Forms 15G and 15H for Non deduction of TDS

Banks have to deduct TDS when interest income is more than Rs.10,000 in a year. What can you do to make sure bank does not deduct TDS on interest, if your total income is not taxable?

An assesse if his total income is below the taxable limit, you can submit Form 15G and 15H to the bank requesting them not to deduct any TDS on your interest.

1. Meaning of Form 15G and Form 15H?

Form 15G and Form 15H are forms you can submit to make sure TDS is not deducted on your income if you meet the conditions mentioned below. These forms can be submitted online for some banks.

Form 15H is for senior citizens, those who are 60 years or older; while Form 15G is for everybody else.

Form 15G and Form 15H are valid for one financial year. So you have to submit these forms every year once you are eligible. It needs to be submitted in the beginning of the year to avoid deduction of TDS

2. Conditions to submit/file Form 15G

  1. You are an individual or HUF or trust or any other assessee but not a company or a firm and resident indian with less than 60 years old

  2. Tax calculated on your Total Income is nil

  3. The total interest income for the year is less than the basic exemption limit of that year.

3. Conditions to submit/file Form 15H

  1. You are an individual and must be a Resident Indian with 60 years old or will be 60 years old during the year for which you are submitting the form

  2. Tax calculated on your Total Income is nil

4. Forgot to submit Form 15G or Form 15H?

A lot of taxpayers forget to submit Form 15G and Form 15H timely. In such a situation TDS may already be deducted by the bank.


How to get refund of extra TDS deducted –

1. File your income tax return to claim refund of TDS.

2. Submit Form 15G and Form 15H immediately to avoid deduction TDS for the remaining period.

5. Other Purposes for which Form 15G or Form 15H can be submitted

There are few other places where you can submit Form 15G and Form 15H.

  • TDS on EPF withdrawal: TDS is deducted on EPF balances if withdrawn before 5 years of continuous service. If you have less than 5 years of service and want to withdraw your EPF balance of more than Rs 50,000, you can submit Form 15G/Form15H. However, you must fulfil conditions of tax on your total income including EPF balance withdrawn should be nil.

  • TDS on income from corporate bonds: If you hold corporate bonds, TDS is deducted on them if your income from them exceeds Rs 5,000. You can submit Form 15G/Form15H to the issuer requesting non-deduction of TDS.

  • TDS on post office deposits:

  • TDS on Rent: TDS is deducted on rent if total rental payment in a year exceed Rs.1,80,000/-. If tax on your total income is nil, you can submit Form 15G/Form15H to request the tenant to not deduct TDS.

  • TDS on Insurance Commission: TDS is deducted on insurance commission if it exceeds Rs.15,000/- per financial year. But with effect from 01.06.2017 insurance agents  can submit Form 15G/form 15H  for non deduction of TDS if tax on their total income is nil.

6. Obligations for the Deductors

The Income-tax Act requires TDS deductor to allot a UIN (Unique identification number) to all the persons who submit a Form 15G/Form15H. A statement of Form 15G/Form15H must be filed by you on a quarterly basis. This statement has details of Form 15G and Form 15H submitted and incomes on which no TDS was deducted due to submission of these forms. You must retain these forms for 7 years.

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