Recently EPFO started to deduct TDS and when I wrote a post on this then I got many queries related to filling Form 15G and Form 15H. Hence, thought write a detailed video tutorial guidance about how to fill forms 15G and Form 15H. Many of us simply fill either of these two forms to avoid TDS from Bank Deposits. But who can actually submit the Form 15G or Form 15H?
Note-Effective from 1st October, 2015, CBDT launched the new version of Form 15G and Form 15H. Also, the new facility of submitting it online is started. You can go through below post to know more about the recent changes.
What is Tax Deducted at Source or TDS?
When you have any taxable income, then instead of paying the tax at the end, the tax will be deducted at a flat rate where it is arising. For example, in case of salaried the employer deducts the TDS or your Bank may deduct TDS on your Fixed Deposit earnings. This TDS rate varies from one type of income to another.
In case of Bank FDs or RDs, if your total interest income from all FDs or RDs is greater than Rs.10,000 in a financial year (across all branches of a bank) then bank deduct TDS at the rate of 10%. If you do not provide a PAN number, then this TDS will be 20%.
In case of Bank FDs where you opted for payment of principal and interest at the end of maturity only, if the above said threshold limit crossed then Banks deduct TDS on yearly (even though you did not receive the FD amount).
Usually, you receive a consolidated TDS certificate in form 16. Whoever deducted the TDS will issue the certificate in the month of April (immediately the next start of a financial year). In case of joint account FDs, tax liability will be on the first holder.
What is Form 15G and Form 15H?
Usually people submit Form 15G and Form 15H to AVOID tax. Also, usually bank officials request you to submit either of these forms to avoid TDS. However, there are conditions to submit either of these forms.
1) You have to submit either Form 15G or Form 15H when your total income does not exceed the basic exemption limit (in case of Financial Year 2015-16 the basic exemption limit for an individual is Rs.2,50,000, for an individual whose age is 60 years or more but less than 80 years then it is Rs.3,00,000 and for an individual whose age is more than 80 years then it is Rs.5,00,000). You can check the latest tax slabs in my earlier post “Budget 2015-New Tax Slabs and Rates for FY 2015-16 (AY 2016-17)“.
2) If your estimated tax liability for the current financial year is NIL.
However, no one bothers about these basic rules and try to avoid TDS as much as possible. Remember, avoiding TDS does not mean avoiding tax. At any cost, you have to pay tax on such taxable income.
Form 15G and Form 15H are nothing but self-declaration forms. Therefore, if a person is sure that he is not liable for any tax for that particular financial year, then he may submit Form 15G or Form 15H to the authorities who may deduct TDS.
Note that both Form 15G or Form 15H are not meant for NRIs, companies or firms. But only for an individual/HUF/AOP. You have to submit the form at the beginning of a financial year only. Otherwise, it will not be useful for you as TDS may already deducted.
Form 15G-This form can be submitted by an individual/HUF/AOP whose age is less than 60 years of age. You can download the Form 15G HERE.
Form 15H-This form can be submitted by an individual/HUF/AOP whose age is more than 60 years of age. You can download the Form 15H HERE.
How to fill Form 15G or Form 15H?
Effective from 1st October, 2015 CBDT launched the new version of Form 15G and From 15H. You can read all those updates in my blog post “Video Tutor-How to fill new Form 15G & Form 15H?“. Along with that, I also created a video tutor about how to fill the newly launched Form 15G and Form 15H.
There is no difference between two forms. Only the difference is of age condition attached to these forms for submission. Hence, in this below video I will show you how to fill the Form 15G.
Note these important points about TDS or Form 15G and Form 15H–
- Avoiding TDS does not mean avoiding TAX.
- You have to fill the IT return in the same year when the TDS deducted.
- Filing Form 15G or Form 15H does not mean that you no need to file IT returns.
- If your bank deducted TDS then you have to file IT return and get back such tax deducted (if your tax liability is NIL in that particular year).
- Always attach your PAN copy along with Form 15G or Form 15H.
- You can view online all such TDS done in the portal called TRACES.
Hope this information will be useful for you in filling Form 15G or Form 15H.