Form 15G and Form 15H act as an escape weapon for people who want to save taxes. It prevents banks from deducting TDS on the interest earned on Fixed Deposits (FD) if the total interest income is less than the recommended limit. But before filing the forms, one should know their key differences and attached uses. This article focuses on how to fill 15G form and 15H form and what are the prime differences between them.
Form 15G defined
If your overall taxable income is less than INR 2.5 lakhs, you need not pay any tax for it. Likewise, if your taxable income ends at more than INR 2.5 lakhs but is less than INR 5 lakhs, then you may appeal for a tax rebate to nullify your generated tax liability. There’s an exception, in case if your income is not taxable, you can refer to Form 15G as an escape route against TDS deduction on interest income. It displays a declaration by the taxpayer to the bank to erase TDS from their interest income of more than INR 40,000, as his taxable income is null and void. Continue reading to find out how to fill 15G form.
Eligibility criteria for filing Form 15G and 15H
- You should be a citizen of India or a member of a Hindu Undivided Family.
- Your age should be less than 60 years (more than 60 years in case of 15H form).
- Your tax liability should be nil.
- The total interest income that you have incurred is less than the threshold limit of the mentioned tax slots.
How to fill 15G form?
- Both 15G and 15H forms can be filled manually or online.
- Under the division where the income requirement is asked, an aggregate of all the incomes needs to be mentioned to apply for TDS exemption.
- The calculated aggregate income of the previous year should be added in the correct field.
- The total number of Form 15G or Form 15H that you are filing should be mentioned without fail.
- The aggregate income should be specified.
- The signature of the taxpayer should be stamped after the declaration is made.
Form 15H defined
Now that you know how to fill 15G Form, let’s know the 15H form in brief.
15H has a similar denotative meaning with an objective as of Form 15G; with a thin line of difference between the two. This form is pertinent for senior citizen taxpayers. Therefore, if you are aged 60 years or above, you undoubtedly qualify to submit Form 15H to claim a TDS waiver on your interest income if it surpasses INR 50,000. In case you want to learn further about these two forms, check more here.
Here’s the difference between Form 15G and Form 15H
|Form 15G||Form 15H|
|You should be less than 60 years of age||You should be at least 60 or above to be eligible|
|Hindu Undivided Families can retrieve benefits||Can’t be availed by Hindu Undivided Families|
|The total interest income should be less than INR 2.5 lakhs||Form 15H doesn’t debar anyone if income is less than the set parameters|
|The interest income should be higher than INR 40,000||The interest income should be above INR 50,000|
The gateway to save more!
The Indian economy is full of holes that lead to a major setback in filing legal procedures. Based on the scenario of dealing with accountancy and taxes, it is pertinent to the quest for ways to reduce the tax payable. Forms 15G and 15H act as an arch for the taxpayers to pay less and save more. Thus, once an individual files for them, he becomes free from the extra load of TDS cut.