Benefits of Form 15G and 15H
Here are some benefits of these forms:
TDS exemption: Form 15G and 15H help taxpayers avoid TDS deductions on their interest income. If a taxpayer's income is below the taxable limit. Submitting these forms to their bank or financial institution will prevent TDS from being deducted from the interest earned on deposits.
Cash flow: By submitting these forms, taxpayers can ensure that their interest income is not reduced by TDS. This can help improve their cash flow and financial planning.
No need to file Income Tax Returns (ITR): If a taxpayer's income is below the taxable limit and they have submitted Form 15G or Form 15H. They may not be required to file an income tax return..
Easy process: Filing Form 15G or 15H is a simple process. All you have to do is fill the form and submitting it to the bank or financial institution.
No need to pay penalty: If a taxpayer fails to submit Form 15G or Form 15H, TDS will be deducted from their interest income. In the case of non-filing, a penalty of 1% per month can be imposed on the taxpayer for non-filing or incorrect information.
Note that not everyone is eligible to submit Form 15G or Form 15H. It is important to check the eligibility criteria before submitting these forms to avoid any penalties or other consequences.
Where to submit forms 15G and 15H?
If you want to submit these forms, here is a step-by-step guide for the same.
Step 1: Fill out the form with your personal details, including your name, PAN, address, and other relevant information.
Step 2: Attach a self-attested copy of your PAN card with the form.
Step 3: Submit the form to your bank or financial institution before the beginning of the financial year (April 1) for which you are claiming exemption from TDS.
It is important to note that the eligibility criteria for submitting Form 15G or 15H are different for both forms. Form 15G is meant for individuals below the age of 60, whereas Form 15H is meant for individuals above the age of 60. Make sure you meet the eligibility criteria before submitting the form.
Forgot to submit Form 15G or Form 15H?
If you forgot to submit Form 15G or Form 15H, you can still avoid TDS deduction on your interest income. Here are two options:
- Submit Form 15G or Form 15H at the earliest: Once you submit the form, the deductor will stop deducting TDS from your interest income.:
- File income tax return: File your income tax return (ITR) and claim a refund of the TDS that has already been deducted. When you file your ITR, you will need to provide the details of the TDS that has been deducted from your interest income. If your total income is less than the exemption limit, you will be eligible for a refund of the TDS.
Where can you submit Form 15G or Form 15H?
Apart from banks, you can submit Form 15G or Form 15H to other financial institutions such as post offices, cooperative banks, and companies that are responsible for deducting TDS from your investment income. In addition, many of these institutions now offer the option to submit these forms online through their websites or mobile apps, which can save you time and hassle.
How to Fill Form 15G Online?
Here are the steps on how to fill Form 15G online:
- Go to the Income Tax Department website and click on the "Forms" tab.
- Select "Form 15G" and click on the "Download" button.
- Save the form on your computer.
- Open the form and fill in all the required details.
- Attach a copy of your PAN card to the form.
- Submit the form online by clicking on the "Submit" button.
Here are the details that you need to fill in Form 15G:
- Name of the declarant: Enter your full name as it appears on your PAN card.
- PAN: Enter your 10-digit PAN number.
- Status: Select your income tax status from the drop-down list.
- Previous year: Enter the financial year for which you are submitting the form.
- Residential status: Select your residential status from the drop-down list.
- Address: Enter your complete address, including your city, state, and PIN code.
- Email ID: Enter your valid email ID.
- Phone number: Enter your valid phone number.
- Estimated income: Enter your estimated income for the financial year.
Once you have filled in all the required details, attach a copy of your PAN card to the form and submit it online.