Prosecution for wrong submission of Form No. 15G or 15H


15G or 15H

Query 1]

During the FY 2015-16 my expected tax liability is arriving at Rs. 7,000/-. My income of Rs 5 Lacs includes Pension & Interest from Fixed deposit. While Bank will deduct TDS of Rs. 25,000/- during FY 2015-16.My query is whether am I eligible to submit Form 15H to the Bank for the whole or part of the assessment year? I am senior citizen & my interest income is Rs. 2,50,000/-. Please guide. []


Form No. 15G or 15H are very frequently used declaration form which is routinely submitted to avoid the deduction of tax at source (TDS) in respect of interest payment. However, taxpayer should know that any false or wrong declaration could make them liable for prosecution under section 277 of the Income Tax Act-1961.

Depending upon the quantum of default, it could attract imprisonment ranging from 3 months to 7 Years. With the increasing electronic usage of data base, the information of taxpayer submitting Form No. 15G or 15H is by & large digitally available with the income tax department. Further, the taxpayer may please note that Part A1 in form 26AS shows the interest on FD’s against which tax is not deducted due to submission of Form No. 15G or 15H. Taxpayer can be penalized even if the declaration form is filed unintentionally as Ignorance of Law is no excuse. Before replying to the specific points in your query, let other readers know who & when Form No. 15G/15H can be submitted.

Who can submit form No. 15G?

A person who is resident in India can submit form No. 15G. NRI cannot submit this form. To be eligible to furnish Form 15G, the non-senior citizen needs to fulfill the following two conditions:

  1. The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil; and
  2. The aggregate amount of interest income etc. received during the financial year should not exceed the basic exemption limit for that relevant year.

If both these conditions are satisfied, Form 15G may be furnished to the payer & entire interest income could be received without any TDS.

Who can submit form No. 15H?

Any resident individual, who is of 60 years or more at any time during the financial year, can submit form No. 15H provided his tax liability on the basis of his estimated income is nil. Unlike form No. 15G, this form can be submitted by the senior citizen even though the interest amount from the payer may exceeds the basic exemption limit which is Rs. 3 Lacs for senior citizen (60 years or more) or Rs. 5 Lacs for very senior citizen (80 years of more).

Difference between form 15G and 15H:

  1. Form 15G can be submitted by individual below the Age of 60 Years while form 15H can be submitted by senior citizens (60 years & above).
  2. Form 15G can be submit by Hindu undivid families also but form 15H can be submitt only by Individual above the age of 60 years.
  3. 15Gcannot be file by any person whose income from interest on securities/interest other than “interest on securities” exceeds the applicable basic exemption limit.

In your specific case, Form No. 15H cannot be submitt as there is an ultimate tax liability of Rs. 7,000/-. If you wish that only Rs. 7,000/- be the amount of TDS, you may make an application for lower deduction of TDS in Form No. 13 to your Assessing Officer with income details incorporated therein. AO can issue lower deduction certificate authorizing bank to deduct tax at lower rate.


Query 2]

Sir, I have a query regarding IT Benefits that are available when a flat is purchase in joint ownership.  Query is as under:

  1. I and my real brother buy a flat in Bengaluru, flat is jointly own by us.  Registration is do our name. We have a taken a joint loan for the same and paying equal share of EMI towards loan through my brothers bank account. That is to say, I transfer my share (50%) to my brothers account, he adds balance 50% and then total amount as EMI is transferr to Loan account from my brother’s SB Account.
  2. My brother is staying in the flat and as of now showing it as “SELF OCCUPIED”. Our interest portion of house loan is more than Rs 5 Lacs per annum. 
  3. Only my brother is showing as self occupied and claiming Rs. 1.50 Lacs of EMI as IT exemption. Kindly advice us to maximize the tax benefits by both of us. [mash******]


Income tax benefit can be claim in respect of one house property own by the individual taxpayer even if it could not be self occupy for any reason whatsoever. House property need not be self occupied for the purpose of claiming income tax benefit available towards payment of interest & principal of housing loan. In your specific case, it appears that you own only one house property jointly with your brother & it is individually occupied by your brother. In such a case, you would also be able to claim deduction U/s 24(b) towards . Interest payment (up to a maximum of Rs. 2 Lacs from FY 2014-15) & U/s 80C towards principal repayment up to a maximum of Rs. 1.50 Lacs u/s 80C.

15G or 15H

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