Form 15G and Form 15H: Complete Guide to Tax Exemption Forms

Introduction

Are you tired of seeing tax deductions on your interest income? Understanding Form 15G and Form 15H can save you from unnecessary Tax Deducted at Source (TDS). These important exemption declarations allow eligible individuals to receive their full interest income without TDS deductions. 

In this blog, we’ll walk through everything you need to know – their purpose, eligibility criteria, key differences, submission process, and more. By the end, you’ll have a clear understanding of how these forms can benefit your financial planning.

What are Form 15G and Form 15H?

Form 15G and Form 15H are self-declaration forms prescribed by the Income Tax Department of India under section 197A of the Income Tax Act. These forms allow eligible individuals to receive interest income without TDS deductions from banks, post offices, and other financial institutions.

When you submit these forms, the employer won’t deduct TDS from interest earned on your fixed deposits, recurring deposits, or other interest-bearing investments. This means you receive your full interest amount instead of getting it after TDS deduction.

The primary purpose of is to provide relief to individuals whose annual income falls below the taxable limit. Instead of having tax deducted at source and then claiming a refund later, these forms prevent TDS deduction at the initial stage itself.

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Differences Between Form 15G and Form 15H Explained

While both forms serve the same purpose of preventing TDS deduction, there are significant differences between them. Understanding the difference is crucial to determine which form applies to your situation.

Form 15G

1. Eligibility: For individuals (other than senior citizens) and Hindu Undivided Family (HUFs) whose tax liability for the financial year is nil
2. Age Requirement: Below 60 years
3. Income Threshold: Total income should be less than the basic exemption limit (currently ₹2.5 lakh)
4. Additional Condition: The interest income for the year should not exceed the basic exemption limit

Form 15H

1. Eligibility: Exclusively for senior citizens whose tax liability for the financial year is nil
2. Age Requirement: 60 years or above
3. Income Threshold: No specific threshold, but final tax liability should be nil
4. Purpose: Specifically designed as Form 15H for older person taxpayers.

When Should You Submit Form 15G and Form 15H?

Timing is crucial when submitting the Forms. Here are the guidelines:

1. Beginning of Financial Year: Submit at the start of each financial year (April)
2. New Investments: Submit when making a new fixed deposit or investment
3. Validity Period: Valid only for one financial year
4. Annual Renewal: Must be renewed every financial year
5. Multiple Submissions: Separate forms for each bank/institution where you have investments

Remember that Form 15G and Form 15H need to be submitted before the interest is credited to your account. If TDS is already deducted, you’ll need to claim a refund when filing your income tax return. 

Here’s a guide to ensure you complete without a hitch.

A Step-by-Step Guide to Filing Form 15G and Form 15H 

Filling correctly is essential to ensure your declaration is accepted. Let’s walk through the process step by step:

Form 15G (For non-senior citizens)

1. Part I: Fill in your details like name, PAN, address, and assessment year
2. Part II: Provide details of the income and declaration regarding your tax liability

Form 15H (For senior citizens)

1. Personal Information: Complete name, PAN, date of birth, and address
2. Investment Details: Provide information about your investments and expected interest income
3. Declaration: Confirm that your tax liability for the year is nil

Once you’re familiar with the latest format, downloading is quick and easy. Here’s how you can get them in just a few clicks.

How to Download Form 15G and Form 15H in Just a Few Clicks

You have several options to download Form 15G and Form 15H:

1. Income Tax Department Website: The forms are available on the government website; however, if you’re looking for a more streamlined experience, consider employing RegisterKaro.
2. Bank Websites: Most bank websites provide downloadable PDF versions.
3. Net Banking: Log in to your net banking account to download or submit online.
4. Mobile Banking Apps: Many banks now offer the facility to submit these forms through their apps.

Whether you prefer physical forms or digital submission, having access to the latest format ensures your declaration meets all current requirements. 

The Essential Rules and Regulations for Form 15G and Form 15H 

To ensure proper compliance with tax regulations, you should be aware of the rules:

1. False Declaration Penalty: Providing incorrect information can result in penalties under Section 277 of the Income Tax Act
2. Verification Process: Banks may verify your information with your PAN details
3. Rejection Scenarios: Your form may be rejected if:
   • Your income exceeds the basic exemption limit
   • You have taxable income in previous assessments
   • The form is incomplete or contains incorrect information
4. Mandatory PAN Requirement: PAN is mandatory for submitting these forms
5. Submission Deadline: No specific deadline, but must be submitted before interest credit

Financial institutions are required to report all submissions to the Income Tax Department, so accuracy is crucial to avoid future complications.

Special Cases: Using Form 15G and Form 15H for PF Withdrawals

A lesser-known application of these forms is for Provident Fund withdrawals. You can submit the 15G and 15H form for PF withdrawal to prevent TDS deduction on your PF withdrawals if:

1. Your PF withdrawal amount exceeds ₹50,000
2. You’ve maintained your PF account for less than 5 years
3. Your total income is below the taxable limit

This is particularly useful for individuals changing jobs or needing to access their PF savings without falling into pitfalls.

Common Pitfalls to Avoid When Submitting 

When dealing with Form 15G and Form 15H, be careful to avoid these common errors:

1. Submitting the Wrong Form: Using Form 15G instead of 15H or vice versa
2. Incorrect Income Declaration: Underestimating your total annual income
3. Missing Renewal: Forgetting to renew the forms each financial year
4. Incomplete Information: Leaving mandatory fields blank
5. Multiple Bank Oversight: Submitting to one bank but forgetting others

By understanding the proper rules and requirements, you can avoid these pitfalls and ensure smooth processing of your declaration. 

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How to Submit Form 15G and Form 15H Digitally for Convenience

With financial institutions embracing digital transformation, the process of submitting Form 15G and Form 15H has become much more convenient:

1. Net Banking: Most banks allow submission through their net banking portals
2. Mobile Banking: Submit through your banking app
3. Email Submission: Some institutions accept scanned copies via email
4. Digital Signature: Forms can be digitally signed for electronic submission
5. Auto-renewal: Some platforms offer auto-renewal reminders

This digital evolution makes complying with the rules much more accessible and user-friendly.

Conclusion

Form 15G and Form 15H are powerful tools for eligible individuals to prevent unnecessary TDS deductions on their income. By understanding the difference, eligibility criteria, and submission process, you can optimize your tax planning and improve your cash flow.

Remember to access at the beginning of each financial year, submit them to institutions, and ensure that the information provided is accurate. Form 15H for senior citizen provisions offers additional flexibility with less stringent requirements.

Frequently Asked Questions (FAQs) 

1. Can I submit Form 15G if my income exceeds the basic exemption limit? 

No, if your total income exceeds the basic exemption limit, you cannot submit Form 15G, as you will have tax liability.

2. Do I need to submit Form 15H separately for each bank account? 

Yes, you need to submit separate Form 15H declarations for each bank or financial institution where you have interest-earning investments.

3. What happens if I fail to submit Form 15G or Form 15H? 

The bank will deduct TDS as per applicable rates, and you’ll need to claim a refund when filing your income tax return.

4. Can Form 15G or Form 15H be submitted online? 

Yes, most banks and financial institutions now provide online submission facilities through net banking or mobile apps.

5. Is Aadhaar mandatory for Form 15G and Form 15H submission? 

While PAN is mandatory, Aadhaar requirements may vary depending on the financial institution’s policies and current regulations.