All you want to know about Form 15G / Form 15H : Save TDS on Interest Income

You receive interest on our deposits (fixed and recurring both) in the bank. If the total interest received on all your deposits is more than Rs. 10,000 in a year then bank deducts TDS on that interest. The bank includes deposits held in all its branches to calculate this limit. Tax deducted at source (TDS) is 10% if your PAN card is updated else it is 20% of the interest amount. There is a way by which you can ask bank not to deduct this TDS. If your income is below the taxable limit, you can submit Forms 15G or 15H to the bank requesting them not to deduct any TDS on your interest.

What is Form 15G and Form 15H?

Form 15G and Form 15H are documents that you can submit to make sure TDS is not deducted on your income if you meet the conditions mentioned below. Also, you must have a PAN before applying for these forms. Some banks allow these forms to be submitted online through the bank’s website.

Form 15H is for senior citizens, those who are 60 years or older and Form 15G is for everybody else. These forms are valid for one year and need to submitted again next year if you are eligible. If your income, including all sources is less than the taxable limit then only you can submit these documents. It is advisable to submit them at the starting of financial year to ensure no TDS is deducted by banks, as once deducted it can be refunded only after filling ITR and not through bank.

Who can submit From 15G?

You need to satisfy below conditions to be eligible to submit form 15G.

• Any individual or HUF who is resident Indian (not NRI).
• You should be less than 60 years old.
• Tax liability for the current financial year should be 'NIL'
• The total interest income for the year is less than the minimum exemption limit of that year, (Rs 2,50,000 for financial year 2017-18)

     

Who can submit From 15H?

• Any individual who is resident Indian (not NRI).
• You are 60 year old or more.
• You are going to be 60 years old during the financial year for which you are submitting form.
• Tax liability for the current financial year should be 'NIL'.

	Examples to understand who can submit Form 15G and Form 15H
	Income of	Neha	Vishesh	Ashish	Rahul
	Age	51 years	25 years	64years	71 years
	Salary	Rs. 1,85,000	–	–	–
	Pension	–	–	Rs. 1,00,000	–
	Fixed Deposit interest income	Rs. 85,000	Rs. 2,60,000	Rs. 1,80,000	Rs. 3,30,000
	Total Income before allowing section 80 Deductions	2,60,000	2,60,000	2,80,000	3,30,000
	Deductions under section 80	Rs. 40,000	Rs. 50,000	Rs. 10,000	Rs. 55,000
	Taxable income	Rs. 2,20,000	Rs. 2,10,000	Rs. 2,70,000	Rs. 2,75,000
	Minimum exempt income	Rs. 2,50,000	Rs. 2,50,000	Rs. 3,00,000	Rs. 3,00,000
	Eligible to submit Form 15G	Yes	No	No	No
	Eligible to submit Form 15H	No	No	Yes	Yes
	Explanation	Form 15G can be submitted as age is less than 60 years. Total tax is nil and interest income is less than minimum exempt income.	Form 15G cannot be submitted since interest income is more than minimum exempt income. TDS deducted can be refunded by filling ITR.	Form 15H can be submitted if age is more than 60 years and tax calculated on total income is nil.	Form 15H can be submitted as age is more than 60 years and tax calculated on total income is nil. Form 15H can be submitted although interest income exceeds minimum exemption limit.

Multiple investments with multiple Entities

• If you make any new investment with same bank, you need to submit new form 15G/H as the estimated income for that FY changes.
     
• For example : During the financial year, you open two new fixed deposit accounts but with the same bank, one FD in the first half of the year and the second one in later half of the FY. In this case, you need to first submit relevant Form to your bank, while opening the first FD account. When you open the second FD account then you need to file new Form 15G/H providing particulars of the same with your bank. You also need to mention the total no of forms filled and the aggregate amount for which the forms have been filled. Here is a screenshot of the online form from ICICI bank.

New Investments with the same Entity

• In case, you receive income from multiple entities then you need to submit Forms to all such income providers.
    
• For example : During the financial year, if you open two FD accounts with two Banks then you are required to submit Form 15G/15H to both the banks separately, in order to avoid TDS.

Frequently Asked Questions

S. No	Common Questions	Truth
1	Can HUF submit Form 15G/Form15H?	HUF can submit Form 15G if it meets the conditions but Form 15H is only for individuals.
2	Can NRIs submit Form 15G/Form 15H?	NRIs cannot submit Form 15G or Form 15H, these can only be submitted by resident Indians.
3	Do I need to submit Form 15G/Form15H at all the branches of the bank?	Yes, you must submit at each branch of the bank from which you will receive interest income. Although, TDS is deducted when total interest earned from all branches exceeds Rs 10,000 in total.
4	Does filing Form 15G/Form15H mean my interest income is not taxable?	Form15G/Form15H is only a declaration that no TDS should be deducted on your interest income since tax on your total income is nil. Interest income from fixed deposits, recurring deposits, and corporate bonds is always taxable.
5	Will my interest income become tax free if I submit Form 15G/Form15H?	Interest income from fixed deposits and recurring deposits is taxable. You should submit this form only if tax on your total income is zero and you meet other conditions listed above.
6	I submitted Form 15G and Form 15H but I have taxable income?	You must intimate to your bank that tax on your total income is not zero. The bank will make changes and deduct TDS. You should report the entire interest income in your tax return and pay tax on it as applicable.
7	Do I have to submit this form to the income tax department?	These forms don’t have to be submitted to the income tax department by you. When you submit them to the deductor, he/she will prepare and submit to the income tax department, a detail of all such forms received.
8	Form 15G/H can be used whenever one wants to avoid paying taxes?	No, one should submit these form if the taxable income is nil and the interest from deposits is taxable. Avoiding paying taxes is illegal.
9	Form 15G/H need to be submitted only once?	These forms are valid for that year and need to submitted every year.
10	I was late in submitting these forms and TDS has been deducted by bank. Can bank refund the TDS after submitting forms?	No, TDS deducted by bank or other financial institutions is submitted to income tax department. In case you are late to submit these forms or extra TDS is deducted by institution than you need to file ITR at the end of FY to get the refund from income tax department.