Form 15G and Form 15H in Income Tax

income-tax-form-15g-and-form-15h,Income tax form 15G, Income tax form 15H, What is Form 15G, What is Form 15H, Form 15G to Save TDS on Interest Income, Form 15H to Save TDS on Interest Income, Form 15g or Form 15h is specially designed for individuals who wants to save TDS on interest computed on certain investments. Know more about form 15g or form 15h components, purpose of submitting, when to use and who can submit form 15 g or form 15h, how to fill Form 15G, how to fill form 15H




In order to provide relief to certain categories of taxpayers from TDS on certain incomes, the income tax law has enshrined the provisions of filing of Form No. 15G and Form No. 15H to the payer or deductor by the payee so that TDS on income can be saved. In this article, besides the legal provisions related to Form 15G or Form 15H, various procedural matters like how to fill Form 15G or Form 15H is elaborated. Also discussed when and who can furnish Form 15G or Form 15H and the penalty or consequences of wrong filing of Form 15G or Form 15H.


We will begin the discussion on the legal provisions related to Form 15G or Form 15H. 

Section 197A of Income Tax Act, 1961 and Rule 29C of Income Tax Rules, 1962 contain the provisions related to the filing of Form 15G and Form 15H for non-deduction of income tax or TDS on certain incomes. 

Let us first discuss Rule 29C. This rule prescribes the form to be furnished for non-deduction of income tax on certain incomes as below-

Rule 29c(1)- A declaration - 
  • under section 197A(1) or  under section 197A(1A) shall be in Form No.15G and 
  • under section 197A(1C) shall be in Form No.15H.

Section 197A(1) or section 197A(1A) applies to an Individual below 60 years of age. It also applies to non-Individuals.

Section 197A(1C) applies only to Individuals who is a senior citizen.

The provisions of Section 197A are discussed below.


Section 197A: No deduction to be made in certain cases. 


Section 197A(1): No deduction of income tax shall be made for - 

  • Section 194 – TDS on dividend paid to a resident in India if exceeds Rs. 2,500. 
  • Section 194EE – TDS on payments in respect of deposits under National Savings Scheme, etc. if exceeds Rs. 2,500.
in case of -  
  • an Individual, who is resident in India, 
  • if such individual furnishes 
  • to the payer 
  • a declaration in writing in duplicate 
  • in the prescribed form and, 
  • verified in the prescribed manner, 
  • when- 
  • tax on his estimated total income of the previous year in which such income is includible is NIL. 
Please note that the expression used is ‘tax should be nil’ and not the 'Total income should be below the basic exemption limit'So, rebate u/s 87A is impliedly considered.

Section 197 (1A) - No deduction for income tax shall be made for - 


  • Section 192 – TDS on payment from Employees' Provident Funds if exceeds Rs. 30,000.
  • Section 193 – Interest on securities if exceeds Rs. 5,000 except securities held in dematerialized form and listed securities.
  • Section 194A – Interest other than interest on securities if exceeds Rs. 40,000 for bank and PO/Rs. 50,000 for senior citizen, and Rs. 5,000 from others.
  • Section 194D – TDS on Insurance Commission if exceeds Rs. 15,000 
  • Section 194DA – TDS on Life Insurance Policy maturity proceeds if exceeds Rs. 1,00,000 
  • Section 194I – TDS on Rent payment if exceeds Rs. 1,80,000 (now increased to 2,40,000 from FY 2019-20)
  • Section 194K – Not in operation now,  
in case of a person- 
  • not being a company or firm 
  • if such person furnishes a declaration  
  • in writing in duplicate 
  • in the prescribed form and 
  • verified in the prescribed manner. 
  • when- 
  • tax on his estimated total income of the previous year in which such income is includible 
  • is NIL. 
Remember, these provisions state that filing of Form 15G or Form 15H in the previous year in which income is includible, but in practice, it is required to be filed in the year in which such payment is made. Because income-tax is deducted in the year of payment or credit. 

For example, the bank pays interest on Fixed Deposit and if the depositor is following cash basis of accounting then the depositor may include the interest income on maturity of the Fixed Deposit, but the bank will deduct TDS on accrual of income which may differ from the year in which income is offered to tax by the depositor. Suppose, the deposit amount is Rs 5 lakh on which bank pays interest rate @ 8% compounded quarterly for a 5-year period. In the first year, the bank will credit accrued interest amounting to Rs. 41,216. Since the interest amount exceeds the threshold limit of Rs. 40,000 for non-deduction of income tax on interest income as per Interim Budget 2019, the bank will deduct TDS on interest income of Rs. 41,216 @ 10% for Rs. 4,122. thus, the depositor is required to submit Form 15G or Form 15H, if eligible, to the bank in the first year itself.

From the above, it is transpired that nowhere in the law it is written who can submit the form 15G or form 15H. In other words, it is not stated that whether a resident and a non-resident can file Form 15G or Form 15H. Technically speaking, yes both resident and non-resident can file form 15G or 15H.  But non-resident cannot file form 15G or form 15H. Yes, a non-resident cannot file these forms – Form 15G or form 15H. This is because section 197A or provisions for filing of Form 15G or Form15H is applicable to specified sections i.e tax to be deducted under those sections only beyond which Form 15G or Form 15H cannot be filed. All the prescribed TDS sections are applicable to residents only and do not apply to non-residents. Thus, a non-resident cannot file Form 15G or Form 15H. 

Section 197A(1B) - The provisions of section 197A(1) or section 197(1A) shall not apply -
  • when the aggregate of income referred to above sections or
  • the aggregate of the amount of such incomes- 
  • credited or paid or likely to be credited or paid 
  • during the previous year 
  • in which such income is to be included  
  • exceeds the basic exemption limit. 

This provision means if the income for which Form 15G is being furnished such income shall not exceed the basic exemption limit. For example, in case of a bank, if payment of interest during a financial year exceeds the basic exemption limit(Rs. 2,50,000 at present) then Form 15G cannot be filed. 


Section 197A(1C) - Contains filing of declaration in the prescribed form 

For sections mentioned in Section 197A(1)  and section 197(1A) 
  • by an individual resident in India 
  • who is a senior citizen. 
Thus, a non-resident senior citizen is expressly prohibited from filing of Form 15H. In case of filing of Form 15G by a non-resident, it is impliedly prohibited, but for a senior citizen, it is expressly prohibited. 

The condition mentioned in section 197A(1B) is not applicable to a senior citizen filing Form 15H. In other words, Form 15H can be filed even if the aggregate of income referred to above sections exceeds the basic exemption limit which is Rs. 3,00,000 at present for a senior citizen and Rs. 5,00,000 for a very senior citizen but his tax on total income shall be nil.

The above provisions are summarized in the Table-1 given below with the help of an illustration related to payment of interest by a bank for a person who is below 60 years, senior citizens above 60 years and 80 years.


Table-1
Type of Individual
Interest Income
Other Income
Deduction u/s 80C
Total Income
Tax liability
Rebate u/s 87A
Tax Payable
Remarks
Part-A: Below 60 years (Basic Exemption Limit is Rs. 2,50,000)
Case-I
2,50,000
1,50,000
1,50,000
2,50,000
Nil
Nil
Nil
Both the interest income as well as total income does not exceed Rs. 2,50,000 (basic exemption limit) and also tax payable is Nil, hence Form 15G can be filed
Case-II
2,50,000
1,60,000
1,50,000
2,60,000
500
500
Nil
Since Interest income does not exceed basic exemption limit of Rs. 2,50,000, and tax payable on total income is ‘Nil’, Form 15G can be filed. Tax payable is relevant in this case.
Case-III
3,00,000
1,00,000
1,50,000
2,50,000
Nil
Nil
Nil
Since Interest income is more than basic exemption limit of Rs. 2,50,000, Form 15G cannot be filed. Tax payable is irrelevant in this case.
Case-IV
2,50,000
4,50,000
1,50,000
5,50,000
22,500
Nil
22,500
Though Interest income does not exceed basic exemption limit of Rs. 2,50,000, but there is tax liability of Rs. 22,500, hence Form 15G cannot be filed in this case.
Part B: Senior Citizens above 60 years (Basic Exemption Limit is Rs. 3,00,000)
Case-I
3,00,000
1,50,000
1,50,000
3,00,000
Nil
Nil
Nil
Both the interest income as well as total income does not exceed R. 3,00,000 (basic exemption limit) and also tax payable is Nil, hence Form 15H can be filed
Case-II
3,00,000
1,60,000
1,50,000
3,10,000
500
500
Nil
Since Interest income does not exceed basic exemption limit of Rs. 3,00,000, and tax payable on total income is ‘Nil’, Form 15H can be filed. Tax payable is relevant in this case.
Case-III
3,50,000
1,00,000
1,50,000
3,00,000
Nil
Nil
Nil
Even if Interest income is more than basic exemption limit of Rs. 3,00,000, Form 15H can be filed but Tax payable shall be Nil.
Case-IV
3,00,000
4,50,000
1,50,000
6,00,000
20,000
Nil
20,000
Though Interest income does not exceed basic exemption limit of Rs. 3,00,000 but there is tax liability of Rs. 20,000, hence Form 15H cannot be filed in this case.
Part C: Very Senior Citizens above 80 years (Basic Exemption Limit is Rs. 5,00,000)
Case-I
5,00,000
1,50,000
1,50,000
5,00,000
Nil
Nil
Nil
Both the interest income as well as total income does not exceed R. 5,00,000 (basic exemption limit) and also tax payable is Nil, hence Form 15H can be filed
Case-II
5,00,000
1,60,000
1,50,000
5,10,000
20,000
Nil
20,000
Though Interest income does not exceed basic exemption limit of Rs. 5,00,000, but tax payable on total income is Rs. 20,000, Form 15H cannot be filed. Tax payable is relevant in this case.
Case-III
5,50,000
1,00,000
1,50,000
5,00,000
Nil
Nil
Nil
Even if Interest income is more than basic exemption limit of Rs. 5,00,000, Form 15H can be filed but Tax payable shall be Nil.
Case-IV
5,00,000
3,50,000
1,50,000
7,00,000
40,000
Nil
40,000
Though Interest income does not exceed basic exemption limit of Rs. 5,00,000 but there is tax liability of Rs. 40,000, hence Form 15H cannot be filed in this case. This case is similar to Case-II since there is no rebate u/s 87A for Total Income above Rs. 5,00,000

From the above table, which in turn is based on the above mentioned legal provisions, it can be inferred that in case of an Individual below 60 years of age, Form 15G can be filed only if any of the condition is not violated. In other words, Form 15G can be furnished if both the below-mentioned conditions are satisfied by the Individual.

a) The Tax Payable (after rebate) on estimated Total Income (including the income for which Form 15G is being furnished) is Nil or,
b) The income for which Form 15G is being furnished does not exceed the Basic Exemption Limit which currently stands at Rs. 2,50,000

In case of an Individual above 60 years or 80 years of age, Form 15H can be filed only if the below-mentioned condition is not violated. In other words, Form 15H can be furnished if the below-mentioned condition is satisfied by the senior citizen or very senior citizen.

a) The Tax Payable (after rebate) on estimated Total Income (including the income for which Form 15G is being furnished) is Nil.

The condition b) which applies to Form 15G does not apply to Form 15H.


But one factor is common to both Form 15G and Form 15H. If there is tax payable on the total income after rebate, no Form 15G or Form 15H can be furnished. This is because Form 15G or Form 15H is an instrument meant for those who are otherwise not required to pay tax and thus can save TDS.

An individual is a senior citizen whose age is 60 years or more at any time during the previous year and a very senior citizen is a person whose age is 80 years or more at any time during the previous year. 

The basic exemption limit for an Individual for different age groups for FY 2019-20 or AY 2020-21 is given below-

Which Form to choose to avoid TDS

Table-2

Type of Individual
Basic Exemption Limit for FY 2019-20
Which Form to use
Below 60 years
Rs. 2,50,000
Form 15G
Senior Citizens above 60 years
Rs. 3,00,000
Form 15H
Very Senior Citizens above 80 years
Rs. 5,00,000
Form 15H

Though the basic fundamental feature of both the Form 15G and Form 15H is same to avoid deduction of income tax on the specified income but both have many fundamental differences. 

Form 15G can be filed by an Individual, HUF, BOI, Trust, AOP, Club, Society, etc., other than a company or firm. However, Form 15H can be filed only by an Individual who is a resident senior citizen or a resident very senior citizen. 

How to fill income-tax Form 15G?

The prescribed Form 15G is reproduced below-

income-tax-form-15g-and-form-15h

The guidelines to fill each field or column of Form 15G is given below-

How to fill the 'Part-I' section of Form 15G?

1. Name of the assessee (Declarant)- The person furnishing the declaration in Form 15G shall fill his or her name.

2. PAN of the assessee - The person furnishing the declaration shall mention his or her  PAN. Without PAN, no Form 15G can be filed. Note 1 appended to the bottom of the Form 15G also state that the declaration shall be invalid if the declarant fails to furnish his valid PAN.

3. Status - Write whether the declarant is an Individual, HUF, Trust, AoP, etc. A company or firm cannot furnish Form 15G.

4. Previous Year - Mention the Previous Year for which declaration in Form 15G is being furnished. A Previous Year means a Financial Year.

5. Residential status - Write 'Resident' here. A Non-resident cannot file Form 15G.

6. Serial No 6. to 14 of Form 15G relates to postal address, email and phone number.

7. Serial No 15(a) of Form 15G - Whether assessed to tax - Tick 'Yes' if assessed to tax, tick 'No' if not assessed to tax, for any of the assessment year out of last six assessment years. Here, the processing of returns and issue of intimation u/s 143(1) shall not be considered as an assessment for this clause. If 'Yes' is ticked, write the latest assessment year in which assessment was made in clause 15(b).

Serial No 16 of Form 15G and Serial No 17 of Form 15G are the two most important fields. so please be careful in filling the details therein.


8. Serial No 16 of Form 15G - Estimated Income for which this declaration is made - Mention the estimated income for which the declaration is being furnished. For this purpose, the declarant is required to compute the estimated income that the payer will pay to the declarant in the mentioned previous year in serial no. 4 of Form 15G.

For example, if the declaration is made to the bank for interest income on deposits, the declarant shall estimate the interest income on the outstanding deposits with the bank as on the date of filing of Form 15G. In case of further or fresh deposits made with the bank after a declaration in Form 15G is filed, a fresh declaration in Form 15G needs to be furnished.

Remember, if the income amount in this field (Serial No 16 of Form 15G) exceeds the basic exemption limit of Rs. 2,50,000 then Form 15G cannot be filed. Refer Case-III of Part-A of Table-1.

9. Serial No 17 of Form 15G - Estimated Total Income of the Previous Year - In this field, the estimated total income of the declarant for the mentioned previous year in serial no. 4 of Form 15G. This shall include the income for which the declaration in Form 15G is being furnished and mentioned in serial no. 16 of Form 15G. The income under other heads like income from salary, income from house property, other interest income, etc. shall be taken into account.

The declarant must carefully estimate the total income for the previous year. Only write the consolidated figure of Total Income, no head-wise break-up of income is required. The estimated total income shall be derived after taking into consideration the deduction allowable under chapter-VI-A like deduction for payment of life insurance premium, contribution to PPF, Mediclaim insurance premium, contribution to NPS, etc.

In this serial no. 17, if the estimated total income exceeds Rs. 5,00,000 then no Form 15G can be filed even if the amount mentioned in serial no. 16 of Form 15g is less than Rs. 2,50,000. This is because full rebate is allowed if the Total Income does not exceed Rs. 5,00,000. Above total income of Rs. 5,00,000, full tax is payable. Refer Case-IV of Part-A of Table-1.

Also read: No tax on Income up to Rs. 5Lakh as per Interim Budget 2019

10. Serial No 18 of Form 15G - Total no. of Form no. 15G filed earlier and the aggregate amount - In this field, mention the total number of Form 15G already filed for the mentioned previous year in serial no. 4 of Form 15G and for what amount. If this is the first Form 15G being filed, mention 0 (zero) or Nil.

11. Serial No 19 of Form 15G - Details of income - Mention the distinctive number of shares, account number of deposits, life insurance policy number, employee code or UAN, etc.  The 'Nature of Income' and 'Section under which tax is deductible' are given in the Table-3 below.

Table-3
Nature of Income
Section under which tax is deductible
Dividend
Section 194
Deposits under National Savings Scheme
Section 194EE
Payment from Employees' Provident Funds
Section 192
Interest on securities
Section 193
Interest other than interest on securities
Section 194A
Insurance Commission
Section 194D
Life Insurance Policy maturity proceeds
Section 194DA
Rent
Section 194I

The aggregate of the column 'amount of Income' must be the same as the amount mentioned in serial no. 16.

The 'Declaration/Verification' section of Form 15G is reproduced below.



income-tax-form-15g-and-form-15h

In the space marked as 1, write the name as written in column 1 of Part-1 of Form 15G. Delete the expression 'We' if the declarant is an individual.

In the space marked as 2 and 4, write the ending date of the previous year as mentioned in column 4 of the Part-1 of Form 15G. Remember, a previous year always ends on 31st March. For example, if the PY is 2019-20, write 31st March 2020 in the space marked as 2 and 4.

In the space marked as 3, write the relevant assessment year related to the previous year as mentioned in column 4 of the Part-1 of Form 15G. Remember, the assessment year is the next financial year. For example, if the PY is 2019-20 then the assessment year will be 2020-21.

It is important to note that the declaration/verification must be true, correct and complete in all respects because a wrong or false declaration may lead to imprisonment of the declarant. No other pecuniary penalty is prescribed in the income-tax law for furnishing wrong or false declaration in Form 15G. 

Please refer the Note 10 appended below the Part-II of the Form 15G which states as under-
10 Before signing the declaration/verification, the declarant should  satisfy  himself  that  the information furnished in this form  is true, correct and complete in all respects. Any person making  a false statement in the declaration shall be liable to prosecution under section  277 of the 1ncome-tax  Act, 1961 and on conviction be punishable-

   (i) in a case where tax sought to be evaded exceeds twenty-five lakh rupees, with rigorous imprisonment which shall not be less than  six months but which may extend to seven years and with fine;


   (ii) in any other case, with rigorous imprisonment which shall not be less than three months but which may extend to two years and with fine.


The 'Part - II' section of Form 15G is required to be filled by the deductor.

income-tax-form-15g-and-form-15h

This is an acknowledgment with a unique identification number.

There are 12 notes appended below the Part-II of the Form 15G. A declarant shall read the notes once before furnishing the declaration to any person.

Also read:



How to fill income-tax Form 15H?

The prescribed Form 15H is reproduced below-

income-tax-form-15g-and-form-15h


The guidelines to fill each field or column of Form 15H is given below-



How to fill the 'Part-I' section of Form 15H?


1. Name of the assessee (Declarant)- The person furnishing the declaration in Form 15H shall fill his or her name.

2. PAN of the assessee - The person furnishing the declaration shall mention his or her  PAN. Without PAN, no Form 15H can be filed. Note 1 appended to the bottom of Form 15H also state that the declaration shall be invalid if the declarant fails to furnish his valid PAN.

3. Date of Birth- Write the date of birth of the declarant.

4. Previous Year - Mention the Previous Year for which declaration in Form 15H is being furnished. A Previous Year means a Financial Year.

5. Serial No 5. to 13 of Form 15H relates to postal address, email and phone number.

6. Serial No 14(a) of Form 15H - Whether assessed to tax - Tick 'Yes' if assessed to tax, tick 'No' if not assessed to tax, for any of the assessment year out of last six assessment years. Here, the processing of returns and issue of intimation u/s 143(1) shall not be considered as an assessment for this clause. If 'Yes' is ticked, write the latest assessment year in which assessment was made in clause 14(b).

Serial No 16 of Form 15H is the most important field or column. So please be careful in filling the details therein.


7. Serial No 15 of Form 15H - Estimated Income for which this declaration is made - Mention the estimated income for which the declaration is being furnished. For this purpose, the declarant is required to compute the estimated income that the payer will pay to the declarant in the mentioned previous year in serial no. 4 of Form 15H.

For example, if the declaration is made to the bank for interest income on deposits, the declarant shall estimate the interest income on the outstanding deposits with the bank as on the date of filing of Form 15H. In case of further or fresh deposits made with the bank after a declaration in Form 15H is filed, a fresh declaration in Form 15H needs to be furnished.

Remember, in case of a senior citizen or a very senior citizen, if the income amount in this field (Serial No 15 of Form 15H) exceeds the basic exemption limit of Rs. 3,00,000 or Rs. 5,00,000, as the case may be, then Form 15H can be filed. Refer Case-III of Part-B and Part-C of Table-1.

8. Serial No 16 of Form 15H - Estimated Total Income of the Previous Year - In this field, the estimated total income of the declarant for the mentioned previous year in serial no. 4 of Form 15H. This shall include the income for which the declaration in Form 15H is being furnished and mentioned in serial no. 16 of Form 15H. The income under other heads like income from salary, income from house property, other interest income, etc. shall be taken into account.

The declarant must carefully estimate the total income for the previous year. Only write the consolidated figure of Total Income, no head-wise break-up of income is required. The estimated total income shall be derived after taking into consideration the deduction allowable under chapter-VI-A like deduction for payment of life insurance premium, contribution to PPF, Mediclaim insurance premium, contribution to NPS, etc.

In this serial no. 16, if the estimated total income exceeds Rs. 5,00,000 then no Form 15H can be filed even if the amount mentioned in serial no. 15 of Form 15g is less than Rs. 3,00,000 or Rs. 5,00,000 for a senior citizen and a very senior citizen respectively. This is because full rebate is allowed if the Total Income does not exceed Rs. 5,00,000. Above total income of Rs. 5,00,000, full tax is payable. Refer Case-IV of Part-B and Part-C of Table-1.

9. Serial No 17 of Form 15H - Total no. of Form No. 15H filed earlier and the aggregate amount - In this field, mention the total number of Form 15H already filed for the mentioned previous year in serial no. 4 of Form 15H and for what amount. If this is the first Form 15H being filed, mention 0 (zero) or Nil.

10. Serial No 18 of Form 15H - Details of income - Mention the distinctive number of shares, account number of deposits, life insurance policy number, employee code or UAN, etc.  The 'Nature of Income' and 'Section under which tax is deductible' are given in the Table-3 above.
The aggregate of the column 'amount of Income' must be the same as the amount mentioned in serial no. 15.

The 'Declaration/Verification' section of Form 15H is reproduced below.

income-tax-form-15g-and-form-15h


In the space marked as 1, write the name as written in column 1 of Part-1 of Form 15H. 

In the space marked as 2, write the ending date of the previous year as mentioned in column 4 of the Part-1 of Form 15H. Remember, a previous year always ends on 31st March. For example, if the PY is 2019-20, write 31st March 2020 in the space marked as 2.

In the space marked as 3, write the relevant assessment year related to the previous year as mentioned in column 4 of the Part-1 of Form 15H. Remember, the assessment year is the next financial year. For example, if the PY is 2019-20 then the assessment year will be 2020-21.

It is important to note that the declaration/verification must be true, correct and complete in all respects because a wrong or false declaration may lead to imprisonment of the declarant. No other pecuniary penalty is prescribed in the income-tax law for furnishing wrong or false declaration in Form 15H. 

Please refer the Note 8 appended below the Part-II of the Form 15H which states as under-

8 Before signing the declaration/verification, the declarant should  satisfy  himself  that  the information furnished in this form  is true, correct and complete in all respects. Any person making  a false statement in the declaration shall be liable to prosecution under section  277 of the 1ncome-tax  Act, 1961 and on conviction be punishable-
   (i) in a case where tax sought to be evaded exceeds twenty-five lakh rupees, with rigorous 
        imprisonment which shall not be less than  six months but which may extend to seven
        years and with fine;

   (ii) in any other case, with rigorous imprisonment which shall not be less than three months
         but which  may extend to two years and with fine.


The 'Part - II' section of Form 15H is required to be filled by the deductor.

income-tax-form-15g-and-form-15h


This is an acknowledgment with a unique identification number.

There are 10 notes appended below the Part-II of the Form 15H. A declarant shall read the notes once before furnishing the declaration to any person.

Also read:


Let us discuss some of the common aspects of Form 15G and Form 15H in  Frequently Asked Questions (FAQs) format.

What is Form 15G? What is Form 15H?

In simple terms, a Form 15G or a Form 15H is a declaration by the recipient of the income to the payer about the income and tax liability of the recipient of the income.


What is the use of Form 15G? What is the use of Form 15H? 

Form 15G or Form 15H authorizes the deductor or payer not to deduct the tax in respect of payment of income to the recipient of the income.

Who can submit Form 15G? Who can submit Form 15H?

Form 15G can be filed by an Individual, HUF, BOI, Trust, AOP, Club, Society, etc., other than a company or firm. However, Form 15H can be filed only by an Individual who is a resident senior citizen or a resident very senior citizen.

When can I submit Form 15G? When can I submit Form 15H?

Form 15G can be furnished if both the following conditions are satisfied-
a) The Tax Payable (after rebate) on estimated Total Income (including the income for which Form 15G is being furnished) is Nil or,
b) The income for which Form 15G is being furnished does not exceed the Basic Exemption Limit.

Form 15H can be furnished if the following condition is satisfied by the senior citizen or very senior citizen-

a) The Tax Payable (after rebate) on estimated Total Income (including the income for which Form 15G is being furnished) is Nil.

These forms are submitted every financial year and at the beginning of the financial year.


These forms are required to be submitted if the payment exceeds the threshold limit as specified for each of the section or nature of payment as mentioned in Table-3 above. For example, if the interest income paid by a bank does not exceed Rs. 40,000 there is no need to furnish Form 15G or Form 15H since the payment of interest income will not attract TDS.

How to submit Form 15G? How to submit Form 15H?

Form 15G or Form 15H can be submitted in physical mode or online mode. Many banks have introduced the facility of furnishing these forms online through net banking. 

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

A Form 15G can be used by any person other than a company or a firm. Form 15H can be used only by a resident senior citizen.

Why Form 15G is required for withdrawal from PF?

What if no Form 15G or Form 15H is filed and thus income tax is deducted?

If a person does not file Form 15G or Form 15H even though his total income does not exceed the basic exemption limit but the income paid by the payer exceeds the threshold limit, the payer will deduct the TDS. There is no harm or penalty for not filing the Form 15G or Form 15H to the deductor. In fact many people do not furnish Forms to the bank etc., due to complexities involved or laziness.

The person may by filing his personal Income Tax Return or ITR claim the TDS or refund from the government.

Do I need to include the income for which Form 15G or Form 15H is furnished in my total income?

Obviously yes. By filing the Form 15G or Form 15H one may save the TDS on the income but this does not mean the income is free from tax or becomes tax-exempt. One has to duly include the income in computing the total income.

In fact, banks or other deductors are mandatorily required to inform the income amount on which no tax is deducted due to the furnishing of Form 15G or Form 15H to the government and the same is reflected in Form 26AS of the income recipient.

Can I submit the Form 15G or Form 15H if my income exceeds basic exemption limit?

The basic intention of furnishing Form 15G or Form 15H is that one should not suffer TDS on income on which a person will not be liable to pay income tax in a previous year. In the era of no rebate u/s 87A, tax was payable immediately on crossing the basic exemption limit. But after the introduction of rebate u/s 87A, a person may not be liable to pay tax even if the total income exceeds the basic exemption limit.

For example, for FY 2019-20, the basic exemption limit for an Individual assessee is Rs. 2,50,000. But he or she will not be required to pay tax if the total income exceeds Rs. 2,50,000 due to the fact that full rebate is allowed up to a total income of Rs. 5,00,000 for AY 2020-21.

Therefore, one can furnish Form 15G or Form 15H if his or her total income exceeds basic exemption limit but no tax is payable by him or her.

Can I submit the Form 15 G or Form 15H by furnishing a wrong declaration even if my income is more than the basic exemption limit?

One should not file wrong or false declaration in Form 15G or Form 15H. Such a mischevious act may lead to imprisonment of the declarant.

To whom should I furnish the Form 15G or Form 15H?

Form 15G or Form 15h shall be furnished to the person who is responsible to make the payment.

What if due to change in circumstances my estimated income goes up and tax is payable?

One should withdraw the Form 15G or Form 15H iummediately by making an application to the person responsible to make the payment.




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