Form 15G and 15H and help you save Income tax

15G and 15 H, save income tax
15G and 15 H

Form 15G and Form 15H can help save TDS on fixed deposit you have made with your bank and Financial Institutions. 15G and 15H are declaration signed by individuals and HUF that their Gross Total Income, is less then exemption limit.

Main difference between these forms is – form 15G is given by individuals below 60 years old and Form 15H is given by individuals above 60 years old.

Every time Housewife and Senior Citizen make Fixed deposit with bank, their single worry is  that bank will deduct TDS. You can avoid this by submitting form 15G or 15H.

FAQ on 15G and 15H is addressed below:

Why do bank and Financial Institutions deduct TDS?

As per Income tax act, all Banks and Institutions paying interest, are required to deduct TDS from interest given.

Bank are liable to deduct TDS if interest exceeds Rs 10000/- in a year.

For all Institutions other than bank, limit is Rs 5000/-

My total Income is less than basic exemption limit. How can i ensure that Bank’s do not deduct TDS?

You can deposit form 15G or 15H with your bank. This form contains a declaration that your total income is less than basic exemption limit.

What is difference between form 15G and 15H?

Form 15G is individuals less than 60 years old and HUF. Form 15H is applicable to senior citizens.

Form 15G can be furnished even if the aggregate total income is income is more than the  basic exemption limit  but form 15G can only be submitted if the aggregate income is less than the basic exemption limit.

Who is eligible to give form 15G and 15H?

Benefit of providing form 15G and 15H is available to only Resident Individuals and HUF’s.

Can NRI submit form 15G or 15H?

No NRI‘s can not submit form 15G or 15H.

I am a NRI living in USA . I am having some bank FD and iam earning Around 50 k p.a. What can I do to avoid TDS ?

Non Resident Indian (NRI’s ) if your Total income is below taxable limit, then you can apply for certificate to Income tax officer permitting deduction of tax at lower rate.

The income tax department generally issues Exemption Certificate for a period of 1 to 3 years.

Any NRI who has obtained Exemption Certificate need to submit it to the Payer of the income who will follow the certificate and not deduct tax or may deduct at a lower rate as given.

I have submitted form 15G in last financial year , do I need to submit form 15G again?

Yes, Form 15G and 15H are valid for one year only. You have submit new form 15G and 15H for next financial year. It is better to give this form before start of next year.

I submitted form G in June, by this time bank had already deducted TDS.; Please advice what can be done?

Bank will not deduct TDS after the date, when you have submitted form 15G. For TDS already deducted you need to file income tax return and claim Income tax Refund.

I am earning salary of Rs 30,000/- pm and earning Rs 15000/- pa from Bank deposit . Can I Submit Form 15G?

Since your total income exceeds Rs 200,000/- ie basic exemption limit for year 2013-2014,  you are liable to income tax. You should not submit form 15G.

I had already submitted form 15G in starting of the year, and bank did not deducted TDS. But in January I earned Rs 3,00,000/-. What should I do?

You should add the interest Income with total income and calculate your Income tax liability  Accordingly you should deposit tax before filing your Income tax return.

You can calculate Income tax liability using Income tax calculator.

Is it true that there is no TDS on saving and Recurring Deposit?

Yes, There is no TDS on recurring and saving Interest.

I have earned Rs 9, 000/- from bank Fixed Deposit. Do I need to pay income tax on the same?

Interest income on Fixed deposit if less than Rs 10,000/-, is not required to be added in your total income as per section 80TTA.

You can download Form 15 G and  15H from here

Form 15G

Form 15H




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2 responses to “Form 15G and 15H and help you save Income tax”

  1. Abhishek Avatar

    I want to make fd of Rs.50000. If i not submit pan the bank will deduct tds on my fd@20%

    1. Income Tax Buddy Avatar
      Income Tax Buddy

      Bank will deduct TDS only if interest is above Rs 10,000/- in a year. In your case they will not deduct tax at all.