Form 15G and Form 15H are self-declaration forms provided by the Income Tax Department of India. These forms are used by individuals to declare that they are eligible for non-deduction or lower deduction of tax at source (TDS) on specific incomes. Here are detailed notes on Form 15G and Form 15H:
Form 15G: Form 15G is a declaration form applicable to individuals below the age of 60 years. To be eligible to submit Form 15G, the individual must meet the following criteria:
- The individual must be a resident of India for income tax purposes.
- The total estimated income for the financial year, including interest on Fixed Deposits, should be below the taxable threshold.
Form 15H: Form 15H is a similar declaration form, but it is applicable to senior citizens who are 60 years of age or above. To submit Form 15H, the individual must meet the following criteria:
- The individual must be a resident of India for income tax purposes.
- The total estimated income for the financial year, including interest on Fixed Deposits, should be below the taxable threshold.
Purpose of Forms 15G and 15H: The primary purpose of these forms is to avoid unnecessary deduction of TDS on incomes where the individual’s total income falls below the taxable limit. If an individual is eligible and submits either Form 15G or Form 15H to the payer (bank or financial institution), the payer will not deduct TDS on the interest income from Fixed Deposits.
Eligible Incomes: Forms 15G and 15H are applicable for eligible incomes such as interest income from Fixed Deposits, Recurring Deposits, and certain other sources. These forms cannot be used for salaries or other regular sources of income on which TDS is mandatory.
Submission of Forms: The individual must submit either Form 15G or Form 15H to the payer (bank or financial institution) where the Fixed Deposit is held. It is essential to submit the form at the beginning of the financial year or before the first interest payment is due to ensure that TDS is not deducted from the interest income.
Conditions for Submission:
- Form 15G can be submitted if the individual’s estimated total income for the financial year is below the basic exemption limit.
- Form 15H can be submitted if the individual’s estimated total income for the financial year is below the basic exemption limit and the individual is 60 years or above.
Consequences of False Declaration: Submitting false or incorrect information in Form 15G or 15H is a serious offense and may attract penalties under the Income Tax Act. The individual must ensure that they meet the eligibility criteria before submitting the form.
In summary, Forms 15G and 15H are self-declaration forms that individuals can submit to avoid TDS deduction on certain incomes if they meet the eligibility criteria. By submitting these forms, individuals can ensure that they receive the full interest income from Fixed Deposits without any TDS deduction, provided they satisfy the conditions prescribed by the Income Tax Department.