CBDT has made filing Form 15G and Form 15H lot simpler by putting it online. Assesse seeking non-deduction of TDS from certain incomes is required to file a self-declaration under Form 15G or Form 15H and submit it to the deductor which is now can be done either in paper form or electronically. Earlier the same was to be submitted only in paper form.
In line with simplifying the procedure of filing for form 15G and Form 15H, both the forms have also been modified reducing the compliances.
New Form 15G and Form 15H Procedure
Under New Form 15G and Form 15H filing procedure, tax payer need to submit online and deductor on receiving the same will assign a Unique Identification Number (UIN) to all self-declarations in accordance with a procedure by CBDT. Both the UIN and self-declarations details will have to be furnished by the deductor in the quarterly TDS statements. In addition, deductor will be required to retain Form 15G and 15H for seven years.
Online submission of form 15G and form 15H shall become effective from 1st October, 2015 and the requirement of submitting physical copy of Form 15G and 15H by the deductor to the income-tax authorities has been dispensed with.
Download New/Revised/Latest Form 15H and Form 15G
|Category of Tax Payer||Income Tax Section||Download Form|
|Individual: Senior Citizen||Sub-section (1C) of section 197A||15H (pdf)|
|Individual: Non-senior Citizen||Sub-sections (1) and (1A) of section 197A||15G (pdf)|
How to Submit Form 15G and Form 15H Online?
The tax payer can generate and submit Form 15G/Form 15H online provided the banker created a link on their individual banks Internet Banking. Below I have given a screenshot on how you can generate and submit form 15G/form 15H online to SBI.
What is Form 15G and Form 15H?
Form 15G and Form 15H are forms which can help a person avoid TDS in case one does not have to pay income tax at the end of the year. Form 15H is for senior citizens and form 15G is for others. The conditions under which Form 15G and 15H may be filed are similar yet with a significant difference. Each taxpayer needs to fully understand the specified conditions and ascertain whether he or she is eligible for filing the relevant form. Filing the form without being eligible to do so is illegal and will invite payment of interest on the tax payable and also a penalty.
Form 15H:- Declaration under sub-section (1C) of section 197A 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.
- Form 15H can be submitted only by Individual above the age of 60 years.
- Estimated tax for the previous assessment year should be nil. That means he did not pay any tax for the previous year because his income is not coming under the taxable limit.
- This form should be submitted to all the deductors to whom you advanced a loan. For example you have deposit Rs.1 lac each in three SBI bank branches than you must submit the Form 15H to each branch.
- Submit this form before the first payment of your interest. It is not mandatory but it will avoid the TDS deduction. In case of the delay, the bank may deduct the TDS and issue TDS certificate at the end of year.
- You need to submit form 15H to banks if interest from one branch of a bank exceeds Rs.10,000/- in a year.
- You need to submit form 15H if interest on loan, advance, debentures, bonds or say Interest income other than interest on bank exceeds Rs.5,000/- in a year.
Form 15G:- Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax of tax.
- Form 15G can be submitted by Individual below the age of 60 years and Hindu Undivided family.
- The above points are applicable to the Form 15G as well, except that the Form 15H is only for the senior citizen.
- Form 15G should be submitted before the first payment of interest on fixed deposit.
Difference between form 15G and 15H
- Form 15G can be submitted by individual below the Age of 60 Years while form 15H can be submitted by senior citizens i.e. individual’s above the age of 60 years.
- Form 15G can be submitted by Hindu undivided families but form 15H can be submitted only by Individual above the age of 60 years.
- The aggregate of the income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA received during the financial year should not exceed the basic exemption slab for Form 15G while no such condition exists for Form 15H.
To further understand these provisions, let’s take the example of Mr. Sanyam, who is 30 years old. Sanyam’s total income is Rs.3,40,000 for the financial year 2014-15 of which Rs.2,60,000 is earned by way of interest from bank deposits. Sanyam also invests Rs.1,00,000 under Section 80C and pays a medical insurance premium of Rs.15,000. Is Sanyam eligible to furnish Form 15G?
This can be ascertained by finding out if he satisfies both the above conditions.
The first condition is that Sanyam’s final tax liability should be nil. Though Sanyam’s gross income is Rs.3,40,000 lakh, on account of his Section 80C and Section 80D deductions of Rs.1,00,000 and Rs.15,000 respectively, the net income falls to Rs 2,25,000 lakh and consequently he is not liable to pay any tax. Therefore, Sanyam satisfies the first condition.
However, we find that since his interest income of Rs.2,60,000 is more than the basic exemption limit of Rs.2,50,000. Sanyam does not satisfy the second condition and hence he is not eligible to furnish Form 15G to the interest paying organization.
On the other hand Form 15H imposes just the first condition, in that, the final tax on the investor’s estimated total income computed as per the provisions of the Income Tax Act should be nil. The second condition imposed by Form 15G is not applicable in the case of Form 15H.
For example, say Mr. Nenawati, 68 years old, has a total income of Rs.3,50,000 for the financial yeat 2014-15, out of which Rs.95,000 is earned from the senior citizens saving scheme and the rest from bank deposits. He invests Rs.50,000 in PPF. Now, is he eligible to furnish Form 15H?
As pointed out earlier, all Mr. Nenawati has to do is to ascertain his final tax liability. It doesn’t matter what amount he receives from which source; this information is irrelevant for Form 15H. We find that Mr. Nenawati’s net income works out to Rs.3,0,000 (Rs.3,50,000 – Rs.50,000). As the basic exemption limit for Mr. Nenawati is also Rs.3,00,000 (on account of him being a senior citizen), his net tax liability is nil and hence he is indeed eligible to submit Form 15H.
Penalty in filling wrong form
Any person making a false statement in the declaration shall be liable to prosecution under section 277 of the Income-tax Act, 1961, and on conviction be punishable:
- in case where tax sought to be evaded exceeds one lakh rupees, with rigorous imprisonment which shall not be less than six months but which may extend up to seven years with fine;
- in any other case, with rigorous imprisonment which shall not be less than three months but which may extend up to three years and with fine.
Myths and Facts about Form 15G and Form 15H
|Anybody who wishes to avoid tax deduction can make use of Form 15G/15H||Only persons with income below taxable limits and Nil Tax liability can only make use of this form.|
|Once declaration is given in Form 15G/Form 15H, there is no need to declare this income in return of Income.||Irrespective of the fact whether the Form is used or not, the respective income should be compulsorily declared in return of income.|
|Once declaration is given in Form 15G/Form 15H, there is no need to pay tax on the same.||As per the provisions, only persons with NIL tax liability only can give these forms. But if there is a tax liability, they have to necessarily pay the requisite tax. On the other hand, by payment of tax they run the risk of giving a wrong declaration. Hence before giving Form 15G/15H, please be doubly careful.|
|Form 15G 15H are submitted only to the banks/Financial Institutions/Payer.||This is partly correct. The person who receives the Form 15G/15H is required to submit one copy of the Form to the Commissioner of Income-tax . Hence the information is passed on the Income-tax department and the Income-tax Department can make further enquiries on the same.|
|Submission of Form 15G/15H once is sufficient.||No. These forms shall be submitted every Financial year at the beginning of the Financial year.|
|It is enough that irrespective of the fact that deposits are held in different branches, a single Form is sufficient.||No. These forms should be submitted to each and every branch where you hold the deposits. For example, if you hold deposits in 3 different branches of State Bank of India, this declaration shall be given for each branch separately.|
|Since my Income is below taxable limits and tax is NIL , I do not have to submit the PAN details with the declaration||No. Every person giving declaration using Form 15G/15H shall compulsorily provide the PAN details along with the declaration irrespective of their Income/Tax status. Otherwise tax will be deducted @ 20% on the Interest.|
|Form 15G/15H can be used for not deducting TDS for all types of payments (viz.,) Contract payments, Professional fees, rent etc.||These forms can be used only for payments in the nature of Interest of Securities, Dividend, and Interest other than Interest on Securities (Bank/Company Deposits), NSS Interest on Units. For other types of payments, these forms cannot be used.|
(References : PIB & Incometaxindia.gov.in)