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1. Form 15H and 15G - Difference Between Form 15H/G
If your interest income is less than the basic exemption limit then Form 15H & Form 15G can benefit you. You can fill up these forms to ensure that the payer does not deduct the TDS (tax at the source) from your income. You can submit these form 15G & Form 15H to the deductor of TDS only if you meet the specific conditions. The best scenario to use From 15G/15H is the Bank. Banks generally deduct TDS at the rate of 10% if your interest income exceeds Rs.10,000 (RS. 50,000 for senior citizens). In case your total income is less than the basic exemption limit & not taxable then you can submit Form 15G/15H to banks so that they do not deduct TDS from your interest income. The From 15G is for non-seniors (below the age of 60). Form 15H is for senior citizens who are 60 years older or more than this. This form must be filed at the beginning of every financial year.
2. What is form 15G?
Form 15G is a declaration form under sections 197A (1) & 197A (1A) submitted by the taxpayers in case their interest income is not taxable or income is below the minimum exemption limit. The Income Tax Act 1961 provides relief on tax liability in certain circumstances. If the taxpayer has a taxable income of below Rs. 2,50,000, then they are not liable to pay income tax. Let’s have an example- suppose you have made a deposit in the fixed deposit and you are earning a specific amount of interest income. In this case, banks can deduct tax at the source before crediting your interest income to your account. However, You can avoid this TDS if your total income is below the basic exemption limit of Rs. 2,50,000. To avoid TDS on your interest income, You will be required to furnish Form 15G even if the amount goes beyond Rs. 40,000. Furnishing Form 15G can help you to get full interest income as banks would not deduct any TDS. However, an individual’s age should not be more than 60 years. Now you know about Form 15G, so let’s know about Form 15H for a clear difference between 15G and 15H.
3. What is form 15H?
Form 15H is almost similar to Form 15G. Individuals can claim their income earned from interest without any deduction by furnishing Form 15H. However, the condition to meet this form is quite different from Form 15G. To be able to file Form 15H, you must be at least 60 years old or more than this. Note - It is worth noting that these forms are only validated for the period of one year. Thus, you must be able to furnish Form 15H every financial year to receive a TDS deduction on the interest income earned from fixed deposits. Now you have a clear understanding of the definition of both the forms mentioned above, So let’s put the light on the difference between these forms, Read on!
4. Conditions for filing form 15G & form 15H
The requirements for filing Form 15H and Form 15H are almost similar except for the one factor of age. Below are the conditions for filing Form 15G/15H- Your age must be less than 60 years to file form 15G Your age must be less than 60 years to file form 15H You must be a Resident of India or HUF, Tax calculated on your total income should be zero, You total interest income must be less than the basic exemption limit for that specific year.
Frequently Asked Questions
Are Hindu Undivided Family eligible to file Form 15G/15H?
Yes. If the Hindu undivided family (HUF) fulfills all the requirements mentioned above, then they are eligible to submit Form 15G/15H to the deductors.
Does filing Form 15G/H make my interest income tax-free?
No. Furnishing Form 15G/15H does not confirm that your income would be tax-free. It just indicates that no TDS deduction will be made from your income by the deductor.
What is the time duration to submit Form 15G/15H?
Form 15G/15H can be submitted at the beginning of every financial year. Therefore, the deductor shall not deduct TDS while filing quarterly TDS returns during the year.
Who can file Form 15G?
Any resident Individual or Hindi Undivided Family who is not a senior citizen are eligible to file Form 15G only if their total income is less than Rs. 2,50,000.
Who can file Form 15H?
Any Indian Resident Individual being a senior citizen can file Form 15H only if their income is less than Rs. 2,50,000 and the age is 60 years or above.
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