Difference Between Form 15G and 15H

As per the Income Tax Act of 1961, the interest earned from your fixed deposit (FD) is liable to be taxed. If you earn over ₹40,000 as interest from FD investment, Tax Deducted at Source (TDS) will apply. For senior citizens, this limit is ₹50,000 per financial year.  Form 15G and Form 15H are forms you can submit to avoid TDS on your interest income if your total income is below the taxable limit. 

You can use Form 15G if you are under 60 years, while Form 15H is meant for those aged 60 and above.

There are some eligibility criteria that you need to meet to fill in Form 15G. These include:

• You must have an Indian nationality

• You are part of a Hindu Undivided Family (HUF)

• You must be an individual as Form 15G is not meant for any firm or company

• Your age must be less than 60 years

• The tax evaluated on your net salary must be zero

• You must have a total earning less than the basic exemption threshold of that specific year in which you fill in the form

Submitting Form 15H ensures no TDS is deducted if the total income of individuals of 60 years of age or above falls below the taxable limit. You need to meet the following criteria to fill in Form 15H:

• You should be an Indian citizen

• Your age must be at least 60 years

• Your tax evaluation should be zero

While both forms are self-declaration forms and come with similar perks, there are certain factors that set them apart. Here are Forms 15G and 15H’s differences:

To understand these forms better, you can consider the following examples:

• Form 15G

• Form 15H

You can submit these forms to save on taxes in various instances when TDS is applicable. Some of them include:

• Income from Corporate Bonds

Use Form 15G or Form 15H when your corporate bond income exceeds ₹5,000. 

• Post Office Deposits

You can submit Form 15G or Form 15H at digitised post offices. Ensure you meet the applicable conditions to avoid TDS deductions.

• Rent

If your annual rent exceeds ₹2.4 Lakhs, submit Form 15G or Form 15H.

• Dividends

Use Form 15G or Form 15H when your dividend income exceeds ₹5,000. 

• EPF Withdrawal

Submit Form 15G or Form 15H if you withdraw your EPF balance of more than ₹50,000 before completing 5 years of continuous service. This applies only if your total income tax is nil.

• LIC Maturity Proceeds

If your LIC maturity proceeds exceed ₹1 Lakh and are taxable, submit Form 15G or Form 15H. 

• Insurance Commission

Insurance agents can submit Form 15G or Form 15H if their commission exceeds ₹15,000 per financial year. 

Before you can submit these forms, you need to understand the various parts that each form consists of:

To submit these forms digitally, follow these simple steps:

1. Enter your name and PAN and specify your status - individual, HUF, or trust

2. Provide details about the previous financial year for which you are submitting the declaration 

3. Enter details about your residential status, full address and contact information

4. In Option A, select 'Yes' if your total taxable income exceeds the maximum exemption limit and provide the year

5. Enter the estimated income for the current financial year for which the declaration is being filed

6. Provide details of other forms that you filed in the previous year

7. Enter information about the income, tax sections, etc., for which you have submitted the declaration

If you want a copy of this document saved on your device, follow these steps to download these forms in PDF format:

1. Go to the official website of income tax

2. Go to Downloads and select ‘Income Tax Forms’

3. You will find Form 15G or 15H there

4. Tap on the PDF icon and download the form you need

5. Do not forget to generate photocopies of your form for personal record-keeping

The last date to submit Form 15G is within the first quarter of any financial year. Do not wait for the last date to submit Form 15G or Form 15H. Try to submit it as early as possible. 

After logging into the income tax website, you can follow these steps to check your filing status:

1. Access the ‘My Account’ section on the income tax e-filing website

2. Select ‘View Form 15G/15H’ to check the filing status of your forms

3. Initially, the status of your uploaded form will show as ‘Uploaded’

4. The uploaded file will undergo a processing phase, followed by validation to ensure all details are accurate

5. After the validation process, the status will change to either ‘Accepted’ or ‘Rejected’ within 24 hours 

6. If your statement is accepted, it will be forwarded to CPC-TDS for further processing

7. In the event of a rejection, the reason will be provided, enabling you to correct the statement and re-upload it

When considering submitting these forms, keep the following points in mind:

• If the submission of the form is deemed fraudulent, you may face penalties under section 277 of the Income Tax Act, 1961

• Non-resident Indians (NRIs) are not eligible to submit Form 15G or 15H

• As a resident senior citizen, you can claim TDS exemption by filing Form 15H even if your taxable income exceeds the exemption limit, provided your total tax liability under section 87A is zero

• Avoid filing Form 15G if your total taxable income exceeds the basic exemption limit

• Remember, this declaration form does not replace your income tax return; you still need to file your income tax return separately

Forgetting to submit Form 15G or Form 15H is a common oversight, especially since it occurs annually. If your bank has deducted TDS due to this, here are steps you can take:

• Submit Form 15G or 15H Promptly

You can submit Form 15G or Form 15H right away to prevent any additional TDS deductions in the future. You have a grace period of 90 days to submit these forms for the new fiscal year. If you missed the deadline, ensure you submit the form within the next quarter.

• File Your Income Tax Returns

Filing your income tax returns can help you assess your taxable income and potentially claim tax refunds. The TDS deducted last year will appear in Form 26AS, which includes the TDS amount withheld by your bank and the interest you earned. 

This deducted TDS amount must be reconciled with your total tax liability. If you qualify for Form 15G or 15H, the deducted TDS can either be offset against your total tax liability or refunded to you.

You can submit Form 15H and Form 15G at several locations aside from banks. Consider these options:

• Employer’s offices

• Online income tax portal

• Post offices

• Income tax department offices

• Insurance companies