Form 15G and Form 15H for Saving TDS on Fixed Deposits in Banks

A common mode of Investment amongst a majority of people is maintaining deposits with various banks in India. TDS is applicable and deducted by banks to Fixed Deposits and Recurring Deposits.   Forms 15G/H, which needs to be submitted in order to ensure banks don’t deduct the TDS from the interest earned by the individual. This guide will explain two important Forms – form 15G /H and the eligibility to submit, their purpose and points to note while submission.

What is Form 15G/H?

We all know that banks credit the Interest Income to the individuals towards their deposits.   Form 15G and Form 15H are self-declaration forms that we need to submit every financial year, as per eligibility to the banks, requesting not to deduct Tax Deducted at Source (TDS) on the Interest Income.  The depositor should have a PAN card to submit these forms.

Difference between Form 15g and 15h

Form 15H is for senior citizens who are 60 years or older and Form 15G is for those individuals who are less than 60 years of age.

Why 15G Form is required?

TDS is applicable on interest paid or payable at a later stage when the amount is above Rs. 5000 or Rs. 10,000 yearly. So, the banks deduct the TDS annually and its vice versa when the interest income is less than the prescribed limit. The banks are required to deduct the TDS on Fixed Deposits or Recurring Deposits which exceed Rs. 10,000/- in total from all the branches of the bank, for the respective financial year . The interest is calculated on 31st March for the period and tax is deducted if the interest is more than Rs 10,000.

Along with the interest income there are other situations where an individual is expected to submit these forms like TDS on EPF withdrawal, TDS on Post-office deposits, TDS on Rent, TDS on Insurance Commission etc.

When to Submit Form 15G/H to bank?

A resident individual or any person including HUF can submit Form 15G , provided the two conditions are satisfied as below.

1. The tax liability on your total income should be NIL
2. The total aggregate of your income for which the Form 15G is submitted should not be above the basic exemption of Rs. 2.50 Lakhs.

An NRI or a partnership firm is not eligible to submit Form 15G/H.

A senior citizen can submit Form 15H and should satisfy the condition that the liability of tax on his/her total income must be NIL. Below is the table for reference:

Use our Income Tax Calculator to calculate your tax liability

Things to Consider while submitting Form 15 G/H

• You can submit a copy of valid PAN card along with a cover Letter to the bank in the beginning of the Financial Year and get the Acknowledgement for the same
• You must submit the details of Forms 15G/H submitted to other banks as the total interest across the bank accounts can be verified by the Banker
• It is strictly advised not to declare any false information as it may lead to severe consequences as per law
• Submit the forms as per eligibility by furnishing correct details to avail the benefit. Few banks also provide the facility of online submission like HDFC, ICICI bank etc.
• Always take one copy as received if you are submitting the application manually to bank as a proof of submission.

Here are the steps below to submit the Form 15G and Form 15H online to the Income Tax Department from your HDFC net banking account, for example.

How to Fill Form 15G?

**Note: The Fields in Form 15H, used for senior citizens, is similar to the fields in Form 15G.

Here is the process to fill the Form 15G/H in the relevant fields as below:

1. Mention the Name as per PAN Card
2. Write the PAN Number
3. Mention the status whether its Individual / Hindu Undivided Family (HUF) etc
4. Here the year for which you don’t want the TDS to be deducted has to be entered. The Financial Year to which the income belongs to is called Previous Year. If an individual received income during FY 2016-17 which gets assessed in the Assessment Year 2018-19. Then the Previous Year to be entered will be 2016-17.
5. Residential Status must be entered here as these forms are applicable to only the Residents of India.
6. Fields 6 to 12 must be the filled with Address details
7. Fields 13 & 14 will be the Email id along with Telephone Number
8. Field 15 (a) Mention Yes if assessed to tax under the provisions of Income-tax Act, 1961 for any of the assessment year out of six assessment years preceding the year in which the declaration is filed.
   15(b) Mention the last Assessment Year in which you have filed the return
9. Mention the income you would receive against which TDS shouldn’t be deducted like interest on Fixed Deposit in the field 16
10. Field 17 consists of the estimated total income of Previous Year that includes amount from Field 16.
11. Field 18 has details of any other information apart from the current Form 15G during Previous Year if any, along with the amount of those filed declarations
12. Field 19 has the details of income towards the declaration that is filed along with the account details of any term deposits/Recurring Deposit, National Saving Scheme Certificates, Life Insurance Policy details etc.
13. Complete the Declaration/Verification form along with your signature within the given space provided in the form.

Part II needs to be filled by the person to whom you are submitting the declaration like the bank, post-office etc.

Attach the Pan Card copy along with the declaration. In case the TDS is already deducted, then you can still file your Income Tax Return and claim for the TDS refund depending on your tax liability.

Submitting Form 15G using Netbanking

• Step 1: Login to your HDFC bank account through the link:  https://netbanking.hdfcbank.com/netbanking/

• Step 2: Click on “Request” option after logging in to the account

• Step 3: Select the option “Form 15G/H and the screen is displayed as shown below

• Step 4: You can select the required option to “Submit Form 15G/H online” or “Download Blank Form”
• Step: 5: Click on “Continue” to proceed further and submit the Form15G/H

Most Frequently Asked Questions

Q. What is the time limit to submit Form 15G/H?
A. It’s advisable to submit in the beginning of the Financial Year or when any deposit is created at bank.

Q. Is the Interest Income not taxable upon submission of Form 15G/H?
A. Since the tax liability on total income is NIL, submission of these forms only means that no TDS should be deducted on the interest income. And However, the interest income is always taxable.

Q. What is required to submit Form 15G/H?
A. As per Bank records the valid PAN number along with Date of Birth must be updated by the individual.

Q. What Can You do if TDS is Deducted by Bank?

A. There is no option to get the TDS refunded back to you by the Bank or even if it gets deducted despite submitting the relevant forms. The only way to claim for refund is at the time of filing the Income Tax Return.

So, it’s always recommended to verify and submit the Form 15G/H as per the eligibility with valid PAN and Date of Birth details to the banks. For assistance with TDS refunds and/or the best tax saving and planning options available to you, enlist the aid of the tax experts at H&R Block India.