Forms 15G and 15H to save TDS on Interest Income & PF Withdraws

Forms 15G and 15H to save TDS on Interest Income & PF Withdraws

  

Form No. : 15G

Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax

Form 15G or 15H is submitted to request income provider for not deducting tax or TDS for prescribed income. These forms help claim receipts without any tax deduction &  used only for payments in the nature of Interest of Securities, Dividend, Interest other than Interest on Securities (Bank/Company Deposits) , PF withdrawals.

There is a deduction of TDS on EPF if an individual withdraws their EPF before completion of 5 years of continuous service.  No TDS for PF withdrawals of up to Rs 50,000  and wishes to withdraw it before completion of 5 years of continuous service, he/she may submit a Form 15G/15H.. TDS is deducted at the maximum marginal rate of 34.608 percent if a member fails to submit PAN or Form 15G or 15 . However, in case of Form 15G or 15H is submitted by the member, then TDS is not deducted. These forms are to declare that their income would not be taxable after receiving payment of their PF accumulations from retirement fund body EPFO.

Eligibility Criteria of Forms 15G and 15H.

You are an Individual or a person (other than a company or a firm) &  residential status must be Indian Resident, age should not be more than 60 years

Tax liability calculated on the total taxable income is zero & total interest income for the financial year is less than the basic exemption limit.

The main difference between Forms 15G and 15H is that Form 15H is submitted by senior citizens (above 60 years of age), Form 15G is submitted by claimants below the age of 60 years.

Download Forms 15G and 15H from  HERE

Instructions to fill in Form 15G

Form 15G has two sections. The first part is for the individual who wants to claim no-deduction of TDS on certain incomes. Here is how you need to fill in the first part of Form 15G

1] Name of Assesse (Declarant) :

Fill in your name same as it is mentioned on your PAN Card.

2] PAN :

Fill in your Permanent Account Number (PAN) . Valid PAN card is mandatory.

3] Status :

Declaration in Form 15G can be furnished by an INDIVIDUAL or a person Hence, mention the correct status.

4] Previous Year (P.Y.) : (for which declaration is being made)

The previous year has to be the financial year for which you are claiming non-deduction of TDS.

5] Residential Status :

Mention your residential status such as RESIDENT individual.

6] Address  : Flat / Door / Block No. / Road / Street / Lane : / 

Area / Locality : Town / City / District /State : / PIN:

Mention your communication address clear & correctly along with PIN code.

13] Email :

Provide valid email ID. for further communications.

14] Telephone / Mobile No :

Provide contact number for further communications.

15] (a) Whether assessed to tax under the          Yes             No

             Income-Tax Act, 1961

Tick mark ‘’yes’’ bracket if you were assessed to tax under the provisions of Income Tax Act, 1961 for any of the previous assessment years. You should also mention the latest assessment year for which your returns were assessed.

16] Estimate income for which this declaration is made

Estimated income for which you are making declaration needs to be clearly mentioned.

17] Estimated total income of the P.Y. in which income 

mentioned in column 16 to be included

Total estimated income for the financial year (which includes all the income).

18] Details of Form No. 15G other then this form filed during

 the previous year if any

If you have already filed Form 15G anytime during the financial year, then the details of the previous declaration along with the aggregate amount of income need to be mentioned in the present declaration.

19] Details of income for which the declaration is filed
Sr.No	Identification number of relevant investment / account, etc.	Nature of Income	Section under which Tax is deductible	Amount of Income

Last part of section 1 talks about the investment details for which you are filing a declaration. You need to furnish the investment account number (term deposit/ life insurance policy number/ employee code etc)

After filling the entire field, fill below form of Declaration / Verification and fill Date & Place

After filling the entire field Declaration form, re-check all the details to ensure there is no error & sign on above Signature of the Declarant.

A second part of the form pertains to deductor. Details in the second section are to be filled by the deductor who is going to deposit the tax deducted at source to the government. In case you forget to submit Form 15G in time and your deductor has deducted tax, here’s what you can do :

Immediately submit Form 15G to avoid further deductions for the year: Normally, banks deduct the TDS at the quarter end when proportionate interest is calculated on a fixed deposit. It’s better to submit the Form 15G as soon as possible to avoid any more deductions for the year.