How to save TDS by submitting Form 15G and 15H?
Do you have interest income and bank deducts TDS (Tax deducted at source) over it? Well, you can save this tax being deducted subject to certain conditions being satisfied. There is a prescribed from and a format through it can be saved. What is Form 15G? What is Form 15H? Who is eligible to Submit Form 15G to save TDS? How to save TDS by submitting Form 15G and Form 15H Offline? How to save TDS by submitting Form 15G and Form 15H Online?
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In India, the banks have to deduct TDS when the interest income of an individual is more than Rs. 10,000 in a particular financial year. Please note that this includes interest income from all branches of a bank. But, only in the case, when the total taxable income of an individual is below the taxable limit, he or she can submit a form named 15G/15H to the bank in order to not to get TDS deducted. Not only bank, but even companies deduct TDS on interest income exceeding Rs 5,000.
What is Form 15G?
Under sub-sections (1) and 1 (A) of the section 197A of the Income TAX Act, 1961, form 15G is a declaration to be made by an individual (who is below the age of 60) or HUF to receive certain receipts without the deduction of tax. When the total taxable income of an individual is less than Rs.250, 000, his/her tax liability comes to zero. In that case, he can submit Form 15G to request the bank or Company not to deduct TDS.
What is Form 15H?
Under sub-section (1C) of the section 197A of the Income TAX Act, 1961, Form 15H is a declaration to be made by an individual who has attained the age of 60, i.e. he / she comes under the category of a senior citizen or super senior citizen to receive certain receipts without the deduction of tax. When the total taxable income of such an individual is less than Rs. 300,000 (for senior citizen) or Rs. 500,000 (for super senior citizen), his/her tax liability becomes nil. So, he/she can present Form 15H to request the bank to not to deduct TDS.
Who is eligible to Submit Form 15G to save TDS?
The following is the eligibility criteria / requirement for both the forms:
1) For Form 15G, an individual who is below the age of 60 or HUF (Hindu Undivided Family) are eligible to submit form 15G to save TDS. Companies and firms cannot submit this form.
2) For Form 15H, an individual who has attained the age of 60 i.e. he is a senior citizen, then he needs to submit form 15H to save TDS.
3) The individual should be a resident of India.
4) One must have a pan card before applying for these forms.
5) These forms are valid only for one financial year. So, you need to submit these forms every year. If, one wishes, he can submit these forms on quarterly basis also.
6) The form should be submitted before the first date of the interest payment on a fixed deposit.
7) The form is to be submitted to each branch of the bank through which he is receiving interest.
8) The form can be submitted only by those individuals whose tax payable on the total taxable income is zero.
Purposes for which Form 15G or 15H that can be submitted
Apart from saving TDS on interest income, forms 15G and 15H can be submitted for other purposes also.
TDS on EPF withdrawal – If an individual has a balance of EPF account of more than Rs. 50,000 and wishes to withdraw it before completing 5 years of continuous service, he or she may submit these forms.
TDS on income generated from corporate bonds / FDs – If the interest generated from corporate bonds is more than Rs. 5,000, he may present forms 15G and 15H to save TDS.
TDS on rental income – There is a provision of TDS if the rent payable is above Rs, 1.8 lakh. But, if the total tax payable is nil, he/she can submit forms to request the tenant to not to deduct TDS.
TDS on income earned from post office deposits – Digitized post office also deducts TDS and will accept 15G/15H if the eligibility criteria is met.
How to save TDS by submitting Form 15G and Form 15H Offline?
Form 15G or 15H can be obtained online or they can even be procured from the banks. Get the form printed and fill all the required information on it. Now, go to the bank and submit the forms to all the branches of the banks through which interest is payable. If you hold the deposits for more than a year, then you need to submit fresh from the beginning of every financial year.
How to save TDS by submitting Form 15G and Form 15H Online?
Some banks allow these forms to be submitted online also through the bank’s website. To submit the form online, follow the following steps. These steps would minorly change from bank to bank.
1) Go to the website of the respective bank.
2) Log into the internet banking with User ID and password.
3) Search for the option of updating under Form 15G or 15H. It might be under sub –head.
4) Fill in all the necessary details as asked and submit.
5) You can recheck the details on the request confirmation page and submit again.
6) You can view the list of deposit accounts for which the form has been generated and then submit the form to finish the process.
7) You can download the acknowledge receipt if you wish.
Can NRI submit Form 15G or Form 15H to save TDS?
No, NRIs cannot submit Form 15G or Form 15H in order to save TDS. Only resident Indians can submit it.
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What is the process if you forgot to submit Form 15G and 15H and TDS already deducted?
Generally, many taxpayers forget to submit Forms 15G and 15H to the banks on time and as a result, the banks deduct TDS. In such a case, one needs to file an income tax return and seek a refund from there. As the banks have already deposited the deducted TDS to Income Tax department, now they cannot refund it directly. At the time of filing of income tax returns, it can be claimed to refund excess TDS.
Usually, TDS is deducted quarterly. So, if you have forgotten to submit Form 15G or 15H previously, submit it at the earliest to refrain from deducting TDS for the remaining financial year.
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How to save TDS by submitting Form 15G and 15H