How to e-file Form 15G & Form 15H on Income Tax: For senior citizens and other individuals who have annual income less than the basic exemption limit or for people who only have an interest income to depend on can face some troubles with TDS or Tax Deducted at Source. During the interim budget in 2019, the basic exemption limit on interest income limit was from Rs. 10,000 to Rs. 40,000. Banks deduct the tax at their source under the provision whenever the bank pays the interest to their customers. Even if your total interest income is below the exemption limit, the bank authorities would not know about that.
The government has hence created Form 15G and Form 15H to address this problem. You can ask the bank not to reduce the TDS on your interest income, which is valid for senior citizens.
People who earn below the exemption limit can submit the form 15G and form 15H at the beginning of every financial year to notify the bank or the people responsible for paying the income and deducting the tax at source during the year. If you submit these two forms, i.e., 15G and 15H, they will not deduct your TDS.
What is Form 15G?
Form 15G applies to the people and HUF below the age of 60 and whose interest revenue is below the basic exemption limit and who don’t have any other tax liability on their annual income. The forms are a form of declaration that states that a person is not liable to pay any form of income tax and TDS according to the Income Tax Act of 1961.
What is Form 15H?
Like Form 15G, Form 15H is also a self-declaration form that applies to a senior citizen or for someone above the age of 60 years. Hence, form 15G is for people below the age of 60 years and form 15H is for people above 60 years. They can file it to request the income tax department not to charge any TDS or request a rebate for the interest income from investments (for example, fixed deposits) if their net yearly income is below the basic exemption limit.
Difference Between Form 15G and Form 15H
A few specific differences exist between Form 15G and Form 15H based on the eligibility criteria, age, limit, etc. They are as follows.
- People below 60 years can submit form 15G, and senior citizens or people above 60 years can submit this form.
- People who are HUF or belong to Hindu undivided families can also submit form 15G. Other taxpayers cannot submit form 15H such as HUF, firms, Pvt, Public companies, AOP, etc. Only senior citizens can submit form 15H.
- People with zero tax liability or annual income less than the basic exemption limit can file 15G. Hence, HUF individuals can also file it. On the other hand, senior citizens who have their interest income exceeding the basic exemption limit can file Form 15H if their annual income is lower than the basic annual income.
What are the Eligibility Criteria for Form 15G and Form 15H?
Form 15G
An Indian resident or HUF with a total annual income below Rs. 2.5 lakh is eligible to submit Form 15G if they are below 60 years. The basic exemption limit is below Rs. 40,000. If these criteria are not met even by the slightest, then they can’t request the non-deduction of TDS. The requirements for Form 15G are as follows.
- People below 60 years are applicable to submit this form.
- If an applicant belongs to a HUF but not to any company or organization, can submit Form 15G.
- The applicant should be an Indian resident.
- If the applicant has a fixed deposit or a recurring deposit, the interest income generated from it must be below the basic taxable amount, i.e., Rs. 40,000.
- The applicant’s total annual taxable income should be below the basic exemption limit.
Form 15H
An applicant between 60 to 80 years is eligible to apply for this form if they have an annual income less than Rs. 3.5 lakhs. Senior citizens above 80 years old can also apply for this form if they have an annual income below Rs. 5 Lakh. If the fundamental annual limits exceed, they cannot request not to deduct their TDS. But, if senior citizens have an interest income above Rs. 40,000, then they can submit form 15H. The criteria for Form 15H are as follows.
- The applicant has to be a senior citizen, i.e., 60 years of age or above.
- They should be an Indian resident.
- Any entity other than a senior citizen such as a HUF, firm, organization, or a person below 60 years cannot fill this form.
- The person’s total annual income should be less than the basic exemption limit.
When can one submit Form 15G or 15H?
Taxpayers can submit Form 15G or 15H at the beginning of the financial year to their banks or any other financial institutions. After they submit the form, the authorities will check them and ensure that no tax deductions occur at the source when they receive the interest for their investments.
What Happens if one Forgets to Submit Form 15G and 15H?
It can so happen that a taxpayer has forgotten to submit their forms on time. In such a case, the banks and financial institutions can deduct the tax on their interest on investments. If it happens, they can ask for a refund at the source, from the Income Tax Department directly.
How to Get a Refund on TDS?
If you want to get a rebate on the TDS, you can file your income tax return form. You cannot submit Form 15G and 15H after their due dates to banks or other financial institutions since they don’t have the authority to refund your TDS.
Financial institutions and banks can also deduct the quarterly TDS instead of the annual one. In such a case, you can submit Form 15G and 15H later so that they don’t remove the TDS for the next quarter. You can claim your refund at the end of the financial year by filing for the Income Tax Return.