All you need to know on FORM 15G/15H

What is Form 15G or 15H?

Form 15G or 15H are self-declaration forms submitted by individuals requesting not to deduct TDS on the income as their income is less than the basic exemption limit.

• Form 15G for – Resident Individual who are less than 60 years old or HUF or trust or any other assessee other than company or firm.
• Form 15H for – Resident Individuals who are 60 years or more than 60 years old.

Example for understanding:

Bank is required to deduct TDS on interest income if the income exceeds the threshold limit for TDS under section 194A.

However, if the total income including the interest income is below the taxable limit then you can submit FORM 15G/15H to the bank.

Non-applicability

These forms are not applicable for:

• Non-Residents
• Companies 
• Firms.

When should you submit Form 15G or 15H?

Form 15G or 15H are valid for one financial year. In order to avoid deduction of TDS, assessee has to submit these forms at the beginning of the financial year itself.

It means that, if you want to avoid deduction of TDS in the current financial year 2022-23, one has to submit these forms on or before 31^st March 2022. 

What are the areas where one can submit Form 15G or 15H?

• TDS on withdrawal of EPF before 5 years – Sec. 192A
• Interest on Bank or Post Office Deposits – Sec. 194
• TDS on Rent – Sec. 194I
• TDS on Insurance Commission – Sec. 194D
• TDS on LIC premium receipts – Sec. 194DA
• TDS on Interest other than Interest on Securities – Sec. 194A

Focus points:

1. Form 15G and 15H are applicable only for ‘residents’, hence a non-resident cannot take the benefit of these forms.
2. FORM 15G shall be submitted only if the total income is less than basic exemption limit and the tax liability should be NIL.
3. FORM 15H shall be submitted only when the Total income is NIL.
4. Form 15G or H to be submitted to respective deductors who is going to deduct TDS. For example, to banks for TDS on interest on deposits, to EPFO portal for TDS on withdrawal of EPF before 5 years, to Insurance companies for TDS on Insurance commission etc..,
5. If you forgot to submit Form 15G or 15H, either you can claim refund by filing income tax return or submit Form 15G or 15H immediately to avoid further deduction of TDS for the remaining financial year.