All about Form 15G and Form 15H - Save TDS!

Let us try to break down Form 15G and Form 15H in simple terms!

What?

Form 15G or 15H are self-declaration forms that state that one’s income is below the taxable limit and hence exempt from tax.

One can avoid the TDS on incomes like interest and rent by submitting form 15G or 15H to the relevant person or organisation like banks, issuers of corporate bonds, post office or tenant.

Applicability

Form 15G is for resident Indians under the age of 60, HUF or trust. Form 15H is for resident Indians aged 60 years or above.

Why?

Say, you are earning interest income from banks exceeding Rs 10,000 a year. So, banks are obligated to withhold a certain amount of TDS.

But if your total income in the year is less than the taxable amount, you will have to file your tax return and claim a refund of that TDS.

So the TDS was withheld for nothing!

Instead, if the amount is significant (usually for senior citizens), it is better to submit the Form 15H with your bank to avoid withholding of TDS.

How to fill?

Step 1: Fill the forms (online or offline, depending on the deductor)

Step 2: Attach copy of PAN card

Step 3: Submit the forms

It is this easy! The forms are available online on the website of the Income tax Department.

When to submit?

Validity of 15G and 15H is one year only and needs to be submitted every financial year.

What happens if you don't submit?

The only way to seek a refund of excess TDS deducted because of delay or non-submission of form 15G/15H is by filing income tax return.

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