What is Form 15G and 15H?
Form 15G and Form 15H are tax saving declarations submitted to banks or financial institution. Individuals can submit them to avoid tax deduction at source (TDS) on interest income earned on certain investments.
Form 15G
Form 15G is a declaration under section 197A of the Income Tax Act, 1961. It can be submitted by individuals below 60 years of age and Hindu Undivided Families (HUF). It ensures that no TDS is deducted on interest income earned on fixed deposits, recurring deposits, or other savings instruments. To be eligible to submit Form 15G, the individual's total income for the financial year should not exceed the basic exemption limit.
Form 15H
Form 15H, is a declaration under section 197A(1C) of the Income Tax Act, 1961. It can be submitted by senior citizens (aged 60 years and above) to ensure that no TDS is deducted from interest income earned on fixed deposits, recurring deposits, or other savings instruments. To be eligible to submit Form 15H, the senior citizen's total income for the financial year should not exceed the basic exemption limit.
It is important to note that the declarations made in these forms should be true and correct, and any false declaration can attract penalties under the Income Tax Act.
Difference between Form 15G and form 15H
Form 15G
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Form 15H
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Resident Individual, HUF, trust, or any other assessee but not a company or a firm with an age less than 60 years
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Senior citizens.
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The total interest income subject for the year is less than the basic exemption limit of that year, which is Rs. 3 lakhs for the FY year 2024 - 2025 (AY 2025-2026)
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Please note that non-residents cannot claim benefits of Form 15G and 15H.
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.
If you have invested in Bajaj Finance Fixed Deposit, you can submit forms 15G and 15H to save TDS deduction.
Some of the features of Bajaj Finance FD are:
Interest rate
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up to 8.85% p.a.
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Minimum tenure
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1 year
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Maximum tenure
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5 years
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Deposit amount
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Min- Rs. 15,000
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Application process
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Easy online paperless process
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Online payment options
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Net banking and UPI
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Use the Bajaj Finserv customer portal to save your TDS on Fixed Deposits if eligible.
