ITR Filing: Why should you submit 15G, 15H for income tax returns?

Banks deduct TDS when your interest income for a financial year crosses Rs 40,000. This interest income limit is Rs 50,000 for senior citizens under section 194A of the Income Tax Act. For tax calculation purposes, your interest incomes from all fixed deposits with different banks get aggregated.

If your total income for the financial year is below the taxable limit, you can submit Form 15G or 15H to your bank. By submitting these forms, you declare that you do not owe any income tax for the current financial year.

How can you avoid TDS payments on fixed deposits?

If your total income is below the taxable limit, you can give a self-declaration by submitting Form 15G and 15H to the bank and request not to deduct TDS on your interest income.

Who needs to submit 15G and 15H forms?

Both Form 15G and Form 15H are self-declaration forms used to avoid TDS. Individuals below the age of 60 should submit Form 15G, while senior citizens need to submit Form 15H.

What are Form 15G and Form 15H?

Form 15G and Form 15H are self-declaration forms that taxpayers submit to their banks, requesting that TDS not be deducted on interest income, as their income is below the basic exemption limit.

Also read: ITR Filing 2024: How to file income tax returns via WhatsApp – Step-by-step guide

Who needs to submit Form 15G?

1. Resident individuals below the age of 60 years, HUFs, trusts, and other assessees (excluding companies or firms).

2. The tax calculated on your total income is ‘Nil’.

3. The total interest income for the year is below the basic exemption limit, which is Rs. 2.5 lakhs (old regime) or Rs. 3 lakhs (new regime) for the financial year 2023-24 (AY 2024-25).

Who should submit 15H?

Resident individual aged 60 years or more i.e. Senior citizen.

1. Tax calculated on your Total Income is ‘Nil’.

Note: The benefits of Form 15G and 15H cannot be claimed by non-residents.

How to download Form 15G

Form 15G, which helps reduce the TDS burden, can be downloaded for free from the websites of all major banks in India. It is also available on the Income Tax Department website.

How to fill Form 15G online

Many banks in India now offer the option to fill out and submit Form 15G online. An active internet banking login is required for this facility. Here’s how to do it:

-Log in to your bank’s internet banking portal using your User ID and Password. Go to the online fixed deposits tab to view your fixed deposit details.

-On the same page, find the option to generate Form 15G. Click on the link to open the fillable form.

-Carefully fill in the details, including your bank branch information (use the branch locator if needed), and submit the form.

Also read: Less than 50% income tax returns filed, will 31 July ITR filing due date be extended?

FAQs on Form 15G and Form 15H:

What is the difference between Form 15G and Form 15H?

Both Form 15G and Form 15H are self-declaration forms. Individuals below 60 years should submit Form 15G, while senior citizens should submit Form 15H to avoid TDS.

Can you download Form 15G and Form 15H from the Income Tax website?

Yes, you can download Form 15G and Form 15H from the Income Tax Department’s website.

Does Form 15G need to be submitted mandatorily for FDs?

You are not required to submit Form 15G for fixed deposits. However, if you earn interest exceeding Rs 40,000 in a financial year, submitting Form 15G can help you save on TDS.

When do you need to submit Form 15G?

If you earn interest exceeding Rs 40,000 in a financial year, you need to submit Form 15G at the beginning of each financial year, typically in April.

Under what provision of Income Tax Act does Form 15G and Form 15H fall?

While Form 15G falls under Section 197A (1) and 1(A) of the Income Tax Act, Form 15H is included under Section 197A(1C).

Do you have to submit Form 15G to every bank branch?

Yes, you need to submit a copy of Form 15G at each bank branch where you receive interest payments. If the total interest from all branches exceeds Rs. 10,000, TDS will be deducted.

Does submitting Form 15G mean my interest income is not subject to taxation?

Form 15G or Form 15H is a declaration that TDS should not be deducted on your interest income because your total income is below the taxable limit. However, interest from corporate bonds, fixed deposits, and recurring deposits is always subject to taxation.

Are NRIs allowed to submit Form 15G or Form 15H?

No, only resident Indians are eligible to submit Form 15G or Form 15H.

How to submit Form 15G online?

First, download Form 15G by logging into your bank’s internet banking portal. Complete the form with all required details and upload it back to the portal.