With the start of the new financial year, it is time to file Form 15H and Form 15G to avoid the tax deduction at source (TDS) while computing the interest earned during the financial year. These forms help a person avoid TDS in case one does not have to pay income tax at the end of the year. Form 15H has to be filled by an individual who is of the age of 65 years or more and Form 15G has to be submitted by an individual below the age of 65 years and by a Hindu Undivided Family (HUF).
This form should be submitted to all the deductors where you have a deposit. Banks deduct 10% TDS on the interest paid and deposit it to the government and, to get back the money, one will have to file tax returns and, then, wait for the tax refund. So, if you file Form 15G and 15H, banks will not deduct the 10% TDS.
If you have a bank deposit in, say, four various banks or in three branches of the same bank, then you have to file the form in all the branches. Depositors have to submit Form 15H/15G to banks if interest from one branch of a bank exceeds R10,000 in a year. One must submit the form before the first payment of the interest and, in case of delay, the bank may deduct the TDS and issue a TDS certificate at the end of year.
Form 15 H and 15G are self-declaration forms, which have to be submitted by an individual if the total taxable income of the person is going to be less than the permissible limits. So, if an individual is sure that he will not have to pay any tax in a particular year, then he can submit form 15H or 15G to avoid deduction of TDS from his interest income and other kind of incomes where TDS is applicable.
Also, Form 15H has to be filled by those people whose estimated tax for the previous assessment year is nil, that is, when a person did not pay any tax for the previous year because his income wasnít under the taxable limit. Also, an individual needs to submit Form 15H if earns interest on loan, advance, debentures and bonds.
Certain specified entities whose income is unconditionally exempt under Section 10 of the Income Tax Act and who