What is Form 15G & 15H?

What is Form 15G & 15H ?




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What is Form 15G & 15H?

         Almost people are aware that Form 15G & 15H are used to avoid the TDS deduction.

Before submitting the Form 15G & 15H some important points are kept in mind.

  • Form 15H:
  • It is a declaration under sub-sec (1C) of the section 197A of the Income Tax Act.
  • It is to be submitted by an individual who is of the age of 60 years or more
  • The assessee can submit 15H, even if the interest income exceed basic exemption limit, provided the tax paid on total income for the relevant previous year is
  • Form 15G:
  • It is a declaration under sub-sec (1C) of the section 197A of the Income Tax Act.
  • Form 15G can be submitted by Individual below the age of 60 years and Hindu Undivided family.
  • Bank F.D. Interest income should not exceed basic exemption limit (i.e Rs 2,50,000). Otherwise the bank will deduct TDS though you have submitted 15G.

 

Format of Forms

 

Declaration/Verification (Form 15H)

*I/We……………………………………………………… do hereby declare that to the best of *my/our knowledge and belief what is stated above is correct, complete and is truly stated. *I/We declare that the incomes referred to in this form are not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961. *I/We further declare that the tax *on my/our estimated total income including *income/incomes referred to in column 16 *and aggregate amount of *income/incomes referred to in column 18 computed in accordance with the provisions of the Income-tax Act, 1961, for the previous year ending on ………………………… relevant to the assessment year ………………………… will be nil. *I/We also declare that *my/our *income/incomes referred to in column 16 *and the aggregate amount of *income/incomes referred to in column 18 for the previous year ending on ………………………… relevant to the assessment year ………………………… will not exceed the maximum amount which is not chargeable to income-tax.

 

Declaration/Verification (Form 15G)

*I/We………………………………………………. do hereby declare that to the best of *my/our knowledge and belief what is stated above is correct, complete and is truly stated. *I/We declare that the incomes referred to in this form are not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961. *I/We further declare that the tax *on my/our estimated total income including *income/incomes referred to in column 16 *and aggregate amount of *income/incomes referred to in column 18 computed in accordance with the provisions of the Income-tax Act, 1961, for the previous year ending on……….. relevant to the assessment year………………… will be nil. *I/We also declare that *my/our *income/incomes referred to in column 16 *and the aggregate amount of *income/incomes referred to in column 18 for the previous year ending on …………………  relevant to the assessment year……………… will not exceed the maximum amount which is not charge‑able to income-tax.

 

  • Some special points regarding Form 15G/H:-

 

1) PAN is mandatory for making declaration using Form 15G/H from 01/04/2010.

2) It should be deposited at the beginning of each financial year, so that TDS would not deduct by the bank.

3) These Forms should be deposited at each and every branch where the deposit has been made. For example, if you have made deposits at three different branches of Axis Bank, then you have to submit the Forms at each branch separately.

4) These Forms can only be used for payments like dividends, interest on securities, interest other than interest on securities, national saving schemes, interest on units. For other types of payments, these forms cannot be used.

5)These Forms are not applicable for NRIs

Comparative analysis for ease of understanding of the provisions:

Age Interest Income Other Income Deduction Total taxable Income Rebate of Sec 87 A Total Tax payable

(excluding Cess)

Eligibility Remark
Below 60 years Rs. 2.7 lakhs Rs. 1.2 lakhs Rs. 1.5 lakhs Rs. 2.4 lakhs NIL NIL NO As the interest income exceeds than basic exemption
Below 60 years Rs. 2.4 lakhs Rs. 1.8 lakhs Rs. 1.5 lakhs Rs. 2.7 lakhs Rs. 1000 NIL YES As the interest income does not exceeds than basic exemption
Below 60 years Rs. 3.2

lakhs

Rs. 2.5 lakhs Rs. 1.5 lakhs Rs. 4.2 lakhs No Rs.8500 No As Total income exceeds than basic exemption
Above 60 years Rs. 3.2 lakhs Rs. 1.7 lakhs Rs. 1.5 lakhs Rs. 3.4 lakhs Rs. 2000/- NIL YES As Total Tax is Nil
Above 60 years Rs. 3.2 lakhs Rs. 2.7 lakhs Rs. 1.5 lakhs Rs. 4.4 lakhs No Rs.7000 No As Total Tax is not Nil

So before submitting the Form 15G & 15H, one should calculate his tax liability & decide the eligibility. Because if it is wrongly submitted then Penalty & Imprisonment will be attracted according to section 277 of Income tax act.

By. CA. Monika N Rathi

 


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