Everything You Need To Know About Form 15G and Form 15H

With fixed interest rate and attractive returns, Fixed Deposit is one of the most preferred investment options for most investors. However, the interest you earn from Fixed Deposit is fully taxable. As per the recent Budget, TDS threshold has been raised to Rs. 40,000 from Rs. 10,000 for banks and post office deposits, while for NBFCs it continues to be Rs. 5000

What is Form 15G?

Form 15G can be used to prevent TDS deduction on income, if the following conditions are met:

  • You are an individual (and Resident Indian) or HUF or trust or any other assessee but not a company or a firm
  • You are less than 60 years old
  • The tax computed on your total income is nil
  • Your total interest income for the year is less than the basic exemption limit of that year, which is Rs. 2.5 lakh for financial year 2020-21 (AY 2021-22)

What is Form 15H?

For those who are above 60 years of age, Form 15H can be furnished to prevent deduction of TDS if the following conditions are met:

  • You must be an individual and an Indian Resident
  • You should be at least 60 years old
  • The tax computed on your total income is nil

Here’s a quick summary of the exemption limit for different individuals:

Customer Type Details Form Type Basic exemption limit
Individual Indian Resident below 60 years of age Form 15G Rs. 2,50,000
Senior Citizen Indian Resident who is above 60 years of age, but less than 80 years of age Form 15H RRs. 5,00,000
Super Senior Citizen Indian Resident who is above 80 years of age Form 15H Rs. 5,00,000
Non-Individuals Trust, Association, Club, HUF and Society Form 15G Rs. 2,50,000

How to fill Form 15G or Form 15H?

Once you’ve met the required conditions for furnishing Forms 15G and 15H, you can start filling them. Here’s are the steps you need to take:

  • Fill in the different fields in Form 15G and Form 15H
  • Attach your PAN copy with the declaration
  • Submit the Forms to your financier.

For those looking to avoid long queues and arduous processes, you can consider filing these forms online.

Both Forms 15G and 15H are valid for 1 year, and should be submitted to your financier at the start of the year. You must ensure that your financier does not deduct the tax, before you furnish the forms, because the bank may not be able to refund it. To get your money back, you may need to file your ITR and claim a refund of your TDS amount.

How to download Form 15G and Form 15H PDF?

To download Form 15G or Form 15H, here’s what you need to do:

  • Visit the Income Tax Department website
  • Under ‘Frequently used Forms’, look for Form 15G or Form 15H, depending on your requirement.
  • Click on the PDF icon next to it and download the form. Once you’ve downloaded the form, print 3 copies of it. Sign and submit the printed documents to your financier.