/- and for Individual female (below the age of 65 years) for A.Y. 2010-11 is Rs. 190000/- .

Senior Citizens who are eligible to file Declaration in Form 15H has no such conditions. They can submit form 15H even if there total Income from interest on securities/interest other than "interest on securities"/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax if tax payable by them is NIL. This is clear from point 4 of the form 15H, which reads as under:-

" 4. that the tax on my estimated total income, including *income/incomes referred to in the Schedule below computed in accordance with the provisions of the Income-tax Act, 1961, for the previous year ending on relevant to the assessment year _____________ will be nil"

http://www.taxguru.in/income-tax/download-know-and-faq-on-form-15g-form-15h.html