Form 15G, Form 15H to Save TDS on Interest Income

• Form 15G and Form 15H help save TDS (Tax Deducted at Source) when your total income for the financial year is non-taxable.
• Form 15G is applicable for resident individuals below 60 years, HUFs, and Trusts. On the other hand, Form 15H is applicable in the case of resident individuals above 60 years.
• These Forms are valid only for one financial year, i.e. you need to submit them once every year.

You might be aware that banks deduct TDS (Tax Deducted at Source) when the income from interest earned is beyond the threshold limit. They deposit the TDS with the Income Tax Department on your behalf and credit the net interest amount to your account (gross interest less TDS).But what should you do when your total income in a financial year is non-taxable? Can you request the bank to not deduct TDS?In this case, you should submit Form 15G and Form 15H with your bank. To learn more about these forms, their content, and eligibility, continue reading this blog.

While Form 15G is a self-declaration given by an individual, HUF (Hindu Undivided Family), or Trust, Form 15H is submitted by senior citizens i.e. individuals aged 60 years or more.Through this form, you declare that your annual income is within the tax-exempt limit, which makes sure the bank doesn’t deduct TDS on the annual interest.

You are eligible to submit Form 15G and Form 15H if:

• Your total income is not taxable.
• You are a resident of India.
• If you are below 60 years, then you need to submit Form 15G. In other cases, you must submit Form 15H.
• In the case of HUF or Trust, Form 15G is applicable.

Both Form 15G and Form 15H serve a similar purpose. There are no major differences between them, except the eligible person type i.e. individual (senior/non-senior citizen), HUF, and Trust. Here is a tabulation of the key details:

Both these forms contain two parts and are readily available on the Income Tax website . Let’s broadly look at the sections of each of these forms.

Here is a snapshot of the form for reference purposes. Click here to go to Form 15G on the Income Tax website .some of the key fields of Part 1 of Form 15G include:

• Name of assessee (Declarant)
• PAN of assessee
• Residential status
• Telephone/mobile number
• Email
• Address
• Estimated total income of the previous year
• Aggregate amount of income for which the form is filed
• Date
• Signature of the declarant

In Part 2 of the Form, you need to fill in:

• Name of the person responsible for paying
• Unique identification number
• PAN of the person responsible for paying
• TAN of the person responsible for paying
• Email ID
• Telephone/mobile number
• Amount of income paid
• Date of declaration

Here is a snapshot of the form for reference purposes. Click here to go to Form 15H on the Income Tax website. Some of the key fields of Part 1 of Form 15H include:

• Name of the assessee (declarant)
• PAN/Aadhaar of the assessee
• Address
• Email
• Telephone/mobile number
• Estimated income for which the declaration is made
• Total number of Form 15H filed
• Estimated total income of the previous year
• Date
• Signature of declarant

You need to submit the following details in Part 2 of the form:

• Name of the person responsible for paying
• Unique identification number
• PAN/Aadhaar of the person responsible for paying
• TAN of the person responsible for paying
• Amount of income paid
• Date of declaration

You can save TDS by submitting Form 15G and Form 15H with your bank so that there is no TDS deducted from your annual interest income. However, you are only eligible to submit these forms when your total income is non-taxable.It is advisable to calculate your estimated income for the financial year at the start of the fiscal so that you plan your taxes accordingly. Of the several tax planning tools, ELSS (Equity Linked Savings Schemes) is one of the popular equity mutual fund options that also helps to create a corpus over the long term. Talk to a financial professional and start your mutual fund journey today! Also Read: Tax Deducted at Source (TDS): Meaning, Filing, Return & Rates