How to Download and Fill Forms 15G and 15H – A Complete Guide

According to rules put forth by the Income Tax Act, 1961, any individual or company making payments, is required to deduct TDS if the payable amount exceeds the set threshold. The amount for TDS deduction is decided according to the rates laid down by the Income Tax Department of India.

An individual earning income from fixed deposit accounts with any financial institution in India is required to submit Form 15G and Form 15H to prevent these institutions from deducting TDS. The deduction is applicable only if the interest earned exceeds the prescribed limit of Rs. 40,000 (previously Rs. 10,000) as mandated.

Why do investors need to fill these forms?

Fixed deposit from financial institutions like Bajaj Finance, make for one of the best schemes to save money in India. Nevertheless, interest earned on them is not exempted from taxation, other than tax saving FD schemes. An earning from these accounts exceeding Rs. 40,000 attracts TDS. For senior citizens, TDS is applicable if the interest payout exceeds Rs. 50,000.

If the income earned on fixed deposits does not exceed the prescribed limit, individuals will have to file their request through Form 15G or 15GH (for senior citizens), to avoid taxation liabilities. Investors should also remember that these forms should be filed at the beginning of a financial year with their respective financial institutions.

To estimate if their interest income exceeds the taxation threshold, individuals can make use of an online FD calculator. It also computes the maturity amount along with the date of maturity.

Conditions to fulfil to fill these forms

To avoid tax liabilities and maximise benefits from the best savings schemes in India, individuals should fill these forms carefully.

For Form number 15G, one must be –

• A HUF, individual assessee or trust, but not any firm or company.
• An Indian resident.
• Below 60 years of age.

Other conditions include –

• The tax calculated on interest earned from fixed deposits and other such schemes should be zero.
• The total interest received on such income should not be more than the basic exemption limit for a given financial year. For FY 2019-20, this limit is set at Rs. 2.5 Lakh.

For Form 15H –

• One must be an Indian resident and an individual.
• If you are above 60 years of age or will be turning 60 in the year of form submission.
• The tax implication on your total income should be nil.

How to download these forms?

You can download the forms from the website of any major financial institution of India, fill up and submit to avoid TDS deduction. These financial institutions also allow online submission of these forms through their official websites.

Nonetheless, it is best to download the forms directly from the official website of the Income Tax Department.

Steps to fill in Form 15G and Form 15H –

To fill in these forms, you have to follow the instructions mentioned below –

1. Enter your name, as mentioned in the income tax records.
2. Enter your 10-digit PAN.
3. Fill in the applicant type you belong to.
4. Provide the current financial year for which you are filling the form.
5. Verify whether you are an Indian resident.
6. Enter your address details.
7. Provide details like your telephone number, email ID, etc.
8. In this step, you need to enter details like whether your income earned from such sources was above the taxable limit in the past six years. If yes, you will need to mention the latest year during which your income earned was above the threshold of taxability.
9. Fill in the income for which TDS cannot be deducted.
10. Enter any income earned from the previous year including sources like stipend, salary, interest income or any other miscellaneous income mentioned earlier.
11. In this step, you will need to fill in the details of Form 15G filed during the previous year.
12. Enter income details of the year for which you are filing your declaration.
13. Sign the form wherever necessary.

Know that Form 15G or 15H cannot be filed if your income is clubbed with your child or a non-income earning spouse.

Further, to avoid this tax implication on FD, you can check for tax saving FD options that allow you to enjoy tax deductions under Section 80C of the Income Tax Act. With these fixed deposits, you can avail a maximum deduction of up to Rs. 1.5 Lakh. Nevertheless, make sure you check the terms put forth under these FD schemes before investing.