Today we discuss on the Form 15G and Form 15H, It is a type of Lower deduction /Non deduction of TDS certificate benefits of issuing the form ,procedure of filing and submitting the form.
Meaning of Form 15G and Form 15H
Form 15G and Form 15H is a self-declaration form furnished by the person to another person like banker, Loan & advance parties from which interest income is earned by you (person).Form 15G and 15H are issued only against interest income, 15G and 15H cannot be issued for income other than interest.
Form 15G is submitted by the individual whose age is less than 60 years means the entire individual other than senior & super senior citizens.
Form 15H is submitted by the Senior and Super senior citizens (60 years or more ages).
Who can Issue Form 15G & Form 15H
Form 15G can be issued by the Individual, HUF, Partnership Firm, LLP, Trust but a company cannot issue form 15 G.
Form 15H can be issued only by the Individual (60 years or more age), An HUF, Partnership Firm, LLP, Trust ,company cannot issue form 15 H.
Can NRI furnish Form 15G & Form 15H
No, an NRI cannot furnish Form 15G & Form 15H, only an Indian resident can furnish Form 15G & Form 15H.
Click here to know residential status.
Where and when to submit Form 15G and Form 15H
15G and 15H can be Furnish to the bank or any person from where you are going to earn interest income in financial year.Form 15G & Form 15H can be furnish at any time in a financial year before receiving the interest income. It is advisable to submit the form 15G & form 15H at the starting of financial year.
What are the conditions for issuing the Form 15G and Form 15H
Condition for Form 15G
Any Individual, HUF, Partnership Firm, LLP, Trust whose estimated total income before claiming chapter VIA deduction is below the taxable limit can issue 15G
Condition for Form 15H
Any Individual (60 years or more age) whose estimated total income after claiming chapter VIA deduction is below the taxable limit can issue 15G.
Procedure to fill the Form 15G and Form 15H
No need to go income tax department for collecting the form an assessee can download the form from the below link-Finotex filled the form and submit to the banks/other parties where you are receiving interest income.
After calculating the estimated income a person can file the form 15 and 15H, only PAN number will be required to fill the Form 15G and Form15H.
Benefits of submitting Form 15G & Form 15H
A person can save the TDS deducted on interest income by timely submitting the Form 15G and 15H.If interest income of any person is more than Rs 10,000 from the banks and Rs 5,000 from any other person than TDS will be deducted on interest income.
Amendment in budget 2015 on TDS deducted on interest income
Any person having more than one saving accounts in various branches of same bank than TDS will be deducted by calculating the interest income of all the branches of same bank.
Suppose amit have fixed deposit in a bank, he will receive interest income from the bank. If interest on FD exceeds the Rs. 10000 (Limit for Non deduction of TDS) then bank is require to deduct TDS on FD interest. But Amit know that his total income doesn’t exceeds the basic exemption limit then why bank is paying Advance Tax (TDS) on behalf of him.
To save the Assessee from such circumstances Form 15G/15H are introduced. Now Amit will furnish form 15G/15H to bank & the bank after verifying the details, Submit the form 15G/15H to income tax department.
Failure to submit Form 15G and Form 15H
If you have not submit the 15G and 15H on time to the banks or any person from where you have earned interest income in previous financial year than TDS will be deducted by them.
File the income tax return and claimed the refund of TDS deducted.
Click here to know How to file income tax return.
Requirements of Person collecting the Form 15G & Form 15H
Person who has collected the 15G and 15H has to submit all the forms at Income tax departments.
Time limit of submitting the Form 15G & Form 15H to Income tax departments
The last date of submitting the Form 15G and 15H to income tax department is 7th April 2015 for the financial year 2014-15.
How to Submit Online Form 15G and 15H
You can submit the online form by making a registration on income tax website. Note you have to make a fresh registration for uploading 15G and 15H. Many people are getting confused in uploading it in the TDS website or in the already registered income tax website.
Click on New registration
Click on Tax deductor and collector
Enter Tin number on user name and fill all the details.
After making of successful login, Download the 15G and 15H consolidated file and fill the details and upload it.
15G and 15H applicable on Rental Income
Now 15G and 15H will be applicable on rental income from 01st June 2016 onward. If the rental income of any person is not taxable he can give the form 15G and 15H to the company to save the tax on rental.
For Calculating taxable rental income deduct 30% from the Gross Rent. As 30% deduction is given on income from house property.