When you earn an income from a savings account or any other source, the bank may take a small part of it as tax. This is called TDS (Tax Deducted at Source). But if your total income in a year is not high enough to be taxed, you can stop the bank from deducting this money by using Form 15G or Form 15H. These are called tax-declaration forms and can help you save that tax amount. Let’s understand more about what these forms mean, who can use them, how to fill them and how they help.
Understanding Tax Deducted at Source (TDS)
TDS is the amount the bank usually deducts when you earn interest from your bank account, FD or any other investment. It is then sent to the government as tax. But if your yearly income is below the taxable limit (₹12 lakh as per the revised tax slabs under the New Tax Regime), you do not have to pay any tax.
Also Read : Best Ways to save Income TaxWhat is Form 15G?
Form 15G is a tax declaration form you can give to the bank if you are below 60 years of age and your income is less than the taxable limit. It tells the bank not to deduct any tax from your interest earnings. For example, if you are 25 years old and your total income is ₹2 lakh for the year, you can submit Form 15G to avoid TDS as your income does not fall under the taxable limit.
What is Form 15H?
Form 15H is similar to Form 15G but is for senior citizens. This means people who are 60 years or older can use this form. This form prevents TDS deductions if the total annual income is below ₹3,00,000 for senior citizens and ₹5,00,000 for super senior citizens (aged 80 years and above).
Key Differences Between Form 15G and Form 15H
| Aspect | Form 15G | Form 15H |
|---|---|---|
| Who Can Use It | People below 60 years, HUFs and Trusts | People 60 years or older |
| Total Income | Must be below the taxable limit | Can be above the limit if no tax is payable |
| Tax Condition | No tax should be payable | No tax should be payable |
Eligibility Criteria for Submitting Forms 15G and 15H
Form 15G eligibility criteria:
- You must be less than 60 years old.
- Your total income, including interest, should be less than the taxable limit.
- You must be an Indian resident.
- You must have a PAN card.
- No tax should be payable for the year.
Form 15H eligibility criteria:
- You must be 60 years or older.
- You must be an Indian resident.
- Even if your income is more than the basic limit, after deductions, no tax should be payable.
- You need to have a valid PAN card.
Step-by-Step Guide to Filling Form 15G and Form 15H
Now, let’s understand how to fill Form 15G and how to fill Form 15H. Though the steps are very similar, here’s the guide you can refer to:
Filling it on paper:
Step 1: Get the required form (Form 15G or Form 15H) from a valid source like the income tax department’s website or banks.
Step 2: Fill in the required details, including the PAN number.
Step 3: Provide the supporting documents.
Step 4: Submit the signed form to the bank or the financial institution.
Step 5: Keep a copy for your records.
Filling it out online:
Step 1: Log in to your bank’s website or app.
Step 2: Go to the TDS section.
Step 3: Select Form 15G or Form 15H.
Step 4: Fill in the required details and submit.
Step 5: Get your confirmation slip.
Benefits of Submitting Form 15G and Form 15H
Here’s how these forms can help you:
- You get the full interest amount as there is no tax deduction.
- Easy to fill and submit.
- You can save time as you do not need to wait for a tax refund later.
- You have the convenience of doing it online from home.
Also Read : New Income Tax Slabs
Conclusion
Make sure you use Form 15G and Form 15H to avoid losing money to TDS when your income is not taxable. If your income is low or you are a senior citizen with no tax due, simply fill out and submit these forms to your bank. Ensure you always give the correct details for a smooth process.
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