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Form 15G & Form 15H - How to Fill Form 15G for PF Withdrawal
Form 15G and Form 15H are self-declaration forms provided by the Income Tax Department in India. These forms are used to declare that an individual's income is below the taxable limit, thereby seeking exemption from tax deduction at source (TDS) on certain types of income. It's important to note that both Form 15G and Form 15H are valid for one financial year and need to be filed every year if the individual continues to meet the eligibility criteria.
Submitting these forms does not absolve the individual from paying taxes if their total income exceeds the exemption limit. They are required to file their income tax returns (ITR) and pay taxes accordingly.
Let us discuss in detail what is Form 15G and Form 15H. Who can submit these forms? How to submit them, and the precautions to be taken while filing these forms.
What is Form 15G AND What is Form 15H?
Form 15G and 15H are self-declaration forms to be filed and submitted by individuals to ensure that the banks or financial institutions do not deduct TDS on the interest income earned/accrued in a financial year as their estimated total income will be below the basic exemption limit (ie.Rs.2,50,000 or Rs.3,00,000 or Rs.5,00,000, as applicable) and there is no tax liability in that particular year
In case of non senior citizen interest income also should be below the basic exemption limit to fill the form 15G despite there is no tax liability on Total estimated income.
As per provision of Income tax act, financial institutions and other organizations must deduct TDS while making credit of Interest income to the account of the person and amount exceeds INR 40,000 and INR 50,000 in case of Senior citizens. Normally, people have a myth that interest on fixed deposits is calculated at maturity. Instead, it is calculated, and TDS on interest on the same is deducted periodically which reflects in your Form 26AS.
Who can file Form 15G and Form 15H & When?
Form 15G and Form 15H are valid for one financial year. Ensure you submit these forms every year at the beginning of the financial year. This way you can avoid the TDS deduction by the bank on your interest income.
Forms can be submitted by -
- Any Resident Individual (below 60 years of age)or HUF or trust or any person (other than company or firm)
- Having interest income from FD below the basic exemption limits of Rs 2.5 lakhs and
- No final tax liability
- Having a valid PAN can submit the Form 15G.
- Any resident Individual aged 60 years or above, namely, Resident Senior Citizens
- Having any Interest Income.
- The final tax liability should be NIL
- And Must have a valid PAN
What is the need for Form 15G and Form 15H?
Banks or public financial institutions, while crediting in your account periodic interest, deduct TDS on term deposits interest income.One can avoid deduction of TDS on such interest income if his/her total income is below basic exemption limit and there is no final tax liability in that particular financial year.
Note: Banks and financial institutions deduct no TDS on saving bank accounts.
What are the differences between Form 15G and Form 15H?
You might be tangled between the applicability and effectiveness of both of these forms. Both forms are similar yet distinguished in the following ways
|Form 15G||Form 15H|
|Applicable on||Form 15G can be submitted by any person (other than company or firm)||Form 15H can be submitted only by resident Individuals|
|Age Limit||Applies to residents below 60 years of age||Applies to resident senior citizen ( aged 60 years and above )|
|Interest Income shall fall below basic exemption limit||Interest income shall be below basic exemption limit not chargeable to tax||Interest income may or may not be below basic exemption limit not chargeable to tax|
|Provision under Income Tax Act||As per Section 197A (1) and (1A)||As per Section 197A (1C)|
Examples relating to Form 15G and Form 15H
Lets understand the insights about Form 15G and Form 15H, more transparently with the help of examples below
Example to understand Form 15G
|Mr. Aditya||Mr Shekhar||Mrs. Bhalla|
|Income from Interest on various Fixed deposits||60,000||2,80,000||2,70,000|
|Gross Total Income||2,60,000||3,80,000||3,70,000|
|Deductions under chapter-VI-A like u/s 80C etc||1,20,000||1,50,000||150000|
|Taxable income after Chapter VI -A deductions||1,40,000||2,30,000||220000|
|Basic exemption Limit||2,50,000||2,50,000||3,00,000|
|Net taxable income i.e Taxable Income||NIL||NIL||NIL|
|Applicability of Form 15G||YES||NO||NO|
|Reasons||Form 15G is applicable because
a. Mr Aditya is not a senior citizen
b. Has interest income below taxable limit
c. Final Tax Liability is NIL
|Form 15G is NOT applicable because
Although the tax liability is NIL, interest income exceeds the basic exemption limit.
|Form 15G is NOT applicable because
Mrs Bhalla is a senior citizen and in this case form 15H shall apply
Example to understand Form 15H
|Mr Sharma||Mr Verma||Mrs Chopra|
|Salary/ Pension Income||1,50,000||1,00,000||2,00,000|
|Income from Interest on various Fixed deposits||2,80,000||3,20,000||1,20,000|
|Gross Total Income||4,30,000||4,20,000||3,20,000|
|Deductions under chapter-VI-A like u/s 80C etc||1,50,000||1,50,000||1,50,000|
|Taxable income after Chapter VI -A deductions||2,80,000||2,70,000||1,70,000|
|Basic exemption Limit||3,00,000||3,00,000||2,50,000|
|Net taxable income i.e Taxable Income - Basic Exemption Limit||NIL||NIL||NIL|
|Applicability of Form 15H||YES||YES||NO|
|Reasons||Form 15H is applicable because
a. Mr Verma is a senior citizen
b. Final tax liability is NIL
|Form 15H is applicable because
a. Mr Sharma is a senior citizen
b. Final tax liability is NIL
|Form 15H is NOT applicable because
Mrs Chopra is NOT a senior citizen, and in this case, Form 15G shall apply
Note: For Form 15H, we need not check whether the interest income falls below the threshold limit ( maximum amount not chargeable to tax) or not.
Form 15G or Form 15H can be submitted for which transactions?
Form 15 G is filled by resident individual whose age is below 60 years of age during the year as mentioned in the Form Form 15G is submitted when an individual expects to earn interest income exceeding Rs. 40,000 and, for senior citizens, Rs. 50,000 during that financial year and wants to request exemption from TDS on that income.
Form 15H is submitted solely for senior citizens, i.e., individuals who are at least 60 years of age. Eligible individuals wanting to claim exemption from TDS deductions on FDR interest income. Individual Senior citizens need to submit it every financial year to avoid Tds deduction
How to Fill Form 15G for PF Withdrawal?
To fill Form 15G for PF (Provident Fund) withdrawal in India, follow these steps:
- Obtain the Form: Download Form 15G from the official website of the Income Tax Department of India or obtain a physical copy from the bank or post office.
- Personal Details: Fill in your personal details such as name, address, PAN (Permanent Account Number), and contact information.
- Financial Details: Provide information about your income and investments. Ensure that you meet the eligibility criteria for submitting Form 15G. Typically, individuals below a certain income threshold are eligible to submit this form to avoid TDS (Tax Deducted at Source).
- Previous Assessment Year: Mention the previous year for which the declaration is being made. For example, if you are withdrawing PF in the year 2023-2024, the previous year would be 2023-2024.
- Bank Account Details: Enter your bank account number and the name of the bank where you want the PF withdrawal amount to be credited.
- Declaration: Read the declaration carefully and ensure that the information provided is accurate. Sign and date the form.
- Submitting the Form: Submit the filled Form 15G along with any necessary supporting documents, if required, to the concerned authority. This could be the PF office, your employer, or the bank where you hold your PF account.
Remember to keep a copy of the filled Form 15G for your records.
What are the purposes of submitting Form 15G/15H?
Interest Income - To banks and financial institutions deducting TDS on interest income.
Premature EPF Withdrawals - Any amount withdrawn Rs 50,000 or more before 5 years from the account's opening is liable for TDS. But the compliances can be avoided on furnishing Form 15G/H subject to fulfillment of conditions.
On Rental income - If rental income is more than Rs 2,40,000/- during the year and resultantly tax is deductible, you may file Form 15G or Form 15H as per the applicability.
Insurance Commission - Any insurance agent earning a commission exceeding Rs 15,000 is liable to TDS and can validly file these forms
Income from corporate bonds - TDS is deducted on income from corporate bonds exceeding Rs 5,000. Form 15G or Form 15H can be submitted to the issuer requesting for non-deduction of such TDS amount.
Post office deposits – Digitalised post offices also deduct TDS based on specified conditions. Form 15G or Form 15H can be submitted requesting for non-deduction of any TDS amount applicable.
Dividends - If the dividend income exceeds Rs. 5000, then TDS is required to be deducted.Form-15G/Form-15H can be submitted for non/lower deduction of TDS.
Proceeds of life insurance policy - If such proceeds other than those u/s 10(10D) exceed Rs.1,00,000 in an FY, then the payer is required to deduct TDS @ 5%. The taxpayer can file Form-15G/Form 15H, as applicable, to avoid or for a lower deduction of TDS.
What Precautions need to be taken while filing Form 15G/H?
Some precautions, if taken care of during the complete process, will ease things. An illustrative list of such precautions could be drawn as under
- These forms needed to be filed at the beginning of every year
- Make sure you obtain a copy of the acknowledgment to work as proof in case of dispute with a bank in the future
- PAN shall be quoted so as to avoid TDS deduction at a higher rate of 20%
- If your bank/ PFI does not provide an online facility to submit the Form yet. Do not wait; go and submit it physically as soon as possible.
Can Form 15G /15H be submitted even if your total income exceeds the tax-exemption level?
Form 15G/15H can be submitted even if your income exceeds the basic exemption level. Form-15G can not be submitted if the total interest income for the year exceeds the basic exemption limit. The Income Tax Act states that Form 15G/15H can be issued to those who estimate their total income on which tax is zero and total income comes after considering deductions and allowances.
Steps to submit Form 15G/15H
Form 15G/H can easily be submitted from the comfort of your home or office. Submit your Form 15G/H through Internet Banking or iMobile app and save Tax Deducted at Source (TDS) on term-deposit interest.
ICICI prescribes the following steps for online furnishing of Form 15G/ 15H
- Log in to ICICI Bank Internet Banking
- From the column on top > Payments and Transfer > Select Tax Centre
- Select Form 15G/H > Update
- Fill up necessary details
- Click Submit
- On the Request Confirmation page, recheck details and > click submit
- You can view the list of deposit accounts for which the form is generated and > click on ‘Submit Form’ to finish the process
- Don't forget to download the Acknowledgment
- Save Service Request number for your future reference.
The other option to file Form 15G / H to ICICI bank is through Insta Banking Kiosk:
- At the venue, access using a debit card or Internet Banking details
- Select Form 15G/ 15H
- Choose your account number
- Fill in the required details
- Submit a request
The other option to file Form 15G / H to ICICI bank is through Imobile APP also
- Log in to IMobile app
- Click on ‘Services’
- Click on ‘Accounts Services’
- Select Form 15G/15H
- Fill in the necessary details and submit.
- Login using internet banking credentials
- Select the E-Service tab
- A link can be traced on the left to submit Form 15G/H
- On the right, 15G / H forms will show up
- Fill up the necessary details and click on submit
- Go to 'Accounts' tab > select 'Request' Section > Choose 'Form 15G/H'
- View FD Details
- Click Confirm
- View and save the e-acknowledgment for future reference
How to File Form 15G and 15H Online?
Deductors (i.e., banks) need to file Forms 15G & 15H on the income tax e-filing website. In addition, the deductor should have a valid TAN and register themselves as Tax Deductor & Collector on the income tax e-filing website to start the process.
If the deductor is not registered, they should first register as Tax Deductor & Collector to proceed.
Everyone who files a Form 15G or Form 15H is assigned a Unique Identification Number, or UIN, by the tax deductor. The UIN is required for filing quarterly Statements of Form 15G and Form 15H. Forms 15G and 15H should be maintained for at least seven years.
UIN includes 3 fields - Sequence number, financial year, and TAN of the payer/deductor. The payer should digitize the paper declaration, bearing the same sequence number mentioned in the UIN.
- The payer needs to upload Form 15G & Form 15H received quarterly on the e-filing website
- The payer should quote ‘sequence number’ (Field ‘a’ of UIN) in the quarterly TDS statement against the transaction covered under Form 15G and Form 15H even though no TDS has been deducted
- Visit the income tax e-filing website
- Click on ‘e-file’ and click on ‘Prepare & Submit Online Form (Other than ITR)’
- Prepare the XML zip file by clicking on FORM 15G/FORM 15H (Consolidated)
- To file FORM 15G/15H, you must have a DSC (Digital Signature Certificate)
- Then, generate the signature for the zip file using the utility
- Now, use TAN to log in to incometaxindia.gov.in
- Go to e-File -> Submit Form 15G/15H
- Select the Form Name (Form 15G or Form 15H), Financial Year, Quarter, and Filing Type. Then, click on ‘Validate’
- Browse the ZIP and Signature files and attach them. These files can be generated from the DSC utility
- Download the DSC Management Utility
- Click the Upload button. The success message appears on the screen after a successful upload
What to do if I forget to submit Form 15G/15H?
If you have forgotten to submit Form 15G or Form 15H and the bank has already deducted TDS, here are some steps you can take to rectify the situation:
- File your income tax return: The first step is to file your income tax return. This will allow you to claim a refund of the excess TDS deducted. The income tax department is responsible for refunding the excess TDS, not the banks or deductors. File your ITR in under 4 minutes with Tax2win.
- Submit Form 15G or Form 15H immediately: Even if you missed the deadline, submit the relevant form as soon as possible to prevent further TDS deductions for the remaining financial year. This will help you avoid any additional deductions going forward.
- Provide necessary details: When filing your income tax return, make sure to include all the necessary details, such as the TDS amount deducted by the bank and any other relevant information. This will help the income tax department process your refund efficiently.
- Keep supporting documents: Maintain a record of all supporting documents, including the Form 15G or Form 15H and proof of TDS deductions. These documents will serve as evidence during the income tax assessment process.
- Seek professional assistance if needed: If you are unsure about the filing process or need assistance, consider consulting a tax professional. They can guide you through the necessary steps and ensure compliance with tax regulations. Contact experts at Tax2win who can guide you at each step of tax filing.
How to check filing status?
- Go to My Account –>View Form 15G/15H to check the status of your uploaded file
- The status of the statement will be "Uploaded" once it has been uploaded
- The uploaded file will be processed and validated.
- After validation, the status will be either "Accepted" or "Rejected," which will reflect within 24 hours of the upload.
- Accepted statements will be sent to CPC-TDS to be processed further
- The rejection reason must be available if the status is "Rejected," and the corrected statement must be uploaded
What information is required to be furnished in Form 15G and Form 15H?
Some basic information, like the Name of the taxpayer/individual, address, communication details, estimated income, etc., together with verification and a declaration, shall be signed and submitted. The forms are divided into two parts, as shown below. The first part needs to be filled out by you, and the second one by the authority to whom you submit the respective form. Both of these forms seem to be identical, but there is an important difference between the two. Form 15H has an additional column for Date of Birth to keep track of; apparently you can furnish this form only if you are 60 years of age or older. For more details, see the specimen copies of both forms attached below.
Frequently Asked Questions
Q- Can NRI submit Form 15G/H?
No NRI cannot submit these forms.
Q- What is the Penalty for Wrong Declaration?
Any wrong declarations made shall attract prosecution and fine under section 277 of the Income Tax Act 1961. In case the tax sought to be evaded
- Exceeds Rs 25 lakhs imprisonment term shall not be less than six months but may extend to 7 years and fine.
- In other cases, imprisonment ranges from 3 months to 2 years with a fine.
Q- If I wish to avoid TDS, can I file Form 15G/H?
You can file these forms only if your total tax liability is NIL and all other eligibility conditions as specified above are successfully met.
Q- Are Forms 15G or Form 15H an alternate to ITR?
No, the forms are no alternate to filing your Income Tax Return. Even if you have made the disclosure about your income in these forms, you need to comply with the filing requirements of the IT return separately.
Q- What if i have tax payable after filing form 15G/H?
In case, after filing form 15G/H, your tax liability does not come to zero, then you have to pay the taxes. Moreover, this may amount to a wrong or false declaration and can attract repercussions as mentioned above u/s 277. So be very vigilant before filing these forms.
Q- Do I need to submit these forms to the Income Tax Department?
Not Really, actually, they are submitted to the authority from which you will receive income, and on such income, the respective authority is liable to deduct the TDS. No separate compliances are required to be undertaken on your part.
Q- Does the declaration need to be submitted to every branch of the bank separately?
Yes, it will be better if any income accrues to you that can be tax deductible, then, you need to submit the forms to every branch of the organization from where such income is due. Also, you can ask this from the respective bank/branch.
Q- What if I need to furnish PAN details with Form 15G/H?
Anyone not submitting PAN shall attract TDS @20%.
Q- If the bank has deducted tax in spite of duly filing Form 15G/H, can I demand a refund?
No, even in the case where the bank has deducted your tax after duly filing Form 15G/H, you cannot demand a refund from the bank. The only route open is to file your Income Tax Return and claim refunds.
Q- What is the perfect time for submission of the Form?
It is suggested to file your form at the beginning of the financial year to avoid a situation where the bank has already deducted your taxes.
Q- Shall I obtain acknowledgement for Form 15G/H filed?
It is suggestive to obtain the same. It helps to lessen the cases of wrong declaration claims made by banks. Also, you get a valid proof in hand in case TDS is deducted or wrong deducted.
Q- What if I miss filing Form 15G/H?
There are no harsh consequences to it. You will now be required to file an income tax return to validly claim a TDS refund.
Q- Can HUF submit Form 15G/Form 15H?
Form 15G can be submitted by both. But form 15H can only be submitted by Resident Individual.
Q- What happens if 15g is not submitted?
If Form 15G is not submitted then, the deductor will deduct TDS even if the Income of the deductee is not taxable.
Q- What is the limit for Form 15g?
There is no provision for any limit. It is submitted when the total interest Income of the assessee is below the basic exemption limit.There is zero tax liability.
Q- What is the total income in Form 15g?
Total income as per Form 15G is income estimation on which no tax is required to be paid.
Q- Will my interest income become tax free if I submit Form 15G/Form 15H?
No, interest income on FD/RD is taxable. However if the tax on total income is nil then the assessee can submit form 15G/Form 15H
Q- I submitted Form 15G and Form 15H, but I have taxable income.
No, Only an assessee whose tax liability is nil and subject to other conditions are eligible to submit form 15G / Form 15H