The Income Tax department has been modified the Form No. 15G & 15G as per amended notification No. 11/2013 [F.NO.142/31/2012-SO(TPL)]/SO 410(E) Dated 19.02.13 for the assessment year 2013-14. The New Form No. 15G & 15H is applicable to all Taxpayee who do not want TDS Deduction on their Income or other under section 203 of the Income-tax Act, 1961.
- No TDS to be deducted by bank in case of –
Interest on saving bank account.
Recurring deposits.
- Bank deducts TDS on interest payment of fixed deposit u/s 194 A.
(As per sec 194 A for payment of interest other than on securities, bank deducts 10% TDS, if payment exceed Rs. 10000 p.a.)
- Form no. 15G and 15H are to be submitted every year with bank. These forms are valid only for the financial year in which you have furnished these forms. If you want to apply for nil TDS in the new financial year, then you will have to resubmit these forms. Form 15H or 15G are meant to prevent TDS and not to avoid tax or file your tax return. You may be required to file your tax return if your total income before the deductions is above the basic tax exemption limit.
- Form 15G/15H is a self declaration form, which is provided by a person resident in India (not being a company or firm) to their deductor that the tax on his estimated total income for the previous year will be NIL.
- Assessee should submit these forms before the end of financial year or before first payment of interest whichever is earlier.
- All banks and financial institutions will deduct TDS if payment of interest on fixed deposits exceeds Rs. 10000 during the financial year.
- Bank will issue TDS certificate also called form 16A which mentions the details of TDS payments with the government.
- The limit of Rs. 10000 is applicable for each branch of a bank. So each branch of the bank will see whether the interest of the whole year on all the FDs exceeds the threshold of 10000.
- If a person is making FD in different branches of same bank then these forms should be deposited at each and every branch where the deposit has been made. For example, if Mr. Ashish has made deposits at three different branches of SBI, then he has to submit the Forms at each branch separately.
- In case of FDs made for longer duration where interest on the FD to be paid on maturity, bank will deduct TDS on interest accrued for the year.
- Please ensure to mention Permanent Account Number (PAN) on the forms while submitting form No. 15G or 15H. In case, taxpayer fails to provide PAN to the deductor, the tax would be deductible @ 20%.
- These Forms are to be submitted in duplicate, one of which is forwarded to the IT department.
- These Forms can only be used for payments like dividends, interest on securities, interest other than interest on securities, national saving schemes, interest on units. For other types of payments (like brokerage, rent etc), these forms cannot be used.
- A bank can track you using unique customer ID. If the combined interest in all the branches of bank exceeds the threshold limit of Rs. 10000, TDS will be deducted if you have not filed form 15G/15H. Therefore, it is best to provide the form then to risk TDS. They can then reclaim the amount by filing their tax returns. The second option is to split fixed deposit across several banks and branches so that TDS exemption limit is not breached.
FORM NO. 15G
is used to Declaration under section 197A(1) and section 197A(1A) of
the Income-tax Act, 1961 to be made by an individual or a person (not
being a company or firm claiming certain receipts without deduction of
tax.
FORM NO. 15H
is applicable to Declaration under section 197A(1C) of the Income-tax
Act, 1961 to be made by an individual who is of the age of sixty years
or more claiming certain receipts without deduction of tax.
Difference between Form 15G and Form 15 H
Download Form 15G
Difference between Form 15G and Form 15 H
Form 15G
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Form 15H
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Submitted by individual below the age of 60 years.
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Submitted by senior citizens(60 or above 60 year)
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Can be submitted by HUF also.
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By individuals only (senior citizens).
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Two conditions:
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One condition:
Can
be submitted by the senior citizen even though the total interest
amount from the payer may exceed Rs. 3.0 Lacs (i.e., the limit of basic
exemption limit).
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Can be submitted by residents only.
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Can be submitted by residents only.
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Download Form 15G
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