This will help you avoid any TDS on interest for the financial year.Ĭovid-19 Relaxation: The government had given a relief of one quarter for submitting Form 15G and Form 15H in the Financial Year 2020-21. Provided your expected income in the financial year will not exceed the maximum tax-exempt amount. You should ideally submit your Form 15G or Form 15H at the beginning of the financial year. However, your total taxable income should also remain below this limit. Thus, if your interest income does not exceed Rs 5 lakh you will be eligible for using Form 15H. Similarly, at the age of 81, the maximum exempt income is Rs 5 lakhs. This is because the interest income remains below the maximum exempt income of Rs 3 lakhs for the age. At the age of 62, even though the interest income exceeds Rs 2.5 lakhs you are eligible for using Form 15H. This criteria alone disqualifies you from using Form 15G. At the age of 50, your total interest income exceeds the maximum tax-exempt income limit of Rs 2.5 lakhs for the age. Interest income is less than the basic exemption limit ![]() Total income before Section 80 deductions Here’s an example of Form 15G and Form 15H eligibility in different income and age scenarios: If you have invested in bonds and debentures and the interest from these instruments exceeds Rs 5000 in the financial year.Įxample to Understand who can Submit Form 15G and Form 15H. ![]() The bank deposit where your interest will exceed Rs 10,000 for the financial year.This will help you avoid waiting for ITR processing to get your money back. amount i.e., Rs 3 lakhs and Rs 5 lakhs in the case if you are above 80 years of age.Ĭ) You will need to submit the form at every bank branch you have a deposit.ĭ) Ideally, you should submit the form with the deposits. Important Features of Form 15HĪ) You can submit Form 15H if you have attained the age of 60.ī) Your taxable income for the financial year should be up to the maximum exempt. This declaration allows you to receive full interest on your deposits without any tax deductions. Form 15H is a part of Section 197A, Subsection 1C of the Income Tax Act, 1961. What is Form 15H?įorm 15H is a self-declaration form that can be submitted by senior citizen aged 60 years or above to avoid TDS liability on interest earned from investments in fixed deposits (FD) and recurring deposits (RD). Important features of Form 15G:Ī) You can submit Form 15G as an individual taxpayer whose age is below 60 years, an HUF and a Trust.ī) You should submit Form 15G before the payment of any interest by the bank.Ĭ) You will need to submit the form to all the branches and banks where you have an interest-bearing deposit.ĭ) The eligibility for the Form comes into picture when your taxable income does not lead to a tax liability for the financial year.Į) The facility is only available to resident Indians.į) The total interest income you will receive in the financial year should be less than the minimum taxable income of Rs 2.5 lakhs. ![]() Form 15G allows you to declare your annual income to the bank and request them to stop deducting TDS on your interest income. Form 15G is available under Section 197A of the Income Tax Act of 1961. What is Form 15G?įorm 15G is a declaration that can be filled out by fixed deposit holders (individuals less than 60 years of age and HUFs) to ensure no TDS is deducted from their interest income for the fiscal year. You can submit Forms 15G and 15H to avoid TDS deduction on your interest income in such a case. ![]() But what if your total taxable income in a financial year is less than the maximum tax-exempt limit i.e. The limit is Rs 50,000 for senior citizens. Thus, the bank is supposed to deduct TDS from it every year if your interest exceeds Rs 40,000. The interest you receive from bank accounts and deposits is fully taxable.
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